scholarly journals Potential GDP and its factors assessment

2021 ◽  
Vol 6 (4(62)) ◽  
Author(s):  
Tetiana Kvasha
Keyword(s):  
Labor Productivity ◽  
Capital Investment ◽  
Population Aging ◽  
Growth Potential ◽  
Research And Innovation ◽  
Capital Productivity ◽  
Potential Gdp ◽  
Statistical Relationships ◽  
Investment Growth ◽  
New Jobs

The object of the study is the reserves of economic growth in the country on the example of Ukraine. One of the problems of such studies is the calculation of potential GDP, which is not observed, but is calculated on the basis of various methods. Also problematic is the choice of method/methods of calculating potential GDP and potential values of its factors. Any estimate of the potential value of a variable is based on one or more statistical relationships and therefore contains an element of uncertainty. In order to reduce uncertainty, 2 methods were used to determine the potential values of the components of GDP – the growth rate of employment, fixed capital and TFP (total factor productivity). The study used the methods of one-dimensional statistical filters Hodrick-Prescott and Baxter-King to estimate the potential values of GDP and the model of the production function to calculate potential GDP based on the potential values of its factors. The main reasons for the slowdown in Ukraine's GDP have been identified, the main of which is low capital productivity due to budget constraints. The second place in this ranking was taken by labor productivity, the last third – by TFP. Weak productivity and investment growth reinforced each other. Capital has the highest growth potential in Ukraine. Therefore, measures to stimulate capital investment, including in research and innovation and human capital, are important. Other factors that affect GDP through labor productivity and TFP are population aging, emigration, and tight lending conditions. To neutralize these factors, it is necessary to create new jobs, facilitate the conditions for obtaining loans by enterprises, stimulate advanced training and lifelong learning. The proposed approach to the separate calculation of potential values of GDP factors and their analysis find reserves for GDP growth. This provides the advantages of this method over other approaches.

Opportunities for accelerating labor productivity growth: The role of small and medium enterprises

2020 ◽  
pp. 98-114
Author(s):  
Evguenia V. Bessonova ◽  
Alexander G. Morozov ◽  
Natalia A. Turdyeva ◽  
Anna N. Tsvetkova
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Small And Medium Enterprises ◽  
Growth Potential ◽  
Business Climate ◽  
Labor Productivity Growth ◽  
Positive Effects ◽  
Low Efficiency ◽  
Medium Enterprises ◽  
Medium Firms

The paper considers necessary conditions for acceleration of labor productivity growth in Russia. Based on micro data, as well as aggregate data, the paper quantifies the contribution of small and medium firms to labor productivity growth. It shows that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate. Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential, to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.

Tourism Productivity Theory and Measurement for Policy Implications: The Case of Australia

2019 ◽  
Vol 59 (2) ◽  
pp. 247-266
Author(s):  
Tien Duc Pham
Keyword(s):  
Labor Productivity ◽  
Holistic Approach ◽  
Tourism Industry ◽  
Policy Implications ◽  
Policy Makers ◽  
Average Growth ◽  
Multifactor Productivity ◽  
Capital Productivity ◽  
Productivity Theory

Tourism productivity measures are quite diverse, not always compatible and usually based partly on labor productivity for hotels and restaurants. This article develops a holistic approach that integrates the principles of the growth accounting framework and tourism satellite account to measure multifactor productivity, labor productivity and capital productivity for the Australian tourism industry. This study shows that tourism has been identified as a reservoir for other industries through the ebbs and flows of labor demands. Compared with the rest of the economy, the average growth of labor productivity—that is, income per unit of labor—for tourism is stagnant, and has reached an unprecedented low, six times below the market sector average, mainly because of low multifactor productivity. The results are valuable for policy makers and the lobbying groups wanting to identify areas of need for policy changes to ensure the healthy long-term growth of tourism.

scholarly journals Aggregate implications of occupational inheritance in China and India

2018 ◽  
Vol 19 (1) ◽  
Author(s):  
Ting Ji
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Labor Productivity ◽  
Occupational Choice ◽  
Choice Model ◽  
Growth Potential ◽  
China And India ◽  
Productivity Gain ◽  
The Us ◽  
Occupational Inheritance

Abstract This paper documents occupational inheritance – that is, children’s inheritance of their parents’ occupations – in China, India, and other countries. Among the causes of the prevalence of occupational inheritance, we target two broad categories that impede growth: labor market frictions and barriers to human capital acquisition. Counterfactual experiments based on a tractable occupational choice model suggest that if the impediments mentioned above were reduced to the US levels, labor productivity would grow by 60–75% in China and 107–178% in India. China realized 74–89% of this growth potential from the 1980s to 2009. In addition, this productivity gain is accompanied by a decrease in the correlation of intergenerational incomes.

