THE NEXUS AMONG EMPLOYMENT, PRODUCTIVITY AND TRADE OPENNESS: EVIDENCE FROM BRICS AND INDONESIA

This paper investigates the nexus among employment, labor productivity and trade openness in Brazil, Russia, India, China, South Africa (BRICS), and Indonesia using annual data (1991–2018). The results suggest a long-run relationship among the variables but only in the agricultural sector of these economies. We also find a unidirectional causality running from employment to productivity in only the agricultural sector. Similarly, trade openness also Granger causes employment. Our final result indicates that trade openness positively influences labor productivity in the long-run. From a policy perspective, it is imperative for BRICS and Indonesia to target employment generation by promoting trade openness.

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THE IMPACT OF RESEARCH AND DEVELOPMENT INVESTMENT ON AGRICULTURAL SECTOR PERFOMANCE IN KENYA

Journal of Agricultural Policy ◽

10.47941/jap.161 ◽

2017 ◽

Vol 2 (1) ◽

pp. 34-57

Author(s):

John Githii Kimani ◽

Dr. George Ruigu Ruigu

Keyword(s):

Research And Development ◽

Agricultural Sector ◽

Research Policy ◽

Trade Openness ◽

Policy And Practice ◽

Long Run ◽

Short Run ◽

The Government ◽

Parsimonious Model ◽

The Impact

Purpose: The purpose of the study was to assess the impact of research and development investment/expenditure on the agricultural sector performance in Kenya.Methodology: The study took the peoples impact assessment direction. The data for this study was collected from various government agencies such as KARI, ASTI, Kenya Agricultural Sector Data compendium website, FAOSTAT, World Bank among others. Co-integration and error correction modeling methods were used in analyzing the data for this study.Results: Co-integration results for both the parsimonious and non-parsimonious model indicated that that there is a long-run relationship among the variables in the agriculture performance in Kenya. Further, findings in this study indicated that the variables under study were insignificant determinants of the long run Total Factor Productivity of the agricultural sector. Meanwhile, Trade openness was the only significant determinant of the short run agricultural Total Factor Productivity.Unique Contribution to Policy and Practice: This study recommends the institutionalization of policies aimed at ensuring interaction between the various stakeholders in the agricultural sectors. This interaction will ensure that resources are better allocated to reduce duplication of research and dissemination activities. In addition, greater collaboration among the stakeholders will promote and strengthen the connection between research, policy and the application of research findings. The study further advocates that the government should follow a trade liberazation oriented approach to the agricultural sector as opposed to a trade tightening approach.

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Agro-industrialisation and financial intermediation in Nigeria

African Journal of Economic and Management Studies ◽

10.1108/ajems-02-2019-0078 ◽

2020 ◽

Vol 11 (3) ◽

pp. 443-456 ◽

Cited By ~ 2

Author(s):

Ngozi Adeleye ◽

Evans Osabuohien ◽

Simplice Asongu

Keyword(s):

Agricultural Sector ◽

Explanatory Power ◽

Value Added ◽

Annual Data ◽

Industrial Output ◽

Industrial Growth ◽

Content Type ◽

Long Run ◽

The Government

PurposeThe study aims to analyse the role of finance in the agro-industrialisation nexus in Nigeria using annual data on manufacturing value added, agricultural value added and volume of finance availed to the agricultural sector from 1981 to 2015.Design/methodology/approachTo establish the presence of a long-run relationship, the error correction model and bounds cointegration techniques are employed. Likewise, the model is augmented to test whether the associated relationship between industrial output and agricultural output depends on access to finance by farmers with the inclusion of an interaction term.FindingsSome salient contributions to the literature are as follows: agriculture and finance are strong and positive predictors of industrialisation in the long run; in the short run, past realisations of industrial output and finance have significant asymmetric effects on industrial output; the explanatory power of agriculture decreases with the growth of the financial system; and the long-run results validate the role of finance in the agro-industrialisation nexus.Originality/valueGiven these findings, achieving growth in the agricultural sector that will induce desired industrialisation should be prioritised by the government through agencies such as the central bank, financial intermediaries and other stakeholders with a view to making agricultural financing a major concern for sustainable domestic consumption and industrial growth.

