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.

scholarly journals Evaluación económica del sector agropecuario e industrial en Ecuador 1980 – 2015

ECA Sinergia ◽  
2019 ◽  
Vol 10 (2) ◽  
pp. 116
Author(s):  
Dayanara María García Valarezo ◽  
Nervo Jonpiere Apolo Vivanco ◽  
Javier Alejandro Bermeo Pacheco
Keyword(s):  
Agricultural Sector ◽  
Industrial Sector ◽  
Evaluación Económica ◽  
Detailed Data ◽  
Endogenous Factors ◽  
Palabras Clave ◽  
International Prices ◽  
Data Statistics ◽  
High Yields ◽  
Two Sectors

La economía de Ecuador se sustenta principalmente en el sector primario a pesar que en los últimos años se ha tratado de dar un giro a través del cambio de la matriz productiva, pero los resultados aún no tienen el impacto deseado. El sector agropecuario e industrial son dos elementos importantes en la economía ecuatoriana, ya que se correlacionan de manera positiva, aunque su crecimiento es irregular, a lo largo de los años en el Ecuador se han implementado un sin número de políticas direccionadas a los dos sectores buscando de una u otra manera su desarrollo, las altas producciones de los sectores antes mencionados se debe en gran medida por las exportaciones y los altos precios internacionales, sin embargo han existido periodos donde estos sectores se han visto afectados debido a factores endógenos, exógenos y en otros casos a malas administraciones, bajo este contexto, el presente estudio tiene como objetivo analizar la evolución de los dos sectores representativos en el país como es el agropecuario e industrial a partir del año 1980 hasta 2015, se utilizó el método cuantitativo el cual permite a través de datos detallados, estadísticas y en conjunto con principios teóricos alcanzar las metas planteadas, dando así como resultado final que el sector industrial ha sido a lo largo de los años sumergido a una mayor prioridad y demostrando así que ha sido el que mayor ingresos brinda al país.   Palabras clave: sector agropecuario, sector industrial, factores exógenos y endógenos.   ABSTRACT   The economy of Ecuador is based mainly in the primary sector despite the fact that in recent years it has tried to make a turn through the change of the productive matrix, but the results do not yet have the desired impact. Agriculture and industry are two important elements in the Ecuadorian economy, since they correlate positively, although its growth is irregular, over the years in the Ecuador have implemented a number of policies targeted to the two sectors looking for one way or another its development, the high yields of the above-mentioned sectors is largely by exports and high international prices, however there have been periods where these sectors have been affected due to endogenous factors, exogenous and in other cases to bad administrations, in this context, this study aims to analyze the evolution of the two sectors that represent the country as it is the agricultural and industrial from the year 1980 until 2015, using the quantitative method which allows through detailed data, statistics and in conjunction with theoretical principles the goals raised, giving as well as end result than the industrial sector has been over the years submerged to a higher priority and showing that has been the major income provides to the country.   Key words: agricultural sector, industrial sector, exogenous and endogenous factors.

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 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.

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.

STRATEGIC PROSPECTS FOR INNOVATION DEVELOPMENT OF AGRICULTURAL SECTOR OF CHERKASY REGION

2017 ◽  
Author(s):  
Viktoriia Zhmudenko ◽  
◽  
Mykola Diachenko ◽  
Keyword(s):  
Development Strategy ◽  
Agricultural Sector ◽  
Raw Materials ◽  
Industrial Sector ◽  
State Regulation ◽  
Innovative Activity ◽  
Innovative Development ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Effective Development

The article analyzes the current state of production activities of the agricultural sector of Cherkasy region economy, its organizational and legal structures and identifies strategic directions for its development. It is proved that the priority solution of urgent problems, such as: redistribution of land and property; restructuring of enterprises and forms of management; development of cooperation; introduction of market management methods - management and marketing; state regulation of the agricultural economy, financial, credit and tax systems; development of markets for agricultural products, material and technical resources and services; intensification and diversification of foreign economic activity will contribute to the development of the agro-industrial sphere of Cherkasy region. It is determined that the years 2021-2027 should be considered the strategic period, during which the provision of the country's population with food at the level of scientifically sound standards, growth of export potential and reduction of imports should be achieved. The necessity of introduction of innovative activity and process of innovations introduction in the production activity of the agricultural enterprises which are a basis of economic growth is proved. Obstacles to the innovative development of the regional agricultural sector are analyzed. The priority directions of innovative development of agro-industrial enterprises are indicated. The need to develop an innovative policy of agricultural enterprises in order to increase the efficiency of their operation is determined. It is noted that the priority of the agro-industrial sector development of Cherkasy region and its leading industries will provide the population with food products, industry with raw materials, and foreign trade with the export goods. It is established that innovative activity in agricultural enterprises is a decisive factor in the effective development and increase of agricultural production, significant changes in its structure, reassessment of the motivation system that meet the current principles of the Cherkasy Region Development Strategy for 2021-2027, which determines key vectors of the region in the long-term.

