Economic Structural Transformation in Emerging Market Countries

2021 ◽  
pp. 097491012110046
Author(s):  
Kunling Zhang
Keyword(s):  
Economic Development ◽  
Labor Force ◽  
Structural Transformation ◽  
Service Sector ◽  
Agricultural Sector ◽  
Emerging Market ◽  
Value Added ◽  
Industrial Sector ◽  
Trade Structure ◽  
Emerging Market Countries

This article analyzes the structural transformation in 30 emerging market countries (E30) on the dimensions of industry, trade, and urbanization. It finds that first, in the agricultural sector, E30 have contributed greatly to the increase of the global agricultural productivity and the transfer of labor force from the agricultural sector to industry or the service sector. However, these countries still feature a high percentage of agricultural employment, which means there is vast room for shifting the agricultural labor force. Second, in the industrial sector, E30 have made remarkable contributions to the world’s industrial development but have also displayed a trend of premature “deindustrialization.” Third, the service sector has picked up speed and gradually turned into a new driver of economic development in E30. Against this backdrop, E30 face the major challenge of how to cope with the premature deindustrialization and smoothly shift the economic growth engine from the industrial sector to the service sector. Fourth, E30 have become an important force in the world trade, with their trade structure switching from simple, primary, low-value-added goods to sophisticated, high-grade, and high-value-added goods and services. However, some emerging market countries are more susceptible to the impacts of the anti-globalization trend because of their high reliance on foreign trade and improper trade structure. Therefore, how to diversify the economy and enhance its economic resilience holds the key to the sustainable economic development of E30. Fifth, E30 have contributed greatly to world urbanization. As urbanization relies more on the service sector than on the industrial sector, it is vital to properly strike a balance between industrialization and urbanization, and between industrialization and service sector development.

scholarly journals Does the Declining Share of Agricultural Output in GDP Indicate Structural Transformation? The Case of Ethiopia

2019 ◽  
Vol 11 (5(J)) ◽  
pp. 54-68
Author(s):  
Adisu Abebaw Degu ◽  
Admassu Tesso Huluka
Keyword(s):  
Structural Transformation ◽  
Rural Areas ◽  
Demographic Transition ◽  
Service Sector ◽  
Agricultural Sector ◽  
Primary Source ◽  
Industrial Sector ◽  
Agricultural Output ◽  
Agriculture Sector ◽  
Relative Decline

It is not uncommon that different government officials and practitioners infer the fallingagricultural share in GDP to the underpinning of structural transformation in an economy. By using variousstudies result and a time series of data spanning from 1981 up to 2017, this paper investigated, whetherthe declining share of agricultural output in GDP is indicating structural transformation or not in Ethiopianeconomy. The study showed that the service is the fastest-growing sector in Ethiopia, and it covers morethan 40% of GDP. The share of agriculture sector was 45% of GDP until 2011, while the industry sector hasbeen stagnating. Thus, it shows how the falling share of the agriculture sector in GDP is being supersededby the service sector. Empirical works also reveal that even though the share of the agricultural sector inGDP is falling, it is the primary source for the overall economic growth of Ethiopia. The share of the ruralpopulation has decreased from 89 percent in 1981 to 80% in the year 2017. So the vast population of thecountry is living in rural areas where agricultural-based activities are common. Lack of labor shift from theagricultural sector to the industrial sector can also be attributed to the insufficient expansion of themodern industrial sector to absorb the growing force labor. Furth more, the demographic transition alsoshowed a relative decline. Since structural transformation involves several interrelated processes, thedeclining share of agriculture output to GDP alone cannot explain the prevalence of structural change; theother processes like; industrialization, urbanization, and demographic transition need to be scrutinized

scholarly journals Factors that Influence the Rate of Unemployment in Indonesia

2017 ◽  
Vol 10 (1) ◽  
pp. 140
Author(s):  
Erna A. R. Puspadjuita
Keyword(s):  
Labor Force ◽  
Wage Rate ◽  
Service Sector ◽  
Agricultural Sector ◽  
Industrial Sector ◽  
Force Level ◽  
Analysis Technique ◽  
Negative Effect ◽  
Force Variable ◽  
Positive Effect

This research was aimed at analyzing the effect of urbanization, industrialization, labor force level, the elasticity of labor force and minimum regional wage rate in Indonesia. The analysis technique used were descriptive and multiple linear regression. The result on α = 5% shows that the labor force variable was significant to unemployment level in Indonesia. Industrialization shows a positive effect and non-significant to unemployment level, it means that the capability of industrial sector is lower in reducing unemployment compared with agricultural sector and service sector. The elasticity of labor force is negative and non-significant to unemployment sector. The result of regression shows that the elasticity of labor force is non-significant to unemployment level. The variable of minimum regional wage rate shows negative effect and non-significant to unemployment level means that the wage rate is not invisible.

scholarly journals The Role of Agricultural Sector Productivity in Economic Growth: The Case of Iran’s Economic Development Plan

