Structural Transformation of Jobs from Manufacturing to Services: Will It Work for India?

2021 ◽  
Vol 15 (1) ◽  
pp. 22-49
Author(s):  
Soumya Bhadury ◽  
Abhinav Narayanan ◽  
Bhanu Pratap
Keyword(s):  
Developing Economies ◽  
Labour Force ◽  
Labour Productivity ◽  
Jel Codes ◽  
Services Sector ◽  
Lower Productivity ◽  
World Economic ◽  
Rapid Replacement ◽  
Economic Survey ◽  
Economic Outlook

India has struggled with the question of what to make in India—manufacturing or services. The Economic Survey 2014–2015 articulated that this was a false choice. Instead, India faced a choice between two disparate types of sectors, unskilled-intensive and skilled-intensive, in both of which India possessed a comparative advantage. Two years down the line, the Economic Survey 2016–2017 suggested that labour-intensive sectors may be more effective in addressing India’s job challenge. The World Economic Outlook Report 2018 has suggested that a rapid replacement in the share of manufacturing jobs by services is likely to have a welfare-enhancing effect on developed and developing economies alike. As the Economic Survey 2014–2015 suggested that this is both a positive and a policy question. This article re-examines this question of manufacturing versus services in the Indian context to contribute to this debate. Specifically, we use the KLEMS India dataset to examine the dynamics of labour productivity associated with (a) a steady shift in the composition of the workforce towards the services sector and (b) investment in human capital proxied by changes in the labour quality index. Contrary to the WEO’s policy prescription, our findings suggest that an increasing prevalence of informal job contracts in services could potentially weaken the positive relationship between labour quality and labour productivity. Additionally, we observe that India’s labour force seems to be rapidly shifting towards services sub-sectors with lower productivity. This mechanism is likely to obstruct any potential gains in productivity, associated with an optimal relocation of factors of production. JEL codes: J21, J24, O14, C31, C33

scholarly journals Efficient Utilization of Resources in Manufacturing Firms

2013 ◽  
Vol 9 (3) ◽  
pp. 182-196
Author(s):  
Md. Shakil Ahmed ◽  
Mohammed Ziaul Haider
Keyword(s):  
Small Firms ◽  
Large Scale ◽  
Labour Force ◽  
Labour Productivity ◽  
Manufacturing Firms ◽  
West Region ◽  
Lower Productivity ◽  
Long Run ◽  
Productive Labour ◽  
Medium Firms

This study describes the optimality in resource utilization of the manufacturing firms in the south-west region of Bangladesh. A translog production function has been estimated to describe the input-output relationship. The large scale firms have the opportunity to substitute capital for labour for producing the same level of output. On the other hand, scarcity in capital leads to lower productivity of labour in medium and small firms. Therefore, an increase in capital may lead to an increase in labour productivity as well as output for these small and medium firms. The productive labour force may ensure proper utilization of the capital resources as well as the long run growth.

Competitiveness of dried sector: A case study of world and Turkey

2020 ◽  
Vol 66 (No. 8) ◽  
pp. 365-372
Author(s):  
Tunahan Erdem
Keyword(s):  
Agricultural Products ◽  
The Other ◽  
Local Currency ◽  
Political Crises ◽  
The World ◽  
World Economic ◽  
World Economic Crisis ◽  
Specific Country ◽  
Economic Outlook

The study aimed to reveal the competitiveness of the world dried sector for some selected products such as dried apples, prunes, apricots, figs, and grapes. In the study, the data was subjected to the Revealed Comparative Advantage (RCA), Relative Export Advantage (RXA), Relative Import Advantage (RMA), Relative Trade Advantage (RTA) and Relative Competitiveness (RC) indices. RCA is an index developed by Balassa to determine the competitiveness of a specific country for selected products or goods. To demonstrate the economic outlook for the world dried sector, the 2007 to 2017 data of China, USA, Chile, Germany, Iran, the Netherlands, South Africa, France, Uzbekistan, Argentina, Spain, Turkey, and India were compared, these countries dominating the sector of selected dried agricultural products. The results demonstrated that the world dried sector is very responsive to economic crises and to local currency rate. The RCA index was found to be 4.66 in 2007 for Turkey and it decreased to 4.45 by 2009 during the world economic crisis. The other breaking point was 2013 when Turkey experienced both economic and political crises.

