scholarly journals Structural changes and labor productivity slowdown in the Euro Area

2007 ◽  
pp. 336-367
Author(s):  
Marcello Estevão
Keyword(s):  
Labor Productivity ◽  
Euro Area ◽  
Structural Changes ◽  
Productivity Slowdown

scholarly journals Analysis of shocks affecting Europe: EMU and some central and eastern acceding countries

2009 ◽  
Vol 56 (1) ◽  
pp. 21-38 ◽  
Author(s):  
Arfa Ben
Keyword(s):  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
Structural Changes ◽  
Output Growth ◽  
Structural Var ◽  
European Countries ◽  
European Monetary ◽  
Demand Shocks ◽  
East European

This paper deals with the synchronization of business cycles and economic shocks between the euro area and acceding countries. We therefore extract the business cycle component of output by using Hodrick-Prescott filter. Supply and demand shocks are recovered from estimated structural VAR models of output growth and inflation using long run restriction (Blanchard and Quah). We then check the (A) symmetry of these shocks by calculating the correlation between euro area shocks and those of the different acceding countries. We find that several acceding countries have a quite high correlation of demand shocks with the euro area however supply shocks are asymmetric; the correlation between euro area and central and east European countries (CEECs) is negative. We therefore conclude that joining the European Monetary Union is not yet possible: central and east European countries have to make structural changes to join the European Monetary Union.

scholarly journals Measuring Growth of Labor Productivity in Vietnam by Shift-Share Analysis of Structure of Industries

2013 ◽  
Vol 218 ◽  
pp. 37-47
Author(s):  
TẾ NGUYỄN QUỐC ◽  
ĐÔNG NGUYỄN THỊ
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Structural Changes ◽  
Static Shift ◽  
Shift Effect ◽  
Dynamic Shift

This research aims at measuring growth of labor productivity during structural changes in Vietnam in the years 1994-2011. Shift-share analysis of structure of industries shows that growth of labor productivity in Vietnam is a result from the static shift effect. In other words, productivity growth is resulted from changes in structure of industries, in which labors move from low-productivity industries to higher ones. Both endogenous (within-industry) factors and dynamic shift effect seem to be affected by the burden of structure and the backwardness of technology in the process of economic structural changes.

scholarly journals Nominal exchange rates EUR/GRD and EUR/ITL in the context of leaving the euro zone by Greece and Italy

2021 ◽  
Vol 43 ◽  
pp. 293-316
Author(s):  
Katarzyna Dąbrowska-Gruszczyńska ◽  
◽  
Marcin Gruszczyński ◽  
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Euro Area ◽  
Structural Changes ◽  
Currency Union ◽  
Jel Classification ◽  
Euro Zone ◽  
Value Contribution ◽  
Nominal Exchange Rates ◽  
Shadow Exchange Rate

Aim/purpose – The aim of this paper is to present two cases of crises in Greece and Italy and to evaluate the shadow exchange rates of hypothetical new currencies (re)introduced after Grexit and Italexit. Design/methodology/approach – Both shadow exchange rates are estimated using speculative pressure index concept that emphasizes the importance of changes in foreign exchange reserves and interest rate differentials in the absence of an independent nomi- nal exchange rate. The research sample covers Greece in 1989-2020 and Italy in 1989- 2020. Findings – The research presented the estimation of shadow exchange rates EUR/GRD and EUR/ITL during the euro zone membership period. Leaving the euro area one can expect the following market rates: EUR/GRD 600 and EUR/ITL 1850. That would mean 75% depreciation and 5% appreciation to the current euro parities EUR/GRD 340.75, and EUR/ITL 1936.27, respectively. Research implications/limitations – After potential Grexit Greek authorities could expect significant nominal depreciation of a new currency (or should introduce it with a substantial discount). In the case of Italexit, the new currency would preserve its nomi- nal value. The limitations of the research methodology are: a long period of the analysis covers structural changes of financial markets, crisis events, political factors (e.g., QE programs). Originality/value/contribution – The originality of this approach lies in the combina- tion of two important economic concepts – the idea of shadow exchange rate and the index of speculative pressure. Combined together they help to prepare the methodology of shadow exchange rates evaluation for currencies that are currently in the common currency system (e.g., currency union). These results can help in economic and political discussions on effects of leaving the currency union. Keywords: nominal exchange rates, euro area, financial crises. JEL Classification: F21, F31, F37, F38, G15

scholarly journals Structural shifts: impact on productivity and growth of Ukraine's economy

