Factor decompositions of gross value added growth by NACE sections and voivodships

2019 ◽  
Vol 64 (9) ◽  
pp. 37-59
Author(s):  
Dariusz Kotlewski
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Production Factor ◽  
National Accounts ◽  
Aggregate Level ◽  
Factor Productivity ◽  
Local Data ◽  
Gross Value Added ◽  
Regional Aspect ◽  
Value Add

The aim of this paper is to demonstrate that performing gross value added growth decompositions in four variants makes it possible to deepen the observation of eco-nomic processes. These variants have been obtained on the basis of two fundamental dichotomies. The first of them involved performing a decomposition of the gross value add-ed growth into the contributions of production factor remunerations, and, in parallel, a de-composition into the contributions of production factor stocks and total factor productivity (TFP).The second dichotomy involved performing separate but parallel decompositions for employees and for employed persons. The devised methodology made it possible to per-form computations for the years 2001–2015 at the aggregate level, according to NACE sections, according to voivodships and according to both the NACE sections and the voi-vodships. The decompositions were performed basing on Statistics Poland’s data from the Bank of Local Data and the National Accounts. The presented results confirm that perform-ing decompositions according to the two above-mentioned dichotomies makes it possible to deepen the analyses of the economic growth, which is especially important in the regional aspect.

Decompositions of gross value added into contributions of labour and capital compensations

2017 ◽  
Vol 62 (2) ◽  
pp. 31-51
Author(s):  
Dariusz Kotlewski
Keyword(s):  
Value Added ◽  
Data Bank ◽  
Data Availability ◽  
Massive Data ◽  
National Accounts ◽  
Local Data ◽  
Gross Value Added ◽  
Simplifying Assumptions ◽  
Polish Economy ◽  
Made In

The article is about gross value added (GVA) decompositions into contributions of labour and capital compensations. Owing to the CSO’s data availability some simplifying assumptions were made in the research methodology. It allowed to perform massive data computations for the years 2001—2012 not only at the aggregate level of the Polish economy, but also at particular NACE-section and voivodship levels. Decomposition was based on data from the Local Data Bank and the CSO’s national accounts, which were used in the research concerning the KLEMS Productivity Accounts. Finally, a continuation of this research is suggested towards carrying out decompositions that would allow to extract Total Factor Productivity (TFP).

scholarly journals The Shift-Share Method: An Instrument for Analyzing the Dynamics of Industry Structure of the Economy

2020 ◽  
Vol 87 (4) ◽  
pp. 36-47
Author(s):  
Т. Ye. Trubnik ◽  
О. К. Mazurenko
Keyword(s):  
Economic Growth ◽  
National Economy ◽  
Financial Services ◽  
Rapid Development ◽  
Value Added ◽  
Economic Activities ◽  
Gross Value Added ◽  
Regional Factors ◽  
Bank System ◽  
The Impact

The socio-economic events of the latest years and uncertainties in the vectors of development of the economic environment cause the need for robust statistical assessment. An important area of studies of the modern economy is determining the type of economic growth. The shift-share method is applied to determine the effect of the impact of national, industrial and regional factors on the dynamics of economic growth. The shares of effects (effects of the impact) caused by national economy trends, industry mix and region-specific factors are identified and analyzed. The position of economic activities in the industry mix of the Kyiv economy is analyzed and assessed by indicators of gross value added and number of employees with consideration to three components. The impact of each of them caused by the national factors, the established industry mix of the national economy and the internal competitiveness of a specific industry of the region are characterized. Factor decomposition of the change in the indicators caused by the national component, industry-specific and region-specific effects reveals that the overall growth in the gross value added by economic activity in Kyiv is to a large extent conditional on the effective industry policy and to the least extent on regional factors. However, the employment reduction in the Ukrainian capital was caused by the impact of national and industry factors, and was not compensated by the positive local effect. It is revealed that the stable flagship position is taken by financial and insurance activities, in spite of recent reforms in the bank sector with cleansing the bank system from ineffective and nontransparent entities. Kyiv remains to be the core center for concentration of financial services. The progressive growth in the construction market meets the needs of the megalopolis with its increasing population. The residents’ desire to expand the dwelling size and improve the living conditions helps improve business climate in the construction sector, increase its growth rates and share in the gross regional product (indirectly, through the gross value added).       The section “Information and telecommunications” stands steadily on the top positions. Its rapid development, as a signal of the digital economy, enables for momentary exchanges of information and services on the domestic and external market, thus creating favorable prospects.   The analysis of the composition of the problem group and the outsider group among the economic activities reveals the stable presence of manufacturing and social industries. Enterprises of the sections “Manufacturing”, “Supply of electricity, gas, steam and conditioned air”, “Supply of water, sanitation, treatment of wastes” have a stock of problems and system drawbacks; they suffer from lack of investment and innovation, they have no strong orientation on the challenges of modernity and market needs, which weakens the positions of the Ukrainian capitals’ economy as the industrial center. It is proposed to use the graphic method for illustrating the distribution of economic activities in Kyiv by quality characteristics of operation. The factors accelerating or hampering the development of economic activities in the region are determined. Recommendations on management decisions related with future operation of industries referred to as “leaders”, “regulars”, problematic industries and outsiders are given.