Le grandi imprese nel sistema produttivo italiano

2009 ◽  
pp. 31-39
Author(s):  
Riccardo Gallo
Keyword(s):  
Social Support ◽  
Corporate Governance ◽  
Economic Performance ◽  
Labour Productivity ◽  
Financial Structure ◽  
Jel Classification ◽  
The Other ◽  
Manufacturing Companies ◽  
Economic Outlook

- Based on the analysis of the R&S-Mediobanca survey on multinationals, in 2006 the 17 Italians were small, but not "midgets", as a result of domestic and mostly transnational M&As. In the last ten years, their economic performance and financial structure have been always very sound and in line with the other multinationals. Their labour productivity has been lower than the average, but has improved since 1997. Italian manufacturing multinationals, however, show lower ratios than those of the utilities sector. Given the dire economic outlook worldwide, the Author believes that multinationals, Government and Unions in Italy should provide social support, mostly at labour level, and implement measures aimed at increasing size and productivity, fostering globalisation, and improving corporate governance. Keywords: multinationals, size, ratios, manufacturing companies, utilities, crisis, outlook, social support, corporate governance Parole chiave: multinazionali, dimensione, indicatori, manifatturiere, servizi, crisi, previsioni, ammortizzatori sociali, corporate governance Jel Classification: L25

POSSIBILITIES OF REALIZATION OF SERVICE SECTOR POTENTIAL IN THE GLOBAL ECONOMY

2021 ◽  
Author(s):  
Oksana Melnichuk
Keyword(s):  
International Trade ◽  
Gross Domestic Product ◽  
Global Economy ◽  
World Economy ◽  
Service Sector ◽  
Developing Economies ◽  
Domestic Product ◽  
Trade In Services ◽  
Services Sector ◽  
The World

The relevance of the study is due to the growing role of services in the world economy. Trade in services has become the dominant driver of economic growth and development in both developed and developing economies. Since the 1980s, data suggest that there is a stronger relationship between trade in services and gross domestic product (GDP) than in the case of commodity growth and GDP. It is noted that the quality of policies, regulations and institutional frameworks is a key factor in determining the effectiveness of services. As services are increasingly subject to liberalization through multilateral and regional trade agreements, it is important that countries develop harmonized approaches to internal regulation and trade liberalization in the services sector. The article identifies the features and characteristics of the service sector as a factor of multifaceted development and growth. The dynamics of international trade in services by geographical structure and types of development of countries is studied on the basis of statistical data of international organizations, taking into account the impact of the pandemic. It is noted that international trade in services is becoming an increasingly important part of global commerce. The problematic aspects of the activity of small business entities to enter foreign markets of services are considered. The issue of urgency of digital economy development for the sphere of services and contribution to world markets is outlined. Opening up the services sector has the potential to bring great benefits and deserves more attention. Further prospects for the realization of entrepreneurial potential in a comprehensive global economy are outlined. It is noted that services are an important part of the world economy, generating more than two-thirds of world gross domestic product (GDP), attracting more than three-quarters of foreign direct investment in developed economies, and creating most of new jobs worldwide. Establishing effective coordination mechanisms between trade negotiators, policymakers and regulators will be an important tool for the development of the global economy.

scholarly journals Industrial Case Study on Lean Manufacturing Implemented on Manufacturing Polypropylene Ropes Industry Amravati

2021 ◽  
Vol 9 (12) ◽  
pp. 1318-1323
Author(s):  
Vipul Deshpande
Keyword(s):  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Service Industry ◽  
Developing Economies ◽  
Labour Productivity ◽  
Shop Floor ◽  
Industrial Case Study ◽  
Lean Principles ◽  
Manufacturing Techniques