2018 ◽  
Vol 10 (1) ◽  
pp. 16 ◽  
Author(s):  
Morteza Tahamipour ◽  
Mina Mahmoudi
Keyword(s):  
Economic Development ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Agricultural Sector ◽  
Value Added ◽  
Total Factor Productivity Growth ◽  
Development Plan ◽  
Factor Productivity ◽  
Economic Development Plan

This study provides the theoretical framework and empirical model for productivity growth evaluations in agricultural sector as one of the most important sectors in Iran’s economic development plan. We use the Solow residual model to measure the productivity growth share in the value-added growth of the agricultural sector. Our time series data includes value-added per worker, employment, and capital in this sector. The results show that the average total factor productivity growth rate in the agricultural sector is -0.72% during 1991-2010. Also, during this period, the share of total factor productivity growth in the value-added growth is -19.6%, while it has been forecasted to be 33.8% in the fourth development plan. Considering the effective role of capital in the agricultural low productivity, we suggest applying productivity management plans (especially in regards of capital productivity) to achieve future growth goals.

scholarly journals Stride of Service Sector in Nepal’s Trajectories of Structural Change

2018 ◽  
pp. 69-98
Author(s):  
Madhav Prasad Dahal
Keyword(s):  
Structural Transformation ◽  
Service Sector ◽  
Time Series Data ◽  
Value Added ◽  
Developed Countries ◽  
Policy Implications ◽  
Series Data ◽  
Economic Sectors ◽  
Distributed Lag ◽  
Gross Value Added

Agriculture, manufacturing and service sectors are the major economic sectors of a country. The long held view is that economies’ development trajectories move from agriculture to manufacturing to services. These conclusions are primarily based on the studies of developed countries. However more recent studies relating to developing countries have brought evidences that the structural transformation path is not linear as experienced by today’s developed countries. Nepal is not an exception is experiencing the waves of sector-wise structural transformation. Using time series data of the period 1975-2016 of the economy of Nepal this paper analyses the association between gross value added and service sector value added in the analytic-framework of the autoregressive distributed lag (ARDL) to cointegration. The empirical result reveal a cointegrating relationship between real gross value added and service sector value added. Result also show service sector enhancing role of education and export trade of Nepal. The paper finally draws few policy implications essential for service sector sustainability to support overall economic growth.Economic Journal of Development Issues Vol. 21 & 22 No. 1-2 (2016) Combined Issue

scholarly journals A Comparative Study of Public and Private Sector Organizations about the Impact of Training and Management Development Programmes on Organizational Productivity

2019 ◽  
Vol 13 (01) ◽  
Author(s):  
Saman Khan ◽  
Bhavika Bharti
Keyword(s):  
Private Sector ◽  
Service Sector ◽  
Emerging Market ◽  
Management Development ◽  
Organizational Productivity ◽  
Public And Private ◽  
Emerging Market Countries ◽  
Private Sector Organizations ◽  
Public And Private Sector ◽  
The Impact

India has become one of the fastest growing economies in the world over the last two decades, undoubtedly aided in this performance by economic reforms. The striking aspect of India’s recent growth has been the dynamism of the service sector, while, in contrast, manufacturing has been much less robust, contrary to the experience in other emerging market countries, where manufacturing has grown much faster than GDP. Present study is focused on a comparative evaluation of two steel giants in India i.e. SAIL and TATA steel. The study reveals that training and MDP have positive correlation with employee development, employee satisfaction and organizational productivity whereas it has been found that private sector managers (TATA Steel) have more positive opinion for training and MDP in comparison with public sector enterprise (SAIL)

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals The Evolutionary Trend of Global Inequality: Analyzing the Impacts of Economic Structure

2021 ◽  
Vol 12 ◽  
Author(s):  
Ning Ma ◽  
Victor Jing Li ◽  
Tsun Se Cheong ◽  
Delin Zhuang
Keyword(s):  
Service Sector ◽  
Agricultural Sector ◽  
Economic Structure ◽  
Industrial Sector ◽  
Evolutionary Trend ◽  
The South ◽  
Global Inequality ◽  
The North ◽  
Income Groups ◽  
Service Sectors

The aim of this study is to examine the evolution of inequality by focusing on the impacts of the economic structure. The technique of decomposition by income sources is employed to evaluate the contribution of the three major sectors, namely the agricultural, industrial, and service sectors to overall inequality. The data cover almost all the countries in the world from 2001 to 2017 for a total of 18 years. There are four stages of analysis in this study. The first stage of study is to provide an overall view of the evolutionary trend of global inequality, the second stage focuses on the North-South divide, the third stage determines the impacts of income groups, and the fourth stage investigates the impacts for each region. There are several salient findings: First, global inequality had declined in the study period. Second, the service sector is identified as the largest contributor to global inequality, followed by the industrial sector, while the contribution of the agricultural sector is negligible. For the North-South divide, disparity in the service sector was more marked in the North than in the South. The industrial sector played a major role in the South and contributed more than 40% to overall inequality. For the comparison amongst the income groups, our findings show that the higher the income, the higher the percentage contribution of the service sector (except for the low-income group). Finally, for the comparison across regions, although the contribution of the agricultural sector in most regions are below 1.5%; however, the contribution of the agricultural sector in both Sub-Saharan Africa and South Asia is more than 8%. It implies that a lot of people in these regions still rely on the agricultural sector for a living, and the development in the industrial and service sectors in these two regions lagged behind those of the other regions. Our analysis show that the evolution pattern is very different for each region, therefore, it is necessary to take the effects of income and geographical location into consideration in formulating development policies.

