Research Insights: Can Better Infrastructure Offset the Negative Impacts That COVID-19 Has Had on Productivity in Different Economic Sectors?

2021 ◽  
Author(s):  
Hildegart Ahumada ◽  
Eduardo A. Cavallo ◽  
Santos Espina-Mairal ◽  
Fernando Navajas
Keyword(s):  
Latin America ◽  
Labor Productivity ◽  
Economic Sectors ◽  
Social Distancing ◽  
Productivity Losses ◽  
Negative Impacts ◽  
Indirect Impacts

The effects of COVID-19 have been stronger in service-related subsectors, where supply and/or demand were constrained by lockdowns and social distancing measures. The losses in these subsectors have had direct impacts-through their weight in countries GDP-and indirect impacts through their effect on other sectors. In Latin America, effects on the three most affected sectors-wholesale, retail, and hospitality services; construction; and manufacturing-add up to a 4.9 percent hit to economy-wide labor productivity through direct and indirect channels. Large productivity improvements in infrastructure may be needed to fully compensate for the negative productivity losses traceable to COVID-19.

scholarly journals Sectoral Productivity Growth, COVID-19 Shocks, and Infrastructure

2021 ◽  
Author(s):  
Hildegart Ahumada ◽  
Eduardo A. Cavallo ◽  
Santos Espina-Mairal ◽  
Fernando Navajas
Keyword(s):  
Latin America ◽  
Labor Productivity ◽  
Historical Data ◽  
Productivity Shocks ◽  
Productivity Losses ◽  
Long Run ◽  
Sectoral Productivity ◽  
The Caribbean ◽  
Panel Vector Autoregression ◽  
Productivity Gains

This paper examines sectoral productivity shocks of the COVID-19 pandemic, their aggregate impact, and the possible compensatory effects of improving productivity in infrastructure-related sectors. We employ the KLEMS annual dataset for a group of OECD and Latin America and the Caribbean countries, complemented with high-frequency data for 2020. First, we estimate a panel vector autoregression of growth rates in sector level labor productivity to specify the nature and size of sectoral shocks using the historical data. We then run impulse-response simulations of one standard deviation shocks in the sectors that were most affected by COVID 19. We estimate that the pandemic cut economy-wide labor productivity by 4.9 percent in Latin America, and by 3.5 percent for the entire sample. Finally, by modeling the long-run relationship between productivity shocks in the sectors most affected by COVID 19, we find that large productivity improvements in infrastructure--equivalent to at least three times the historical rates of productivity gains--may be needed to fully compensate for the negative productivity losses traceable to COVID 19.

Climate Change Impacts on Agriculture in Latin America and the Caribbean: An Application of the Integrated Economic-Environmental Modeling (IEEM) Platform

2021 ◽  
Author(s):  
Onil Banerjee ◽  
Martin Cicowiez ◽  
Ana Rios ◽  
Cicero De Lima
Keyword(s):  
Climate Change ◽  
Labor Productivity ◽  
Latin American ◽  
Climate Change Impacts ◽  
Crop Productivity ◽  
Environmental Modeling ◽  
Sectoral Output ◽  
The Caribbean ◽  
Negative Impacts ◽  
Agricultural Yields

In this paper, we assess the economy-wide impact of Climate Change (CC) on agriculture and food security in 20 Latin American and the Caribbean (LAC) countries. Specifically, we focus on the following three channels through which CC may affect agricultural and non-agricultural production: (i) agricultural yields; (ii) labor productivity in agriculture, and; (iii) economy-wide labor productivity. We implement the analysis using the Integrated Economic-Environmental Model (IEEM) and databases for 20 LAC available through the OPEN IEEM Platform. Our analysis identifies those countries most affected according to key indicators including Gross Domestic Product (GDP), international commerce, sectoral output, poverty, and emissions. Most countries experience negative impacts on GDP, with the exception of the major soybean producing countries, namely, Brazil, Argentina and Uruguay. We find that CC-induced crop productivity and labor productivity changes affect countries differently. The combined impact, however, indicates that Belize, Nicaragua, Guatemala and Paraguay would fare the worst. Early identification of these hardest hit countries can enable policy makers pre-empting these effects and beginning the design of adaptation strategies early on. In terms of greenhouse gas emissions, only Argentina, Chile and Uruguay would experience small increases in emissions.

scholarly journals Key Sectors in the Economy of Saudi Arabia

2021 ◽  
Vol 9 ◽  
Author(s):  
Said K. M. Brika ◽  
Brahim Adli ◽  
Khalil Chergui
Keyword(s):  
Economic Policy ◽  
Saudi Arabia ◽  
Pharmaceutical Products ◽  
Economic Sectors ◽  
Kingdom Of Saudi Arabia ◽  
A Value ◽  
Key Sectors ◽  
Indirect Impacts ◽  
And Storage ◽  
Effective Analysis