Revisiting the relationship between art and industry in nineteenth-century Britain from the manufacturer’s perspective

2021 ◽  
Vol 30 (1) ◽  
pp. 31-52
Author(s):  
Ann Compton
Keyword(s):  
Nineteenth Century ◽  
Industrial Sector ◽  
Critical Discourse ◽  
Drawing Board ◽  
Public Exposure ◽  
Production Practices ◽  
The Aesthetic ◽  
The Relationship ◽  
Two Sectors

The mid-nineteenth century critical discourse compartmentalized art and industry by crediting each with specific powers. Manufacturing was identified with the development of technologically advanced processes, materials and products, while fine artists were given authority over the aesthetic aspects of industrial design. The idea that the two sectors had separate areas of responsibility has proved extremely enduring, and continues to influence our perceptions of Victorian manufacturing. This article contributes to the wider task of re-evaluating the relationship between art and industry in nineteenth-century Britain by examining the role of design in potteries and art metalworking firms from the manufacturer’s perspective. It shows that contrary to the picture painted by Victorian critics, design was central to the ambitions and commercial operations of manufacturing businesses. Crucially, decisions about the recruitment of design staff were shaped by the close connection between the creation of new products at the drawing board, and their fabrication in the workshop. Since each branch of manufacturing had its distinctive characteristics, there were significant practical, aesthetic and commercial advantages for manufacturers in employing experienced designers who knew the trade, and were fully conversant with production practices. Unless a professional sculptor joined a firm, they were unlikely to have this inside knowledge, which made commissioning one-off designs from artists a riskier proposition. Manufacturers found that one of the best ways to get around this was to make reductions of sculptures, and initial demand for statuettes in Parian suggested they would be profitable for all concerned. In the end, the market did not live up to its early promise, but the publicity given to Parian statuettes compensated manufacturers and sculptors. Overall, it was this increased public exposure for art manufactures that was the prime benefit of the mid-nineteenth century critical discourse for the industrial sector.

scholarly journals The Role of Islamic Banks in the Development of the Jordanian Economy-"Exploratory Study on Arab Islamic Bank"

2016 ◽  
Vol 8 (4) ◽  
pp. 131
Author(s):  
Bader Mustafa Al-Sharif
Keyword(s):  
Agricultural Sector ◽  
Negative Impact ◽  
Industrial Sector ◽  
Customer Relationship ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Medium Level ◽  
Study Population ◽  
The Impact

This study aimed to identify the role of Islamic banks in the development of the Jordanian economy. The study population consisted of public administration and branches of the Arab Islamic Bank. The study sample consisted of (85) customer relationship officers and (30) corporate service officers with a total (115) questionnaires distributed on all respondents. Descriptive approach of means and standard deviation was used; also Simple Regression was used to measure the impact of the role of Islamic banks in the development of the Jordanian economy.Among the most important findings of the study that Islamic banks have a medium level role in the development of the Jordanian economy and the development of the industrial sector, and it was clear that at Islamic banks have low level role with negative impact on the development of agricultural sector. The findings have also revealed that Islamic banks develop the construction sector at a high level.The study recommended the need to overcome the problems faced by agricultural and industrial entrepreneurs by Islamic banks in order to get farmers and manufacturers to get the funds necessary for them as this raises the level of development of the Jordanian economy.

scholarly journals Structural Convergence between African Countries: Empirical Evidence

2022 ◽  
Author(s):  
Ali BAKO OUSMANE ◽  
Mehmet ŞIŞMAN
Keyword(s):  
Instrumental Variable ◽  
Agricultural Sector ◽  
Physical Capital ◽  
Generalized Least Squares ◽  
Industrial Sector ◽  
Estimation Methods ◽  
Significant Shift ◽  
African Countries ◽  
Productivity Level ◽  
Relative Productivity

