scholarly journals On the Priorities of Comparative Advantage of Agro-industry Commodities: the way towards Economic Transformation

2019 ◽  
Vol 6 (1) ◽  
pp. 13
Author(s):  
Yagoub Elryah
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Industrial Sector ◽  
Economic Transformation ◽  
Total Output ◽  
Total Employment ◽  
New Structural Economics

Economic development in Sudan has been facing more challenges than ever before in 2011 after South Sudan gets independence, where Sudan lost 75% from oil revenues. As a result, Sudan underwent structural reform that favored the concentrating in non-oil sector. Considering that agriculture has been largely contributing to the GDP, it seems that the main drivers’ of economic growth. One of the most important questions regarding the New Structural Economics framework is (a) why industrialization becomes one the most determinants of country’s economic development, (b) has Sudan’s economic structure change over the years from 1980-2015, and (c) what the nature of that change? The purpose of this work is to identify the priorities of agro-industry commodities that Sudan has to focus on. It develops theoretical framework to investigate the sectoral composition trends of output and employment, and discusses these on the New Structural Economics framework. This study adopted two empirical models to analyze the collected data, which are obtained from different sources. Many of the hypotheses were supported. Major findings of this study are as follows. The analysis of RCA and PAM revealed that Sudan had lower costs in producing of agricultural and agro-industries commodities, except textiles manufacturing. The share of industrial sector in total employment and total output has declined during 2001 and 2015 period. Further analysis reveals that structural change has a negative impact on Sudan’s economy and growth of labor productivity, the share of service in output has steadily increased, reflecting reallocation of employment away from agriculture towards service and trade activities. This study finds evidence of negative structural change on Sudan’s economy and the share of value added manufacturing sector has decreased dramatically.

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.

scholarly journals The Legacy of King Cotton: Agricultural Patterns and the Quality of Structural Change

2018 ◽  
Author(s):  
Yeonha Jung
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Local Economic Development ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Boll Weevil ◽  
Climatic Conditions ◽  
Cotton Production ◽  
Long Run ◽  
Manufacturing Productivity

Agricultural patterns could have diverse impact on long-run economic development. In the context of the US South, this paper examines the legacy of cotton on economic development focusing on a novel channel of structural change. Exploiting variation in cotton production along with agro-climatic conditions, I show that the legacy of cotton has impeded local economic development exclusively as of the mid-twentieth century. The structural break is found to be a consequence of cotton mechanization. Evidence from exogenous variation in the boll weevil infestation shows that cotton farming was strongly dependent on tenant farmers with little human capital. Following cotton mechanization, cotton tenants were largely displaced and absorbed by the manufacturing sector. I then find that the inflow of cotton tenants has reduced labor productivity in the manufacturing sector. Beyond the composition effect, the negative impact on manufacturing productivity has persisted in the long-run through demand-side. Employing an index of state-level policy environment, I exploit within-state variation to show that the legacy of cotton has induced unskill-biased technical change in manufacturing.

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 A Long Run ARDL Investigation of Manufacturing Adjustment to the Services Economy in Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 95-107
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Capital Accumulation ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Business Services ◽  
Development Indicators ◽  
Services Sector ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run

The long-run equilibrating relationship between the value-added growth of services and manufacturing is investigated in this research. The study is based on the well-established empirical link between manufacturing and service activities, and in particular, manufacturing's servicification. The selected variables' annualized time series were obtained from the World Development Indicators. The paper used the autoregressive distributed lag framework to regress manufacturing value-added growth against service value-added growth while accounting for economic growth, factor input growth, and trade effects. The findings revealed that in Nigeria, a strong performing services sector has a large negative impact on manufacturing performance, whereas capital accumulation and income growth have positive effects. The supply constraint of business services that the manufacturing sector requires is at the root of this finding. The paper advocates for policy frameworks that support the efficient supply of business services as both a manufacturing input and a productivity enhancer for the entire economy.

scholarly journals Can Sectoral Re-allocation Explain the Jobless Growth? Empirical Evidence from Pakistan

2010 ◽  
Vol 49 (4II) ◽  
pp. 705-718 ◽  
Author(s):  
Azad Haider
Keyword(s):  
Structural Change ◽  
Empirical Evidence ◽  
Structural Changes ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Foreign Technology ◽  
Industrial Sectors ◽  
Jobless Growth