Abstract: Lean manufacturing has been one of the most standard method in the manufacturing and service industry for elimination of waste. Every manufacturing industry has to put in continuous effort for its survival in the current impulsive and competitive economy. The purpose of this paper is to investigate the adoption of lean manufacturing tools and techniques in the manufacturing industries. This paper is based on actual implementation of lean manufacturing techniques. It focuses on the execution of flow from the start until the end of the implementation, types of analysis and tools applied, evaluation methods and how the industry benefited from the implementation. In this case study we particularly focused on Shop floor management, Quality Management (QM), Supplier and Customer Management (SCM) and Workforce Management (WM). After going through various testing on implementation of Lean Manufacturing principles in Micro Small medium Enterprise (MSME), researcher studied thoughts of some author where they discussed pragmatic problems they overcome while implementing lean principles in developing economies MSME. At the end, the result shows that there is monthly increment in capital productivity and labour productivity. And decrement in inhouse rejection, breakdown hours and customer complaint from the implementation of lean.

scholarly journals Services Sector in Lithuania: Labour Productivity as a Factor of Growth

Ekonomika ◽  
2008 ◽  
Vol 81 ◽  
Author(s):  
Jolanta Žemgulienė
Keyword(s):  
Growth Rate ◽  
Comparative Analysis ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Value Added ◽  
Service Industries ◽  
Services Sector ◽  
Labour Productivity Growth ◽  
Empirical Regularities ◽  
The Relationship

This paper examines the tendencies of Lithuanian services sector’s value added and labour productivity during 1995-2006. Comparative analysis of the average annual labour productivity growth in manufacturing and service industries reveals arguments supporting the W. Baumol’s consideration that there can be sporadic productivity increases in nonprogressive sectors. During 1995-2000, labour productivity growth in services exceeded productivity growth in manufacturing. The paper offers an interpretation of the Verdoom law for empirical regularities of the relationship between the cross-sectorial labour productivity growth rate and the value added growth rate.

scholarly journals REMUNERATIONS AND LABOUR PRODUCTIVITY IN AGRICULTURE AGAINST A BACKGROUND OF OTHER ECONOMY SECTORS

2018 ◽  
Vol 17 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Justyna Góral ◽  
Włodzimierz Rembisz
Keyword(s):  
Agricultural Sector ◽  
Optimal Allocation ◽  
Labour Force ◽  
Empirical Studies ◽  
Labour Productivity ◽  
Allocation Of Resources ◽  
Economic Activities ◽  
Agricultural Producers ◽  
The Sustainable Development ◽  
Economic Growth Model

The optimal allocation of resources in various sectors results in the sustainable development of the whole economy (the theory of optimum allocation of resources by Kantonowicz and Koopmans). According to Tinbergen’s studies, the excessive labour force in one of them gives rise to all types of social and economic problems. The objective of theoretical considerations and empirical studies of this publication is to analyse the ratio of the remuneration for labour to its productivity in various economy sectors with particular attention paid to the agricultural sector. The authors also refer to the theory by Lewis and Schultz, who had analysed the problems of agriculture in developing countries, as well as to the Solow economic growth model with the Cobb–Douglas production function. In the light of the empirical data presented in the paper, we can conclude that in section A of Statistical Classification of Economic Activities this ratio is seriously disturbed and distorted. The remuneration is overvalued in relation to the labour productivity. Such a ratio is not a positive testimony to the reasonableness of management in the sense of agricultural producers’ equilibria.

scholarly journals An Evaluation of the World Economic Outlook Forecasts

2006 ◽  
Vol 06 (59) ◽  
pp. 1 ◽  
Author(s):  
Allan Timmermann ◽  
Keyword(s):  
The World ◽  
World Economic ◽  
Economic Outlook
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