This paper aims to investigate structural convergence in selected African countries over the period 1994-2019. Using panel data for 48 African countries and several estimation methods [Panel-Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), tobit model, instrumental variable, and Granger non-causality], the results show the existence of the phenomenon of sectoral structural convergence in Africa, i.e. a greater similarity in sectoral structures while income gaps are narrowing. The paper also highlights the service sector's low relative productivity level and industrial sector's low labor force attractiveness despite a significant shift in labor from the agricultural sector and a higher level of relative productivity respectively. To address this issue, the development and acquisition of human and physical capital would be necessary to develop the industrial sector and increase the service sector's productivity.

scholarly journals Are CO2 emissions converging in the European Union? Policy implications

2019 ◽  
pp. 63-82
Author(s):  
Rafael Morales-Lage ◽  
Aurelia Bengochea-Morancho ◽  
Immaculada Martínez-Zarzoso
Keyword(s):  
European Union ◽  
Co2 Emissions ◽  
Agricultural Sector ◽  
Industrial Sector ◽  
Policy Implications ◽  
Transport Sector ◽  
The European Union ◽  
Conditional Convergence ◽  
European Union Policy ◽  
Cross Sectional

This paper focuses on the process of convergence in per capita CO2 emissions that would occur if the measures taken by the European Union to meet the Kyoto Protocol commitments had been effective. We apply a time series and cross-sectional analysis to test for the existence of convergence among countries and for different economic sectors. The sample covers data for the 28 member countries from 1960 to 2012. The results show weak absolute convergence across countries but clear evidence of conditional convergence, with GDP, the weight of industrial sector and the use of renewable energies being the main drivers of divergence. Concerning sectors, there is an increase of emissions in the agricultural sector, but a reduction in the industrial and energy sectors. Different patterns arise in the energy subsectors where manufacturing and electricity notably reduced their emissions while the transport sector increased them in all countries.

scholarly journals INNOVATIVE TRANSFORMATIONS OF THE AGRICULTURAL COMPLEX IN THE CONTEXT OF GLOBAL CHALLENGES OF SUSTAINABLE DEVELOPMENT

2021 ◽  
Vol 5 (40) ◽  
pp. 216-224
Author(s):  
О. Yatsenko ◽  
Y. Zavadska ◽  
O. Khrystenko ◽  
T. Musiiets ◽  
O. Aksyonova
Keyword(s):  
Sustainable Development ◽  
Agricultural Production ◽  
System Analysis ◽  
Agricultural Sector ◽  
Innovation Policy ◽  
Industrial Sector ◽  
Global Market ◽  
Industrial Complex ◽  
Clustering Model ◽  
Food Taking

Abstract. It is determined that ensuring food security and healthy nutrition for the growing population of the planet will remain a challenge for the world community. The global dominants and tendencies of development of agro-production activity within the global market of agro-food products are analyzed. The grouping of leading countries with a highly innovative agro-industrial sector, which is formed taking into account the goals of sustainable development based on the construction of a clustering model using the K-Means algorithm is done. Their experience of formation of the state policy directed for support of innovative transformations of agrarian and industrial complex is generalized and recommendations on implementation of their best achievements in the domestic agricultural sector are offered. The aim of the work is a comprehensive assessment of innovative transformations taking place in the agricultural sector in the context of the challenges of global sustainable development. The task of the research is to determine the most successful group of countries in terms of implementation of intensification of production activities, the effectiveness of innovation policy and the ability to meet the demand for food, taking into account the requirements of sustainable development; providing recommendations for the modernization of agricultural production of domestic producers. The following methods of scientific research were used to achieve the goal and solve the problems of the article: system analysis, forecasting, generalization, modeling, namely clustering by the K-Means algorithm, etc. The scientific novelty of the obtained results is to provide comprehensive recommendations for the formation of domestic public policy aimed at supporting innovative transformations in the agroindustrial sector, based on key factors and determinants of its development and taking into account the best practices of leading countries in this field.Keywords: agricultural production, innovations, sustainable development, state support.JEL Classification O13, O39, Q01, Q17, F63Formulas: 0; fig.: 2; tabl.: 2; bibl.: 20.

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