Government Policy, Factor Market Distortion and Structural Transformation

2020 ◽  
Vol 5 (3) ◽  
pp. 101
Author(s):  
Jianfang Liu
Keyword(s):  
Structural Transformation ◽  
Technological Progress ◽  
Service Industry ◽  
Income Elasticity ◽  
Manufacturing Sector ◽  
Factor Price ◽  
Agricultural Labor ◽  
Tax Rate ◽  
The Relationship ◽  
Price Distortions

<p>Demand-driven economic structural transformation is mainly realized through the Engel Effect, and different consumption has different income elasticity. This article attempts to explain the effects of taxation, technological progress and factor price distortions on economic structure by introducing government policies and capital labor price distortions into the multi-sectorial model. The results showed that the share of agricultural labor decrease when the tax rate decreased or technological progress occurred and the share of service labor increased when the non-homothetic of utility function was stronger. Similarly, the distortion of capital and labor factor prices will also affect the structural transformation, and the relationship between the two is opposite. When the distortion of manufacturing sector factor prices increases, the structural transformation will be accelerated. However, the structural transformation slows down as the distortion of factor prices in service industry increases.</p>

scholarly journals A Measure of the Elasticity of Substitution in the Manufacturing Sector of Pakistan

2001 ◽  
Vol 6 (2) ◽  
pp. 43-56
Author(s):  
Rukhsana Kalim
Keyword(s):  
Large Scale ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Elasticity Of Substitution ◽  
Factor Price ◽  
Capital Goods ◽  
Employment Potential ◽  
The Empirical Analysis ◽  
Price Distortions

From a technological perspective, the paper is mainly concerned with finding the employment potential in different groups of industries of Pakistan. The role of factor prices in determining techniques of production in the industrial sector through elasticity of substitution has been analysed. Besides taking the large-scale manufacturing sector as a whole, three broad categories of industries viz., consumer goods, intermediate goods and capital goods industries has been selected in particular for the empirical analysis. By utilising the OLS technique, the cross-section analysis for the year 1995-96 has been made. Our results indicate the there is great potential for employment in the intermediate and capital goods industries provided there are no factor price distortions in the economy.

scholarly journals Corporate Social Responsibility and Financial Performance: Evidence from Manufacturing and Service Industry

2021 ◽  
Vol 10 (3) ◽  
pp. 301
Author(s):  
Raj Bahadur Sharma ◽  
Asha Sharma ◽  
Sajid Ali ◽  
Jyoti Dadhich
Keyword(s):  
Sustainable Development ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Service Sector ◽  
Service Industry ◽  
Manufacturing Sector ◽  
Positive Correlation ◽  
Corporate Social ◽  
The Relationship

Corporate Social Responsibility is the commitment for the equitable and sustainable development of the community. In the growth of society, corporate social responsibility (CSR) has had a huge influence and builds a healthy bond and a strong relationship. The company’s mainly focus on the three level of sustainable development–Environmental Preservation, Financial growth, and Social Development. The present study objective is to examine the impact of CSR on financial performance of selected manufacturing and service sector companies in India. The study also revealed the relationship between CSR score with ROE, ROA, and ROCE.  The study considered financial data of the Indian manufacturing and service industry for the year 2008 to 2017.  Correlation technique had been used to examine the relationship of CSR score and the financial parameters. The result the result shows that ROE, ROA, and ROCE have a negative correlation with CSR Score of Manufacturing Sector Companies. Whereas, ROE has positive correlation with CSR Score of Service Sector Companies together with ROA and ROCE have a strong a positive correlation with CSR Score of Service Sector Companies.  Hence, this result suggests that there is no significant association between CSR Score and Financial Performance of Manufacturing Sector Companies.   Received: 17 February 2021 / Accepted: 9 April 2021 / Published: 10 May 2021

Is Structural Transformation-led Economic Growth Immiserizing or Inclusive? The Case of Indonesia

2019 ◽  
pp. 226-249 ◽  
Author(s):  
Kyunghoon Kim ◽  
Andy Sumner ◽  
Arief Anshory Yusuf
Keyword(s):  
Economic Growth ◽  
Structural Transformation ◽  
Poverty Reduction ◽  
Service Sector ◽  
Manufacturing Sector ◽  
High Growth ◽  
Growth Period ◽  
Current Form ◽  
Poverty And Inequality ◽  
The Relationship