2021 ◽  
Vol 2021 (3) ◽  
pp. 59-76
Author(s):  
Inna Shovkun ◽  
◽  
Keyword(s):  
Economic Growth ◽  
Labor Productivity ◽  
World Economy ◽  
Structural Changes ◽  
Global Financial Crisis ◽  
Technological Development ◽  
Structural Problems ◽  
Industrial Sectors ◽  
The World ◽  
Structural Shifts

The leading feature of the modern world has been the deep structural shifts caused by radical transformations of its industrial landscape. The corresponding transformations were caused by changes in the internal structure of national industrial sectors and were based on the technologies of the "fourth industrial revolution", whose emergence gave additional impetus to the structural transformation of the world economy, intensifying competition in global markets. The Covid crisis was a catalyst for accelerating changes in the intersectoral proportions of the world economy, complicating the existing structural problems. The study shows that the key feature of the model of structural changes that occurred in Ukraine's economy after the global financial crisis was the accelerated reduction of the industrial sector, especially the loss of potential of the processing industry, its technological simplification and narrowing the variety of industries. This was accompanied by increased dominance of the tertiary sector and the growth of the primary sector. Excessive share in the structure of production is occupied by industries, whose mode of reproduction is able to generate only relatively low rates of economic growth (mining and related industries of primary processing in industry and agriculture). Such a trend of structural shifts is not able to generate the necessary boost of economic growth, and much less so as it is burdened by the risks of deepening structural inconsistency of Ukraine’s economy with the cardinal changes taking place in the world economy. Comparison of parameters and trends of structural changes in Ukraine’s economy and in a comparable group of countries and the world as a whole shows that the changes in the structure of Ukraine’s economy were much higher, but did not create sufficient potential for sustainable economic growth. The author analyzes the gaps in labor productivity between economic activities and sectors of Ukraine’s economy, as well as changes in their dynamics, which leads to the conclusions about the relationship between the rates of technological development of different sectors of Ukraine’s economy and the gradual slowdown of the already imperfect technological development of this country’s industry with further loss of competitiveness. Estimated the degree of influence of such factors as investments and technological innovations, as well as shifts in the structure of employment on the increase of labor productivity in Ukraine’s economy. Using the apparatus of econometric modeling, the author evaluates the dependence of the dynamics of GDP growth on the change of the indices of the physical volume of GVA in the sectors of this country’s economy.

scholarly journals Structural transformations of the EU industrial sector

2020 ◽  
Vol 2020 (3) ◽  
pp. 97-125
Author(s):  
Ksenia Skorik ◽  
Keyword(s):  
Labor Productivity ◽  
Industrial Policy ◽  
Structural Changes ◽  
Value Added ◽  
Industrial Sector ◽  
Academic Community ◽  
Services Sector ◽  
Gross Value Added ◽  
Lower Productivity ◽  
The Eu

The issue of industrial policy and industrial problems is one of the most controversial in the European academic community. Even today, we see a lack of theoretical basis for decision-making on industrial policy issues. The main purpose of the publication is to assess the contribution of industry to the socio-economic development of the EU and its member states, as well as to the dynamic structural changes that took place during 2000-2019. To achieve the article's goal, the author uses such indicators as the share of the industrial sector in the generation of gross value added, employment, labor productivity, and exports/imports. The article reveals a general trend to increase in the share of the services sector in the generation of gross value added for the EU-28 and to decrease in the share of the industrial sector. It is established that industry remains an important sector for the EU economy, and for the EU-28, it provides almost 20% of gross value added and more than 70% of total exports, and accounts for about 15% of the employed population. For each of the EU countries, the socio-economic contribution of industry is different - for Central and Eastern Europe, it is more important in the generation of gross value added and employment than for the EU founder countries of the euro area (the EU-15 group). It is found that labor productivity in the EU-15 is higher than in other countries. Growing labor productivity is typical for Denmark, the Netherlands, Ireland, Sweden, and Great Britain, while lower productivity - for such CEE countries as Bulgaria, Romania, Lithuania, and Latvia. At the same time, growth rates of all industrial indicators in the latter countries is much higher than in the EU-15. The author considers the new EU industrial policy and various problems of the industrial sector in the EU. The study was carried out on the statistical basis of the European Commission using the methodology of Polish scientists of the Warsaw School of Economics to study the new industrial policy (Krzysztof Falkowski, Adam A. Ambroziak 2015).