This study shows the key sector for the economy of Saudi Arabia based on input-output model analyses. They derived the analyses from the economy of the Kingdom of Saudi Arabia (KSA) using 35 economic sectors. We found that four leading sectors exceeded the values of the linkage coefficients with a value of 1, represented by both chemicals and pharmaceutical products, namely, manufacturing basic metals (S13), transportation and storage (S24), and other business sector services (S31). According to the unbalanced growth theory, more attention is paid to these sectors that are the primary engine for the rest of the sectors and their growth. The results obtained are beneficial for success of the economic policy of Saudi Arabia. By observing the different influences, it is possible to identify the policies expected to have more significant indirect impacts on other sectors in Saudi Arabia and are likely to develop a prudent economic policy. Given the economic dependence on oil, it is also essential to be acquainted with the different sectors that are probable to have an overall effect on the economy for strategic and operationally effective analysis that can help.

scholarly journals BUDAYA BAHARI DAM TRADISI NELAYAN DI INDONESIA

2017 ◽  
Vol 1 (1) ◽  
pp. 22
Author(s):  
Yunandar Yunandar
Keyword(s):  
Government Policy ◽  
Global Market ◽  
Economic Prosperity ◽  
Economic Sectors ◽  
Community Based ◽  
Internal Factors ◽  
Maritime Culture ◽  
Negative Impacts ◽  
External Forces ◽  
The Relationship

There are at least five phenomena which mark the complexity of maritime culture and fisherman tradition in Indonesia; social group of the maritime society, the development of economic sectors concerning sea products, social hierarchy in the daily maritime activities, the relationship between the elements of maritime culture and life sectors of the society, and the continuation and alteration of maritime culture's elements. In order to acquire a deep study on the complexity of maritime culture, there are several concepts used in this paper: Koentjaraningrat's concept of "three forms of culture", Sanjek's concept of "the dynamic culture and creation", and Vadya's concept of "contextual progressive explanatory method". The forms of maritime culture include the system of culture, belief, institution, and production technology. Meanwhile, the dynamics of maritime culture and fisherman tradition is determined not only by the internal factors but also the external forces, such as, innovation on technology, government policy, university interventions, nongovernmental organizations, donor institution, and regional, national, and even global market. Apparently, those external forces have brought negative impacts on the life of maritime society, marked by the decrease of economic prosperity, natural resources and sea environment. The negative impacts can be avoided by applying community-based management in the development of maritime culture

Cuba and Integration Processes in Latin America and the Caribbean

2019 ◽  
Author(s):  
Carlos Oliva Campos ◽  
Gary Prevost
Keyword(s):  
Latin America ◽  
Latin American ◽  
Regional Integration ◽  
Jose Marti ◽  
Eastern European ◽  
Post Cold War ◽  
Simon Bolivar ◽  
Cuban Government ◽  
The Caribbean ◽  
Negative Impacts

The uniting core of all the Cuban revolutionary government’s unfolding politics toward Latin American and Caribbean countries has been based on three foundational tenets: the staunch defense of a unified perspective that spans national to regional; the recovery of the historic principles of regional integration defended by Simón Bolívar and José Martí, and the unalterable anti-imperialist position of its international relations. Unlike the enormous negative impacts that the demise of the Union of Soviet Socialist Republics (USSR) and Eastern-European socialism caused Cuba, the new political and geo-economic scene of the post–Cold War turned out to be very favorable for a Cuban government that shifted to redefine its relationships with Latin America and the Caribbean. This was strengthened by the victory of progressive and leftist governments in influential countries such as Brazil, Argentina, and Venezuela. The new regional circumstances have been the most propitious for the development of the integrationist vision historically supported by the Cuban Revolution.

Reducing Labor Productivity Losses through a Productivity Stratification Indicator

2021 ◽  
Vol 27 (1) ◽  
pp. 04020044
Author(s):  
Luis Otávio Cocito de Araújo ◽  
Carlos Caldas ◽  
Vivian Wing-Yan Tam
Keyword(s):  
Labor Productivity ◽  
Productivity Losses

Latin America political inequality is set to increase

2018 ◽  
Keyword(s):  
Latin America ◽  
Political Influence ◽  
Economic Policies ◽  
Negative Consequences ◽  
Economic Management ◽  
Economic Sectors ◽  
Weak State ◽  
Content Type ◽  
Education Innovation ◽  
Economic Elites

Subject Elites and political influence. Significance Economic elites have historically exerted significant political influence across Latin America. Control over key economic resources such as land, together with weak state institutions, gave them opportunities to shape most economic policies. Their excessive power has had negative consequences on education, innovation and economic management. Impacts Business groups will continue to shift their political strategies to adapt to new conditions. The business focus on traditional economic sectors will militate against innovation. Business demands for tax reductions may complicate fiscal retrenchment by more rightist administrations.

Labor Productivity And Social Policy In Latin America

2017 ◽  
Vol 51 (2) ◽  
pp. 85-104
Author(s):  
Luis Rene Caceres ◽  
Susan Caceres
Keyword(s):  
Latin America ◽  
Social Policy ◽  
Labor Productivity
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