scholarly journals Accelerating Economic Recovery Post-Covid19 through Strengthening Priority Sectors in ASEAN+6 Countries: A Generalized Method of Moment (GMM) Approach

2021 ◽  
Vol 39 (12) ◽  
Author(s):  
Setyo Tri Wahyudi ◽  
Kartika Sari ◽  
Rihana Sofie Nabella
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Value Added ◽  
Industrial Sector ◽  
The Philippines ◽  
Economic Recovery ◽  
Method Of Moment ◽  
Industrial Sectors ◽  
Generalized Method Of Moment ◽  
Two Sectors

The Covid-19 pandemic has undermined the achievements of economic growth in various countries, including in the Southeast Asia region. The characteristics of the Southeast Asian region, which are based on the agricultural and industrial sectors, have become the foundation for economic recovery efforts. Therefore, this study chose the agricultural and industrial sectors as the database of research. Further, this study aims to analyze the influence of the agricultural sector and the industrial sector on economic growth in ASEAN+6, covering Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Singapore. In this study, secondary data will be used for the period from 1991 to 2020 and the sources is from the official website of the World Bank by taking world development indicator data with the Generalized Method of Moment (GMM) method. It was found that the share of value-added in the agricultural sector and the industrial sector in the ASEAN+6 has a significant contribution to economic recovery efforts in the region. The increase in these two sectors has shown a real impact on accelerating economic recovery through increased production activity. The findings of this study are expected to be a reference for policies to increase output in the two sectors, encourage economic growth, and accelerate economic recovery in each country.

scholarly journals The Influence of Economic Transformation From The Agricultural Sector To The Industrial Sector To Economic Growth In Indonesia

2018 ◽  
Vol 1 (1) ◽  
pp. 6-11
Author(s):  
Abdulrahman Taresh Abdullah ◽  
Mohammad Wasil
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Industrial Sector ◽  
Economic Transformation ◽  
Series Data ◽  
Correction Model ◽  
Vector Error Correction ◽  
Industrial Sectors ◽  
Vector Error

The purpose of this research is the research and development of the industrial sector's economy to the agricultural sector, as well as the influence of agricultural and industrial sectors on economic growth in Indonesia. The data used is time series data, 1960-2015. The method used in this research is Vector Error Correction Model (VECM). From the estimation results, it is concluded that the economic growth rate and the industrial sector negatively affect the agricultural sector, it can be said that the increasing economic growth achieved in Indonesia has increased the industrial sector and lower the agricultural sector. While the results of research that the agricultural sector negatively affect the economic growth while the industrial sector positively affects economic growth, in the sense that the agricultural sector has a bad contribution in economic growth in Indonesia.

Relative Price Changes and Industrialization in Pakistan: 1951-1964

1966 ◽  
Vol 6 (3) ◽  
pp. 408-431 ◽  
Author(s):  
Stephen R. Lewis, Jr. ◽  
S. Mushtaq Hussain
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Terms Of Trade ◽  
Relative Price ◽  
Industrial Sectors ◽  
Two Sectors ◽  
Distribution Of Income

The terms of trade between the agricultural and industrial sectors in developing countries have received considerable attention in the general literature on economic development. The terms of trade are important determinants of the distribution of income between the two sectors, as well as the capacity for saving (particularly in the manufacturing sector) and incentives to produce and sell (particularly in the agricultural sector). In Pakistan, the terms of trade of the agricultural sector are alleged to have been depressed to benefit the growth of industrial sector. Considerable opposition to increased taxation of the agricul¬tural sector has been based on the assertion that that sector is already "taxed" for the benefit of the industrial sector through the terms of trade. Current official interpretation [11] of the "saving strategy" that the country followed in the 1950's indicates that the terms of trade were important in transferring income from the low-saving sector (agriculture) to the high-saving sector (manufac¬turing). As yet, however, there had been no empirical study of the facts of the Pakistan experience.

scholarly journals The National Banking Crisis in Applied Early Warning System (EWS)

2018 ◽  
Vol 1 (1) ◽  
pp. 37-45
Author(s):  
Nadia Sasri W
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Warning System ◽  
Industrial Sector ◽  
Series Data ◽  
Correction Model ◽  
Vector Error Correction ◽  
Industrial Sectors ◽  
Vector Error

The purpose of this research is the research and development of the industrial sector's economy to the agricultural sector, as well as the influence of agricultural and industrial sectors on economic growth in Indonesia. The data used is time series data, 1960-2015. The method used in this research is Vector Error Correction Model (VECM). From the estimation results, it is concluded that the economic growth rate and the industrial sector negatively affect the agricultural sector, it can be said that the increasing economic growth achieved in Indonesia has increased the industrial sector and lower the agricultural sector. While the results of research that the agricultural sector negatively affect the economic growth while the industrial sector positively affects economic growth, in the sense that the agricultural sector has a bad contribution in economic growth in Indonesia.

scholarly journals Econometric Analysis of Dutch Disease Implication of China-Africa Trade

2021 ◽  
Vol 7 (1) ◽  
pp. 13-30
Author(s):  
Tirimisiyu F Oloko ◽  
Muritala O Ogunsiji ◽  
Musefiu A Adeleke
Keyword(s):  
Agricultural Sector ◽  
Value Added ◽  
Mineral Resources ◽  
Econometric Analysis ◽  
Dutch Disease ◽  
Method Of Moment ◽  
African Countries ◽  
Trade Relationship ◽  
Econometric Analyses ◽  
Generalized Method Of Moment