This chapter discusses the relationship between the recent pattern of structural transformation in the Indonesian economy and poverty reduction. In the past two decades, Indonesia has become a service-centred economy while its manufacturing sector has ceased to act as the driver of structural transformation. Further, the manufacturing sector’s capacity to generate employment and to lead productivity growth has deteriorated compared to that during the two decades prior to the Asian financial crisis. Since the late 1990s, Indonesia has also experienced a slowdown in poverty reduction and a rapid increase in inequality. This chapter argues that Indonesia’s economic growth will struggle to be as dynamic as that during the high-growth period if the service sector in its current form continues to lead structural transformation. This is because Indonesia’s service subsectors with large employment absorptive capacity have low productivity compared to the industrial subsectors. Without recovering dynamism in structural transformation, Indonesia’s fight against poverty and inequality is expected to be difficult.

scholarly journals Le progrès, le transfert et le choix technologiques dans les pays en voie de développement (PVD) : vers une approche plus réaliste du problème de la substitution

2009 ◽  
Vol 58 (3) ◽  
pp. 303-322 ◽  
Author(s):  
Eckhard Siggel
Keyword(s):  
Production Function ◽  
Technical Progress ◽  
Technological Progress ◽  
Manufacturing Sector ◽  
Production Functions ◽  
Factor Price ◽  
Technology Choice ◽  
Technology Transfers ◽  
Engineering Information ◽  
Using Data

Abstract In this paper it is argued that the conventional estimation of production functions may be misleading for the study of technological progress and technology choice in developing countries. The analysis of technical progress and technology transfers requires empirical production functions which should reflect accurately the state of technology and productivity in a given country or region. The neoclassical production function embracing as an envelope all observations in an industry is likely to overstate the number of techniques already established in the region. It may therefore underestimate the technical progress achieved by further transfers. The problem lies in the very concept of technological progress which is defined as a shift of the universal production function and excludes movements along the production isoquant. As to the choice of technology the estimation of the elasticity of substitution may be equally misleading for the purpose of predicting changes of factor use caused by factor price changes. The substitution possibilites between factors of production in the actually existing choice set of techniques for a given country or region are better described by the concept of a technology shelf. Two important characteristics of the technology shelf are the range and density of substitution. It is argued that industrial engineering information should be used to better describe the technology shelf. In its empirical part, using data of the manufacturing sector of Zaire, the paper shows how such engineering information may be used to estimate the range and density of substitution.

The number of employed as a macroeconomic indicator of working time dynamics

2020 ◽  
Vol 16 (5) ◽  
pp. 935-945
Author(s):  
I.A. Zaikova
Keyword(s):  
Comparative Analysis ◽  
Manufacturing Sector ◽  
Working Hours ◽  
Working Time ◽  
Labor Costs ◽  
Factors Affecting ◽  
Time Dynamics ◽  
Developed Economies ◽  
The Relationship ◽  
Macroeconomic Indicator

Subject. The working time of workers at any stage of economic development is a value reflecting the level of labor productivity. Any progress in productivity contributes to changes in the volume of labor costs and the number of employed. Depending on the relationship between the total volume of labor costs and the number of employed, the duration of working time per one worker may change (it may increase, decrease, or remain unchanged). Objectives. The study aims to confirm the importance of such a macroeconomic indicator as the number of employed in varying working hours. Methods. The study rests on the comparative analysis of countries with developed economies based on some indicators like dynamics of the working time fund, dynamics of the number of employed, average number of hours worked during the year per employee, etc. The analyzed timespan is 25 years (from 1991 to 2016). Results. The comparative analysis revealed that in the non-production sphere and the economy as a whole the macroeconomic determinants correlate so that the length of working time per worker reduces. When considering the analysis results for the manufacturing sector, no single trend was identified. Conclusions. One of the key factors affecting the change in working hours is the number of employed. The relationship between the working time fund and the number of employed directly determines the dynamics of working time per worker.