On the Production Functions of Labor Productivity in the Regions of Russia

2020 ◽  
Vol 8 (2) ◽  
pp. 8-12
Author(s):  
Leonid Basovskiy ◽  
Elena Basovskaya
Keyword(s):  
Labor Productivity ◽  
Consumer Price Index ◽  
Production Functions ◽  
Government Employees ◽  
Capital Productivity ◽  
Production Technologies ◽  
Advanced Production ◽  
The Impact ◽  
Continue Work ◽  
Exclusion Method

To identify determinants of labor productivity, correlation relationships were estimated for indicators reflecting the influence of 30 socio-economic and innovative factors in the regions for 2015-2017. Of the 30 factors, for some factors, a significant correlation was found, characterizing their indicators and labor productivity. For these indicators, models of linear production functions were constructed. Modeling made it possible to establish that the following factors have a significant impact on labor productivity: capital productivity, investment, foreign investment, the number of government employees, wages, income inequalities, the number of university faculty, the number of advanced production technologies used, and the consumer price index. The instability of assessing the impact of indicators characterizing the determinants of labor productivity can be explained by two reasons of a different nature. Firstly, the development of the country's economic system at present may in fact be unstable. This problem determines the need for additional research. Secondly, the models obtained by the standard inclusion-exclusion method without taking into account and eliminating the multicollenarity effect can significantly reduce the reliability of estimates obtained by the least common square method. This determines the need to continue work using a more advanced modeling technique.

Promoting SMEs and Enhancing Labor Productivity in Singapore: A Policy Analysis

2014 ◽  
Vol 05 (03) ◽  
pp. 1440012
Author(s):  
Khee Giap Tan ◽  
Yan Yi Tan
Keyword(s):  
Labor Productivity ◽  
Employment Growth ◽  
Small And Medium Enterprises ◽  
Gdp Growth ◽  
Challenges And Opportunities ◽  
Potential Gdp ◽  
Per Capita ◽  
Cross Country ◽  
Medium Enterprises ◽  
Performance Challenges

While Singapore has been doing well in terms of cross-country per capita income comparisons and in terms of overall employment growth, it has been a laggard when it comes to labor productivity and this concern is more serious for small and medium enterprises (SMEs). In this context, this paper first identifies the sources of gross domestic product (GDP) growth and simulates different scenarios pertaining to the potential GDP which the economy can achieve given the level of required productivity based on some employment-growth assumptions. Further, the paper reevaluates the performance, challenges and opportunities for SMEs as well as suggests several policy strategies as to how SMEs can synergize and be more competitive moving forward.

China's Growth Slowdown and Prospects for Becoming a High-Income Developed Economy

2017 ◽  
Vol 16 (1) ◽  
pp. 89-113 ◽  
Author(s):  
Ding Lu
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Analytical Framework ◽  
Early Observation ◽  
High Income ◽  
Growth Potential ◽  
Labor Productivity Growth ◽  
Tfp Growth ◽  
Moderate Growth ◽  
China’S Growth

After decades of hyper growth, China's economy has slowed significantly in recent years, causing widespread anxiety both within and outside the country. Although economists have not reached a consensus about China's growth potential, it is undeniable that the country has switched gears toward a “new normal” of moderate growth amidst ongoing structural change. To assess China's growth performance and prospects, this study modifies Masahiko Aoki's analytical framework of a unified growth theory into a multi-sector model and applies it to identify the sources of China's per capita income growth in recent decades. The analysis confirms Aoki's early observation that China entered the so-called “Kuznets phase” of development in the 1980s, which then became overlapped by the H-phase, in which human capital–based growth is characterized by high labor productivity growth. This study provides evidence that China's labor productivity growth has been predominantly driven by fixed capital formation. It also reveals that the Kuznets effect (with its labor reallocation effect) has now passed its peak and is fading away. The most alarming finding is that net total factor productivity (TFP) growth in the latest period has slowed to a near halt. This trend is particularly worrisome given that China has exhausted its past demographic dividend and its industrial structure has evolved to the end of industrialization stage. Meanwhile, demographic projections clearly indicate that China has entered what Aoki defined as the development phase of “post demographic transition.” Whether China can reverse the downward trend of TFP growth will determine how soon it can achieve the goal of becoming a high-income developed economy.

scholarly journals Impact of Venture Capital Investment Syndication on Enterprise Lifecycle and Success

2016 ◽  
Vol 8 (5) ◽  
pp. 75 ◽  
Author(s):  
Asif Siddiqui ◽  
Dora Marinova ◽  
Amzad Hossain
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Survival Duration ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Investment Theory ◽  
Capital Financing ◽  
History Of ◽  
Investment Growth ◽  
The Impact

The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures.

scholarly journals Outcome of capital investment on labor productivity in agriculture sector of Ukraine

2020 ◽  
Vol 7 (1) ◽  
pp. 12-25
Author(s):  
Viktoriya Onegina ◽  
Nikolay Megits ◽  
Vitalina Antoshchenkova ◽  
Oleksandr Boblovskyi
Keyword(s):  
Labor Productivity ◽  
Land Reform ◽  
Capital Investment ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Fixed Capital ◽  
Capital Investments ◽  
Agriculture Sector ◽  
Machinery Export ◽  
The U.S