This study revisits the analysis of the Dutch disease implication of China-Africa trade for Africa’s non-mineral resources sectors; specifically, manufacturing and agricultural sectors, while focusing on the trade relationship between China and 27 African countries for the period of 19years, 2001 to 2019. This prompted an econometric analysis with the use of two-step dynamic (difference and system) panel Generalized Method of Moment (GMM) models, which was also complemented with dynamic least squares panel econometric regression. The preliminary analysis revealed that Ethiopia is the largest African trading partner with China, with an average of about 21percent China-Ethiopia trade ratio, while Botswana has the least trade relation with China, with 1.5percent Botswana-China trade ratio. The result of our econometric analyses suggests that higher China-Africa trade has the potential to reduce Africa’s manufacturing value-added. In other words, China-Africa trade is not causing Dutch disease in Africa but has the potential to cause Dutch disease in the future. Furthermore, the result suggests that higher China-Africa trade has the potential to increase Africa’s agricultural sector productivity. This implies that China-Africa trade has no tendency of causing Dutch disease in the agricultural sector. Our results are robust to different data structures for the dynamic GMM model.

On Capital Allocation And The Real Cost Of Labour (Notes & Comments)

1970 ◽  
Vol 10 (4) ◽  
pp. 491-499
Author(s):  
F. E. Banks
Keyword(s):  
Agricultural Sector ◽  
Wage Differential ◽  
Industrial Sector ◽  
Capital Allocation ◽  
Marginal Product ◽  
Developing Economy ◽  
Real Cost ◽  
The Difference ◽  
Industrial Wage ◽  
Two Sectors

This note is an extension of several contributions to the problem of re¬source allocation in a developing economy. In separate papers, I.M.D. Little and F. Seton* have introduced a model in which labour in a developing economy cannot be shifted from the subsistence to the industrial sector at zero opportunity cost, even though this labour displays zero marginal product in its 'traditional' occupations; and in what follows this problem will be attacked via a diagramma¬tic analysis. A short appendix will treat a side issue of the topic. As Little presented the model, there was an initial amount of capital K to be divided between two sectors, the I (industrial) sector, and the C (subsistence, traditional, or agricultural) sector. In the C-sector, there is excess labour or dis¬guised unemployment, in the sense of Professor W. A. Lewis2, in that the marginal product of labour in this sector is taken as equal to zero. As it happens, however, this labour cannot be moved to the I-Sector without an increase in production in the C-sector. The reason for this is because as labour is transferred to the industrial sector, consumption per head increases in the C-sector, thus decreasing the surplus available for workers being transferred to the I-sector. The transfer can only be carried out if a surplus equal to the difference between the industrial wage in C-goods and the amount of C-goods 'released' by the C-sector is forth¬coming, and for this an increased production of C-goods (via the input of capital into the C-sector) must take place. A similar situation would exist if transferring workers required a wage differential; or if C-goods had to be exported to obtain certain types of capital goods for the labour being reallocated, and/or housing, training, etc.

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 Protectivity Versus Productivity And Economic Growth: Empirical Evidence From Selected Countries

2011 ◽  
Vol 7 (10) ◽  
Author(s):  
Hamid Shahrestani ◽  
Nahid Kalbasi Anaraki
Keyword(s):  
Economic Growth ◽  
Good Governance ◽  
Country Risk ◽  
Method Of Moment ◽  
Cross Section Data ◽  
Factor Productivity ◽  
Macroeconomic Variables ◽  
Section Data ◽  
Generalized Method Of Moment ◽  
Country Specific

This paper tries to cast light on the effects of terrorism on some macroeconomic variables at the international level. Using the Generalized Method of Moment (GMM) we investigate the effects of terrorism on such variables as GDP growth, foreign direct investment (FDI) and total factor productivity (TFP) with cross section data of 2005 for a sample of both developed and developing countries. The results suggest that terrorism has adversely and significantly affected economic growth, FDI and TFP around the world. In line with Abadie and Gardeazabal (2007) we find that once the effects of other country-specific characteristics such as country risk, good governance, and restrictions on FDI are taken into account these results are still robust.

scholarly journals Tracing the Labor Absorption Rate in the Medium and Large Industrial Sectors

2020 ◽  
Vol 7 (2) ◽  
pp. 220
Author(s):  
Sitti Aisyah ◽  
Sulastri Sulastri
Keyword(s):  
Economic Growth ◽  
Minimum Wage ◽  
Absorption Rate ◽  
Industrial Sector ◽  
High Rate ◽  
Series Data ◽  
Business Units ◽  
South Sulawesi ◽  
Industrial Sectors ◽  
The Government

The high rate of population growth and the workforce raises the problem of job opportunities, because it involves various aspects both economic and non-economic. At the same time as massive industrialization, it is not automatically able to create adequate work. This study aims to analyze and determine the effect of the number of business units, the provincial minimum wage, and economic growth on the rate of labor absorption in the medium and large industrial sectors in South Sulawesi in the period 2010-2019. This research is expected to be one of the benchmarks for the government and private sector in paying attention to the absorption rate of labor in the industrial sector in South Sulawesi. The type of research used in this research is quantitative. The type of data used in this study is secondary data. The data used in this study are time series data in the years 2010-2019. The results of this study indicate that (1) the number of business units has a positive and significant effect on the rate of employment in the industrial sector in the province of South Sulawesi, (2) the provincial minimum wage has a negative and significant effect on the rate of employment in the medium and large industrial sector in South Sulawesi, (3) economic growth has a significant effect in a negative direction on employment in the medium and large industrial sectors in South Sulawesi. The government should design an industrialization policy direction that should be more inclusive, the incoming investment should be based on empowering local workers, reducing unemployment, creating more expansive employment opportunities and synergizing local economic development.Keywords: Economic Growth; Industry; Labor; Wages.

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.

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