The present paper discuss the nature of structural changes in employment to understand jobless growth in Pakistan for the period spanning over 1967-2008. In our work (elsewhere)1 analysing Pakistan at sectoral level to find underlying factors generating jobless growth, we found that Jobless growth in manufacturing sector was anticipated. Industrial sector has a significant importance in any economy across the glob. Recent changes in the use of capital—based foreign technology has resulted in substitution of labour with non-labour inputs such as capital. Employment shifts between industrial sectors are often witnessed as indicators of Structural change in an economy. In this paper we are more interested in the nature of structural change that took place in Pakistan economy over 1967-2008. We set to analyse four commonly used measures of sectoral reallocation proposed by Lilien (1982), Groshen and Potter (2003), Rissman (1997), and Aaronson, Rissman and Sullivan (2004). Findings of our work are suggesting that the economy of Pakistan underwent structural change during periods of recession and recovery. However, it does appear that structural changes were more pronounced at the time of 1969 recession than that of 1991 recession. A plausible explanation for this result might be significant shifts in employment from agriculture towards services sectors. We conclude, based on the evidence from our study, that sectoral reallocation is one of the major causes of jobless growth in Pakistan.

scholarly journals Characterising deindustrialisation: An analysis of changes in manufacturing employment and output internationally

2008 ◽  
Vol 33 (3) ◽  
pp. 433-466 ◽  
Author(s):  
Fiona Tregenna
Keyword(s):  
Economic Growth ◽  
Manufacturing Sector ◽  
Value Added ◽  
Decomposition Techniques ◽  
Total Employment ◽  
Manufacturing Employment ◽  
Labour Intensity ◽  
Long Run ◽  
Employment Share ◽  
Special Growth

Abstract Deindustrialisation is typically conceptualised as a decline in manufacturing as a share of total employment. From a Kaldorian perspective deindustrialisation could have negative implications for long-run growth, given the special growth-pulling properties of manufacturing. However, defining deindustrialisation purely in terms of employment share is conceptually limiting given that some of the Kaldorian processes operate primarily through output rather than employment, as well as blunting empirical analysis by not focussing enough on changes in manufacturing share of gross domestic product (GDP). This study develops a new method using decomposition techniques to analyse changes in manufacturing employment levels and shares in 48 countries over periods of ‘deindustrialisation’. The analysis separates out changes in the levels and shares of employment manufacturing into components associated with changes in the share of manufacturing in GDP, the growth of manufacturing value-added, the labour intensity of manufacturing production and economic growth. The results indicate that in most cases the decline in manufacturing employment is associated primarily with falling labour intensity of manufacturing rather than an overall decline in the size or share of the manufacturing sector. We suggest that deindustrialisation should appropriately be defined in terms of a sustained decline in both the share of manufacturing in total employment and the share of manufacturing in GDP.

scholarly journals Development of innovation and investment potential of the industrial sector

2019 ◽  
pp. 5-11
Author(s):  
Iryna Anatoliivna Markina ◽  
Serhii Mykolaiovych MARCHYSHYNETS
Keyword(s):  
Economic Development ◽  
Manufacturing Sector ◽  
System Development ◽  
Complex Form ◽  
Decisive Role ◽  
Industrial Sector ◽  
Point Of View ◽  
Investment Policy ◽  
Stage Of Development ◽  
The Impact

Introduction. The main catalyst for effective transformations in the industrial sector of the economy is innovation and investment policy, which aims to increase the potential, namely the capacity of the manufacturing sector of the Ukrainian economy. The innovation and investment potential closely reflect the objectively existing possibility of socio-economic development of the human system. The purpose of the article is to clarify the basic principles and approaches that reflect the innovation and investment potential and the essence of innovation and investment development. Results. The state ideology in the field of innovation and investment policy is considered. A generalization of the concept of “development” of the philosophical point of view is presented. The decisive role of development in understanding the essence of everything is proved. The vector of development in terms of its regressive or progressive manifestation is considered. It is determined that the stages of development are the stages of system change, which include: appearance, upward stage of development, maximal development or maturity, regressive changes or downward stage, disintegration and death. The tendency of differentiation in socio-economic systems is determined. The essence of “becoming” as a stage in the system development is considered. The essence of the system's maturity is revealed. External and internal sources of system development are considered. On the basis of the theoretical generalization, the key properties of the concept of “development” are given: it acts as a form of constant movement forward from simple to complex form; the degree of development is determined by the influence of external and internal factors; the way of development of the system is determined by its basic motives, the degree of recognition by the system of objectively existing reality; development is possible if it’s provided by the quantitative parameters of the end goal; the form of its implementation is cyclical or spiral; analysis of development must be carried out in two directions of research: in the material and spiritual worlds. The definition of “innovation” is given. The essence of scientific and technological progress as a basis of economic development is considered and the vision of leading scientists-economists on this phenomenon is presented. Quantitative estimates of the impact of innovative GDP growth are provided. The quantitative contribution of various factors of economic growth of a market economy is given. Key words: management, enterprise, potential, innovations, investments, innovation and investment develop-ment.