Structural Mediation Model of Information System and Sustainable Performance of UAE Manufacturing Sector

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Mohamed Ahmed Darwish Abdulla Larii ◽  
◽  
Fatma Ahmed Lari ◽  
Mohamed Ahmed Darwish Abdulla Lari ◽  
◽  
...  
Keyword(s):  
Information System ◽  
Manufacturing Sector ◽  
Organisational Culture ◽  
The Body ◽  
Mediating Effect ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Mediation Model ◽  
Sustainable Performance ◽  
The Relationship

This study intends to find out the mediating effect of organisational culture on the relationship between information system and sustainable performance of manufacturing sector in UAE. This study used AMOS-SEM software to develop mediation model that linking the mediating relationships between Information System, Organisational Culture and Sustainable operation Performance. Data was collected through questionnaire survey among the operation staff of Abu Dhabi manufacturing companies. A total 250 questionnaires were distributed however 205 were returned and only 200 are valid which indicates a response rate of 80%. The analysis found that TPS has positive but not significant effect to SP; OIS has positive but not significant effect to SP; FMW has a positive and significant effect on SP; SDS has a negative and not significant effect to SP and SP has positive but not significant effect OC. For the path relationship between the four exogenous variables (TPS, OIS, SDS, and FMW) and the mediator variable (OC), the results are TPS has positive and significant effect to OC; OIS has positive but not significant effect to OC; FMW has positive and significant effect to OC and SDS has positive and not significant effect to OC. Collectively, the five exogenous constructs (TPS, OIS, SDS, FMW and OC) explained 89% variation in operational performance and 86% of the variation in organisational culture. However, for a mediator, it was found that OC has no significant mediating effect on the relationship between TPS and SP; OC has no significant mediating effect on the relationship between OIS and SP; OC has no significant mediating effect on the relationship between SDS and SP and OC has no significant mediating effect on the relationship between FMW and SP. it can be concluded that there is a positive relationship between information system dimensions and operational performance. However organizational culture has no contributing any mediating effect to the relationship. These findings have contributed to the body of knowledge and could be shared among the UAE manufacturing practitioners.

Structural Transformation and Inclusive Growth

2018 ◽  
Author(s):  
Andy Sumner
Keyword(s):  
Economic Development ◽  
Structural Transformation ◽  
Inclusive Growth ◽  
Late Capitalism ◽  
Economy Model ◽  
Dual Economy ◽  
Heuristic Device ◽  
The Relationship

This chapter sets out some conceptual points of departure for the book in terms of structural transformation and inclusive growth. It revisits the Lewis model of economic development and proposes it as a heuristic device to connect structural transformation and inclusive growth. The chapter argues first, that both structural transformation and inclusive growth have tended to be defined in a reductionist sense, in a way that disconnects the two concepts. It is contended that this matters because the relationship between structural transformation and inclusive growth is embedded in—rather than separated from—the modality of late capitalism pursued. Second, that the work of pioneering development economist, W. Arthur Lewis and the Lewis dual economy model provides a useful heuristic device for thinking about the relationship between structural transformation and inclusive growth.

scholarly journals Mechanisms of Environmental Regulation’s Impact on Green Technological Progress—Evidence from China’s Manufacturing Sector

2021 ◽  
Vol 13 (4) ◽  
pp. 1600
Author(s):  
Weijiang Liu ◽  
Mingze Du ◽  
Yuxin Bai
Keyword(s):  
Sustainable Development ◽  
Energy Consumption ◽  
Technological Change ◽  
Environmental Protection ◽  
Technological Progress ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
The Sustainable Development ◽  
Biased Technological Change ◽  
Chinese Manufacturing Industry

As the world’s largest developing country, and as the home to many of the world’s factories, China plays a crucial role in the sustainable development of the world economy regarding environmental protection, energy conservation, and emission reduction issues. Based on the data from 2003–2015, this paper examined the green total factor productivity and the technological progress in the Chinese manufacturing industry. A slack-based measure (SBM) Malmquist productivity index was used to measure the bias of technological change (BTC), input-biased technological change (IBTC), and output-biased technological change (OBTC) by decomposing the technological progress. It also investigated the mechanism of environmental regulation, property right structure, enterprise-scale, energy consumption structure, and other factors on China’s technological progress bias. The empirical results showed the following: (1) there was a bias of technological progress in the Chinese manufacturing industry during the research period; (2) although China’s manufacturing industry’s output tended to become greener, it was still characterized by a preference for overall CO2 output; and (3) the impact of environmental regulations on the Chinese manufacturing industry’s technological progress had a significant threshold effect. The flexible control of environmental regulatory strength will benefit the Chinese manufacturing industry’s technological development. (4) R&D investment, export delivery value, and structure of energy consumption significantly contributed to promoting technological progress. This study provides further insight into the sustainable development of China’s manufacturing sector to promote green-biased technological progress and to achieve the dual goal of environmental protection and healthy economic growth.

Sign in / Sign up

Export Citation Format

Share Document