scholarly journals MASALAH UPAH DI JAWA: DARI SRIHARJO TAHUN 1960-AN KE TANGERANG TAHUN 1990-AN*

Populasi ◽  
2016 ◽  
Vol 7 (1) ◽  
Author(s):  
Chris Manning
Keyword(s):  
Structural Transformation ◽  
Labor Unions ◽  
Carrying Capacity ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Industrial Sector ◽  
Industrial Workers ◽  
Bargaining Position ◽  
Limited Supply ◽  
The Impact

The results of the PJPI reject the findings of earlier researches about the concept of disguised unemployment. In the context of the carrying capacity of the natural resources of a place compared with the existing population, its relationship with poverty is no longer very strong. Srihardjo is one of the villages in the island of Java which disagrees with this concept, where by the limited supply of the agricultural land can perfectly be substituted with the labor market in the industrial sector. However, the impact of the economic structural transformation at this time has got a balance on the wage dimension in the non-agricultural sector, particularly among the industrial workers, and the workers in the informal sector. This issue has the inevitable consequence of the exploitative tendency of the employers or entrepreneurs, and lack of support for the labor unions, which places them in a weak bargaining position in efforts to have their wages raised. Chris Manning in his paper shows the impact of the economic structural transformation on the production of workers, and their level from the agricultural sector (Srihardjo) to an industrial sector (Tangerang).

scholarly journals Two Perspectives on Preferences and Structural Transformation

2013 ◽  
Vol 103 (7) ◽  
pp. 2752-2789 ◽  
Author(s):  
Berthold Herrendorf ◽  
Richard Rogerson ◽  
Ákos Valentinyi
Keyword(s):  
United States ◽  
Structural Transformation ◽  
Service Sector ◽  
Value Added ◽  
The United States ◽  
Service Industries ◽  
Relative Prices ◽  
Income Effects ◽  
Output Structure ◽  
Price Effects

We assess the empirical importance of changes in income and relative prices for structural transformation in the postwar United States. We explain two natural approaches to the data: sectors may be categories of final expenditure or value added; e.g., the service sector may be the final expenditure on services or the value added from service industries. We estimate preferences for each approach and find that with final expenditure income effects are the dominant force behind structural transformation, whereas with value-added categories price effects are more important. We show how the input-output structure of the United States can reconcile these findings. (JEL E21, L16)

scholarly journals INTERNATIONAL COMPETITIVENESS OF THE AGRO-INDUSTRIAL SECTOR OF UKRAINE IN TERMS OF MODERN ECONOMIC GLOBALISATION

2020 ◽  
Author(s):  
Veronika Chala ◽  
◽  
Ye. S. Barbul ◽  
Keyword(s):  
Agricultural Sector ◽  
Raw Materials ◽  
Value Added ◽  
Foreign Market ◽  
World Market ◽  
Industrial Sector ◽  
Industrial Complex ◽  
Highly Qualified ◽  
Resource Base ◽  
Broad Concept

The competitiveness of the agro-industrial sector should be considered as a fairly broad concept that characterizes the ability to compete in both domestic and foreign markets and is measured by the degree of presence of domestic products in them. The agro-industrial complex of Ukraine is one of the key components in the process of solving certain socio-economic problems. Domestic farmers have significant potential for development, the implementation of which requires addressing a number of obstacles. Despite the fact that Ukraine is one of the leaders in the export of agricultural products to the international market, in the future the development of the domestic agricultural sector may face significant problems due to low technology, insufficient inflow of investment resources, lack of highly qualified specialists in the industry. The article examines the prospects for the development of the domestic agro-industrial complex in the context of European integration. Ukrainian agricultural producers have a strong resource base for short-term capitalization and development of agricultural production, at the same time, agricultural enterprises are producers of raw materials, not finished products for consumption. Therefore, the efficiency of enterprises depends on the redistribution of income at all stages of value added. Reducing the cost of raw materials directly proportionally affects the profitability of production and efficiency of enterprises. The purpose of this article is to identify problems and prospects of agricultural entrepreneurship in Ukraine, and provide proposals for sustainable development of agriculture. The authors got acquainted with the mechanism of assessing the competitiveness of the enterprise and developing ways to increase competitive positions in the foreign market. The transformation of the agricultural sector of Ukraine is due to current trends, primarily in the world market. The integration of Ukrainian society into the European community encourages and forces domestic producers of the agricultural sector to produce products that are highly efficient and competitive, as the requirements for the quality characteristics of finished products increase.

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