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Impacts of literacy rate and human development indices on agricultural production in South Africa

Agricultural Economics (Zemědělská ekonomika) ◽

10.17221/35/2013-agricecon ◽

2013 ◽

Vol 59 (No. 11) ◽

pp. 531-536

Author(s):

S. Leshoro ◽

T.L.A. Leshoro

Keyword(s):

South Africa ◽

Human Development ◽

Agricultural Production ◽

Agricultural Sector ◽

Labour Force ◽

Small Scale ◽

Literacy Rate ◽

Distributed Lag ◽

Long Run ◽

The Impact

Agriculture is an important sector in South Africa, and the impact that education and human development would have made in this sector via non-white small scale farming was limited through biased policies of the apartheid era. Due to apartheid laws, South Africa found itself with high levels of unskilled labour force. This study seeks to find the impacts of literacy rate and human development indices on agricultural production using Auto Regressive Distributed Lag (ARDL) Bounds Test approach to co-integration. A long run relationship among the variables, agricultural production (agriculture GDP), literacy rate and human development indices were found. Literacy rate has a positively significant effect on agricultural production in the long run while Human Development Index has a positive and significant impact in the short run. This indicates that the apartheid regime fell short in recognizing the positive effect of education in the agricultural sector by denying a descent education to the majority of non-whites which were farm labourers or small scale farmers. This study provides some policy recommendations.  

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Sectoral Investment and Employment Generation in Pakistan: An Econometric Analysis

Review of Economics and Development Studies ◽

10.26710/reads.v4i2.410 ◽

2018 ◽

Vol 4 (2) ◽

pp. 261-270

Author(s):

Furrukh Bashir ◽

Hafeez ur Rehman ◽

Rashid Ahmad ◽

Ismat Nasim

Keyword(s):

Time Series Data ◽

Trade Openness ◽

Percent Level ◽

Series Data ◽

Distributed Lag ◽

Distributed Lag Model ◽

Long Run ◽

Augmented Dickey Fuller ◽

Lag Model ◽

Employment Generation

This study is projected at investigating the influence of Sectoral Investment on Employment Generation. For this purpose, time series data is collected from Pakistan over the period from 1972 to 2017. Augmented Dickey fuller test reveals that few variables considered in the study are stationary at level and few at first difference. So, econometric results are estimated using autoregressive and distributed lag model for long run elasticities. Long run co-integrating relationship is established at 2.5 percent level using ARDL bound testing approach. ARDL long run results concludes that Agricultural Investment, Industrial Investment, Services Sector Investment and Trade openness are increasing employment while inflation and tax revenue are seemed to be negatively related with employment of Pakistan in the long run.

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Is the Compensation Hypothesis Valid for Turkey?

International Conference on Eurasian Economies 2015 ◽

10.36880/c06.01380 ◽

2015 ◽

Author(s):

Murat Can Genç ◽

Osman Murat Telatar

Keyword(s):

Trade Openness ◽

Government Expenditure ◽

The Other ◽

Cointegration Test ◽

Government Size ◽

Annual Data ◽

Correction Model ◽

Long Run ◽

The Government ◽

Compensation Hypothesis

Increases of trade openness in an economy raise the external risks in globalization. The societies demand on increases of the government expenditure in order to compensate for their risks. Hence the more trade openness may cause the more government size. This relation is named as compensation hypothesis in the literature has been comprehensively discussed by Rodrik (1998) but started by Cameron (1978). This paper attempts to analyze the cointegration and causality relationships between trade openness and government size in Turkey, utilizing annual data for the period 1980–2013. The existence of the long run relationship between trade openness and government size is investigated by applying Engle and Granger (1987) cointegration test. The empirical findings of cointegration test stated that the series are cointegrated. On the other hand the results of error correction model indicate that there is a unidirectional causality from trade openness to government size. The significance of this results state that the compensation hypothesis is valid for Turkey.

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Foreign Direct Investment and Trade Components in Context of Pakistan

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n34p384 ◽

2016 ◽

Vol 12 (34) ◽

pp. 384 ◽

Cited By ~ 1

Author(s):

Muhammad Akram Gilal ◽

Khadim Hussain ◽

Muhammad Ajmair ◽

Sabahat Akram

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Annual Data ◽

Investment Liberalization ◽

Long Run ◽

Short Run ◽

The Impact

Objective of this paper was to evaluate the impact of foreign direct investment (FDI) on trade components (exports and imports) of Pakistan using annual data from 1975 to 2013. Engle and Granger two step cointegration method was used for conducting the analysis. This method was adopted because all the variables of interest were non stationary in level and stationary at first difference. Results provide evidence of long run cointegrating relationship as well as short run relationship between FDI and trade components. A rise in FDI causes both exports and imports to increase. Based on these empirical findings, we strongly recommend Government of Pakistan to focus on the strategy of investment liberalization as well as trade openness.