Ukraine's agricultural sector accounts for 17% of the country's GDP and is continuously growing. For six consecutive years (2013-2018), Ukraine harvested over 60 million tons of grain annually, and 2018 export of ag commodities reached $18.6 billion. (State, 2020).  The anticipated land reform envisions lifting the moratorium on the agricultural land sale, which should encourage capital investments in ag.  The article analyzes the trends of investment opportunities in the Ukrainian ag sector for the last decade. The regression analysis of labor productivity with variables of fixed capital-worker ratio and yield of grain confirmed that the function of labor productivity depended on the value of fixed capital per worker.  As the U.S. investment in ag machinery export to Ukraine plays a significant role, we evaluated its effect on the current level of labor productivity in the Ukrainian agribusiness, comparing it with the U.S. farming outcome.

scholarly journals Potential investment to professional sport subjects

2019 ◽  
Vol 16 (1) ◽  
pp. 57-66 ◽  
Author(s):  
Oleg V. Litvishko ◽  
Roman R. Veynberg
Keyword(s):  
Public Relations ◽  
Capital Investment ◽  
Professional Sports ◽  
Growth Potential ◽  
Stock Index ◽  
Sports Clubs ◽  
Football Clubs ◽  
Physical Form ◽  
European Football ◽  
Football Industry

Purpose of the study.The introduction of financial discipline rules by the Union of European Football Associations started a new stage in the development of the football industry. According to the UEFA statistical report in 2017, football clubs for the first time reported a total profit of more than 600 million Euros, while a few years earlier the total losses of clubs representing the highest European football divisions were 1.7 billion Euros. This fact indicates a possible change in the investment attractiveness of sports clubs. The purpose of this study is to assess the presence of the investment potential of the football industry as a possible object of capital investment.Materials and methods.The study analyzed the data obtained from the official statistical sources, including a comparative UEFA report for 2017 on the licensing of clubs “Landscape of European Club Football”, normative legal acts regulating public relations in the field of professional sports, publishing in periodicals and the Internet, illustrating the practice and problems of professional sports development, as well as statistical data from the portals www.stoxx. com and www.investing.com. The study applies such methods of scientific cognition as a method of statistical and economic analysis, comparison, analogies, synthesis, as well as the method of measuring and aggregating data, the graphical and tabular method.Results of the research.When considering the shares of professional sports clubs as objects of capital investment, it is advisable for investors to pay attention to the functional type of assets that such organizations possess and the degree of diversification of their activities. The structure of non-current assets and the share attributable to tangible assets - sports infrastructure and other objects, is an important factor affecting the specific risks inherent in the activities of sports subjects, which allows to compensate losses incurred as a result of not achieving the goal set for the team for the season due to revenues from other activities that affect the investment attractiveness of the club.Conclusion. Based on the results, we can draw the following conclusions. The football industry has significant revenue growth potential. The increase in the financial profitability of professional sports subjects is accompanied by a rise in the stock index quotes, which accumulates the shares of European public football clubs. The comparative analysis carried out in the research indicates the attractiveness of these financial instruments as an investment object. However, such investments are characterized by a high degree of risk due to the specificity inherent in the professional sports industry. From the total number of factors affecting the exchange rate fluctuations of football clubs' shares, one can single out the most significant indicators such as the outcome and significance of the match, the nature of the tournament, and the sports (physical) form of the team.

scholarly journals The Phenomenon of Population Aging: Major Economic Effects (Ending)

2019 ◽  
Vol 14 (3) ◽  
pp. 8-53
Keyword(s):  
Capital Accumulation ◽  
Global Economy ◽  
Capital Investment ◽  
Population Aging ◽  
Capital Intensity ◽  
The Elderly ◽  
Economic Effects ◽  
Economic Consequences ◽  
Long Run ◽  
Pension Age

Today most countries are experiencing fast population aging, which is going to last the entire 21st century. Its economic effects are multifarious and will in large part shape further dynamics of the global economy not only in the short or medium but also in the long run. Unfortunately, Russian economists and politicians are hardly aware of how diverse economic consequences of population aging are since their attention is focused on its narrow, purely pragmatic, dimensions (such as the raising of pension age, the deficit of the Russian Pension Fund etc.). The paper provides a broad overview of major economic effects of population aging from both theoretical and empirical perspectives. It examines the place of aging in the process of demographic transition, and forecasts its expected trends in subsequent decades for a few countries including Russia. Next, it critically reviews different versions of dependency/support ratios: demographic and economic; chronological and prospective; non-adjusted and adjusted for differences by age in labor income and per capita consumption. Special attention is paid to a basic scheme of relationships between key demographic and macroeconomic variables that highlights how population aging might affect employment, labor productivity, capital intensity, wages, returns to capital, investment and savings. Some additional effects are also analyzed, such as prospective changes in labor supply, human capital accumulation, technological change, real interest, and inflation. A general conclusion is that population aging is not per se a fundamental economic challenge that should endanger society’s welfare. Real dangers arise from existing institutions providing support for the elderly, which were established in the early to mid 20th century under completely different demographic and economic conditions.

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