scholarly journals ANALISIS DAMPAK SEKTOR INDUSTRI MANUFAKTUR, KEMISKINAN DAN BELANJA PEMERINTAH BIDANG LINGKUNGAN TERHADAP KUALITAS AIR DI INDONESIA

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Azanul Akbar Lubis
Keyword(s):  
Economic Growth ◽  
Water Quality ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Government Expenditure ◽  
Well Being ◽  
Industrial Sector ◽  
Regional Budget ◽  
The Impact ◽  
Positive Effect

Manufacturing sector is one of the sectors that contribute to economic growth in Indonesia. Results of these contributions is the changing structure of the Indonesian economy from agriculture to the industrial sector. And poverty in Indonesia which is one indicator of well‐being in an area tend to be in 2000 to 2010 has a pattern that tends to decline, although not very significant. Of 2 (two) variables, namely the Manufacturing Sector and Poverty, the author tries to determine the impact of variables on water quality in Indonesia, by adding variable Expenditures Environmental Affairs as variables that also impact the water quality in Indonesia. Manufacturing Sector GDP, the number of poor, Regional Budget (APBD) Environmental Field, each is used as a proxy for the manufacturing sector, poverty and Environment Sector Government expenditure. The data is compiled based on 28 provinces in Indonesia in 2009, 2010 and 2011. The results obtained showed that the industrial sector and poverty have a negative impact on water quality while Government Expenditure Environment Sector positive effect on water quality in Indonesia.

scholarly journals Short-Term Employment Functions in Manufacturing Industries of Pakistan

1978 ◽  
Vol 17 (3) ◽  
pp. 333-344
Author(s):  
Karamat Ali
Keyword(s):  
Economic Development ◽  
Gross National Product ◽  
Manufacturing Sector ◽  
Manufacturing Industries ◽  
National Product ◽  
Short Term ◽  
Total Employment ◽  
Industrial Growth ◽  
Main Indicator ◽  
Percentage Share

The manufacturing sector has played an important role in the economic development of Pakistan. The main indicator of industrial growth—the percentage share of manufacturing in Gross National Product—has been increasing. However, the percentage of employment in manufacturing has decreased. "The share of manufacturing in GNP has increased from 8.1 percent in 1950 to 16.0 percent in 1968. But employment in manufacturing sector declined from 15.0 percent of total employment to 14.3 percent in 1965 [5, p.212].

scholarly journals Energy Efficiency: The Manufacturing Sector in Indonesia

JEJAK ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 200-217
Author(s):  
Bayu Hariyanto
Keyword(s):  
Energy Efficiency ◽  
Manufacturing Industry ◽  
Energy Intensity ◽  
Manufacturing Sector ◽  
Empirical Finding ◽  
Value Added ◽  
Industrial Sector ◽  
Improve Energy Efficiency ◽  
Pulp Paper ◽  
Industry Standards

Indonesia is involved in the global effort to alleviate the deterioration of the environment due to climate change. Given that the manufacturing industry accounts for the second-highest share of national energy consumption, efficiency energy in the industrial sector is crucial. This research examines which industrial subsector has to be prioritized to improve energy efficiency and what are the determinant factors that influence energy efficiency in Indonesia manufacturing. This study analyzes energy intensity as an approach to measure energy efficiency. Focusing on the 2010 - 2015 period, this research employs two methods, namely input-output and panel data regression analysis. The empirical finding shows that textiles and textile products; pulp, paper, paper products, printing, and publishing; and rubber and plastics sectors are the first priority subsectors that must implement green industry standards. The next priority is the subsectors at the second level but have no green industrial standards, namely electrical and optical equipment. Furthermore, there were four variables that statistically increase energy intensity, namely lagged energy intensity, technology intensity, lagged value added, and location of plant. However, other two variables, the price of electricity and company size, can reduce energy intensity.

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