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Impact of Terrorism on Foreign Portfolio Investment in Pakistan

Jinnah Business Review ◽

10.53369/lxnn9109 ◽

2015 ◽

Vol 03 (02) ◽

pp. 68-74

Author(s):

Irfan Ullah ◽

◽

Muhammad Bilal Saeed

Keyword(s):

Trade Openness ◽

Unit Root Test ◽

Annual Data ◽

Portfolio Investment ◽

Short Term ◽

Foreign Portfolio Investment ◽

Long Run ◽

Negative Effect ◽

Short Run ◽

Push And Pull

This study explored the long and short run impact of Terrorism on Foreign Portfolio Investment (FPI) in Pakistan using annual data from 1995 to 2013. The stationarity of data is analyzed by using unit root test. The long run relationship is captured using Johansen and Juselius Cointegration test. The short term impact was tested through Vector Error Correction Model. The results reveal significant negative effect of Terrorism on FPI. The results best fit the concept of push and pull theory. The relation of FPI and market size is negative, and highly positive with Trade Openness and Real Interest Rate. There is also significant short term relationship between Terrorism and FPI. This study suggests that careful policies should be implemented for the purpose of minimizing terrorist activities in order to enhance FPI in Pakistan.

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ECONOMETRIC MODELLING OF THE CONSUMPTION OF ELECTRICITY IN GHANA WHEN STRUCTURAL BREAKS EXIST

Journal of Economic Info ◽

10.31580/jei.v7i3.1612 ◽

2020 ◽

Vol 7 (3) ◽

pp. 205-220

Author(s):

Samuel Asuamah Yeboah

Keyword(s):

Structural Breaks ◽

Trade Openness ◽

Electricity Consumption ◽

Annual Data ◽

Explanatory Variables ◽

Long Run ◽

Development Indicator ◽

Short Run ◽

World Development Indicator ◽

World Development

The research modelled electricity consumption for Ghana using annual data for the period 1971-2011, obtained from world development indicator. The research adopts the Gregory and Hansen model of cointegration for the estimation in the presence of structural breaks. The results reveal stable short run and long-run relationships among the explanatory variables and electricity consumption. The findings suggest that financial development explain electricity consumption in Ghana both in the short run and in the long run. The other variables (trade openness, price, and income) in the estimated model do not significantly explain electricity consumption. Therefore, they are not reliable policy variables in managing electricity consumption.

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Financial development and income inequality in India: an application of ARDL approach

International Journal of Social Economics ◽

10.1108/ijse-09-2013-0208 ◽

2015 ◽

Vol 42 (1) ◽

pp. 64-81 ◽

Cited By ~ 16

Author(s):

Madhu Sehrawat ◽

A K Giri

Keyword(s):

Income Inequality ◽

Financial Development ◽

Trade Openness ◽

Development Economic ◽

Annual Data ◽

Content Type ◽

Long Run ◽

Integration Test ◽

Short Run ◽

The Relationship

Purpose – The purpose of this paper is to examine the relationship between financial development and income inequality in India using annual data from 1982-2012. Design/methodology/approach – Stationarity properties of the series are checked by using ADF, DF-GLS, KPSS and Ng- Perron unit root tests. The paper applied the auto regressive distributed lag (ARDL) bound testing approach to co-integration to examine the existence of long run relationship; and error correction mechanism for the short run dynamics. Findings – The co-integration test confirms a long run relationship between financial development and income inequality for India. The ARDL test results suggest that financial development, economic growth, inflation aggravates the income inequality in both long run and short run. However, trade openness reduces the gap between rich and poor in India. Research limitations/implications – The present recommend for appropriate economic and financial reforms focussing on financial inclusion to reduce income inequality in India. Originality/value – Till date, there is hardly any study that makes a clear comparison between market-based indicator and bank based indicator of financial development in India and those examining the relationship between finance and income inequality nexus. Further there is hardly any study to include gini coefficient as a proxy for inequality for India and apply ARDL techniques of co-integration, using the basic principles of GJ hypothesis and provide short run and long run dynamics for India. So the contribution of the paper is to fill these research gaps.

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Determinants of External Debt in Jordan: An Empirical Study (1990–2014)

International Business Research ◽

10.5539/ibr.v9n7p116 ◽

2016 ◽

Vol 9 (7) ◽

pp. 116 ◽

Cited By ~ 4

Author(s):

Torki M. Al-Fawwaz

Keyword(s):

Exchange Rate ◽

Empirical Study ◽

Gross Domestic Product ◽

Trade Openness ◽

External Debt ◽

Domestic Product ◽

Annual Data ◽

Independent Variables ◽

Long Run ◽

Per Capita

This study aimed at investigating the major determinants influencing the external debt in Jordan during the period (1990-2014).To achieve this goal, annual data has been used during the period study, through applying ARDL model which consist of the dependent (external debt) and independent variables (trade openness, term of trade, exchange rate, and gross domestic product per capita).The study reviled that there is a positive statistically significant effect trade variable on the external debt in the long run, and a negative statistically significant effect for the gross domestic product per capita variable (GDPpc) on the external debt.The study recommended that it is very important to depend on the available recourses in trading rather that depend on external debt.

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