scholarly journals ABOUT THE FEATURES OF FORMING THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES

2021 ◽  
Author(s):  
Tamara Horobets ◽  
Anatoliy Goncharuk
Keyword(s):  
Labor Productivity ◽  
Business Performance ◽  
Structural Changes ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Goods And Services ◽  
Sectoral Structure ◽  
Absolute Efficiency ◽  
Medium Enterprises ◽  
High Degree

The authors conducted a sectoral measuring the performance of SMEs sample of the Odessa region for 2013-2019. The study found that all absolute and relative performance indicators increased. However, given the inflation rate for the period under review, the real level of absolute value-added decreased. The growth of absolute efficiency, i.e. the share of value-added in the price of goods and services SMEs was low (by 4.1%), but against the background of the crisis in the economy, this fact is positive and indicates an improvement in the ability of SMEs to create value-added. It was also found that during the studied period in the sectoral structure of performance of SMEs there were significant changes, which were manifested, in particular, in the change of leaders from transport, warehousing, postal and courier activities in 2013 to financial and insurance activities in 2019. Increase in performance for the entire sample in 2019 was due to two industries - financial and insurance activities and the processing industry. In addition, during the study period there was a reduction in the spread of performance scopes, i.e. equalization of performance within each industry. The authors found a certain paradox, which is that the increase in the labor productivity at SMEs leads to a reduction in the value-added of products (services) they produce. This paradox is called by the authors as "opposite effect", which is a phenomenon of atypical influence of individual components on the business performance. Moreover, it was reinforced by the atypical link between salaries and labor productivity, which appeared in 2019, and shows that wage growth not only does not stimulate an increase in labor productivity, but, on the contrary, leads to its reduction with a high degree of probability. Hence, the industries in which SMEs paid employees the highest salaries in 2019 had the lowest level of labor productivity and, conversely, the industries with the lowest salaries had the highest labor productivity among other industries studied. Thus, the features of the forming the performance of SMEs are the identified general trends in its dynamics, structural changes and a certain paradox, which is the atypical impact of labor and salary on performance and productivity in this sector of Ukraine's economy.

Econometric Analysis of Factors of Labor Productivity Growth in Constituent Entities of the Russian Federation

2021 ◽  
Vol 28 (2) ◽  
pp. 80-89
Author(s):  
E. A. Gafarova
Keyword(s):  
Comparative Analysis ◽  
Labor Productivity ◽  
Russian Federation ◽  
Productivity Growth ◽  
Structural Changes ◽  
Added Value ◽  
High Tech ◽  
Labor Productivity Growth ◽  
The Russian Federation ◽  
Analysis Of Dynamics

In the current context of recovery growth in Russia, the urgent task of identifying factors of growth of labor productivity can be solved using econometric methods. Preliminary examination of interregional comparative analysis of dynamics of this crucial economic efficiency index, in the author’s opinion, showed low information content of this approach due to the presence of a low base effect. The author recommends a more realistic approach to the interregional comparative analysis of the labor productivity dynamics and its growth factors on the basisof econometric panel data models.It was revealed that for the period 2010–2018, the growth of labor productivity in the regions of the Russian Federation strongly correlated with dynamic characteristics of industrial production, real wages and physical volume of investments in fixed assets, growth intensity in the share of added value of high-tech and knowledge-intensive industries in GRP. It has been empirically proven that the growth of labor productivity in the regions in the considered interval correlates with a decrease in the number of employees. In addition, an increase in labor productivity is typical for constituent entities of the Russian Federation with high rates of industrial production.The influence of the structure of employed in the economy on the level of education on the growth of labor productivity has not been established, which may indicate the presence of inefficient jobs. Also, the hypothesis that the export-oriented regions of the Russian Federation are highly productive has not been confirmed.In conclusion, taking into account the results of modeling, the author formulated recommendations adjusting focal points of structural changes in the economy, which could boost labor productivity growth.

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