Is Liberalisation Associated with Higher Productivity? A Case Study of Punjab Manufacturing

2007 ◽  
Vol 11 (4) ◽  
pp. 53-65
Author(s):  
Ravi Kiran ◽  
Manpreet Kaur
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Manufacturing Sector ◽  
Research Work ◽  
Value Added ◽  
Business Environment ◽  
Empirical Literature ◽  
Factor Productivity ◽  
Policy Regime ◽  
Indian Economy

Productivity is an important concept in the context of the economic growth of a nation. The rate of productivity in accelerating the pace of economic growth is well recognised in both the theoretical as well as empirical literature on growth. The significance of productivity for economic growth was highlighted by Kuznets (1966) when he showed that rapid gain in industrial productivity was the crucial underpinning of Western Industrialization. The Indian Economy was thrust into throes of rapid change in the nineties when the then government of India adopted the New Economic Policy. Liberalization, Privatization and Globalization — became the three planks by which the Indian Economy was propelled into the fusion. This process has had maximum impact on the manufacturing sector, as it has radically changed its business environment and future growth dynamics. All the states of Indian union have been affected differently due to the structural changes. In response to changed policy regime different sub sectors of industry of Punjab have responded differently to adjust optimally. The present research work focuses on studying the response of manufacturing industries in Punjab to the changed policy regime after the advent of liberalisation and privatisation process in India. The present study analyses the trends in value added, labour, capital as well as trends in labour, capital and total factor productivity for sixteen industrial groups on the organised manufacturing sector for the period 1980 — 81 to 2002 — 03 and also for two sub periods, period I, 1980 — 81 to 1990 — 91 and period II, 1991 — 92 to 2002 — 03. The present study tries to examine the trends in partial productivities as well as total factor productivity in the two sub periods to see whether there has been an improvement in productivity in the post 1991 period, the period associated with liberalisation and globalisation. The study tries to analyse the industries which have been showing better performance in terms of partial and total factor productivity and also study the trends of the industries which have not performed well in the period of analysis.

Manufacturing growth in India in recent years

2016 ◽  
Vol 9 (2) ◽  
pp. 102-113 ◽  
Author(s):  
Bishwanath Goldar
Keyword(s):  
Commercial Bank ◽  
Manufacturing Sector ◽  
Value Added ◽  
Output Growth ◽  
Bank Credit ◽  
National Accounts ◽  
Content Type ◽  
System Of National Accounts ◽  
Gross Value Added ◽  
Manufacturing Growth

Purpose Since the announcement of the new series of national accounts for India (with base 2011-12) in January 2015, there has been endless controversy over the new gross domestic product (GDP) growth numbers, particularly in respect of growth of Indian manufacturing. The purpose of this paper is to highlight certain policy issues concerning India’s system of national accounts, in the context of the methodological changes made in the new national accounts series, and to check the validity of the view held by some critics that the new series has significantly overstated the growth rate in real gross value added in manufacturing in recent years. Design/methodology/approach The paper presents a brief, selective review of the literature that has emerged on the new series of national accounts. A close look is taken at the available data on real gross value added growth in Indian manufacturing in conjunction with data on growth in India’s exports and in outstanding non-food commercial bank credit. Analysis of these data is undertaken with the help of a table and some graphs. Findings The paper finds that there is not enough basis to believe and argue that the GDP estimates in the new series of national accounts significantly overstate the true manufacturing sector growth in India. Originality/value Rates of manufacturing output growth in recent years indicated by the new series of national accounts for India are subjected to careful scrutiny by contrasting yearly growth rates in manufacturing output with those in India’s non-oil exports and in outstanding non-food commercial bank credit.

scholarly journals Tourism contribution to Gross Domestic Product (GDP) and Gross Value Added (GVA)

2020 ◽  
Vol 10 (3) ◽  
pp. 176-182
Author(s):  
Milin Ioana Anda ◽  
Merce Iuliana Ioana ◽  
Iancu Tiberiu ◽  
Pet Elena ◽  
Tigan Eugenia
Keyword(s):  
Gross Domestic Product ◽  
Value Added ◽  
Tourism Industry ◽  
Domestic Product ◽  
Data Series ◽  
National Accounts ◽  
Tertiary Sector ◽  
Goods And Services ◽  
Gross Value Added ◽  
Macroeconomic Indicators

The overall evolution of the economy is usually appreciated by two macroeconomic indicators GDP and GVA, which by their value gives us clear information on the state of the economy.  Gross domestic product (GDP), the main macroeconomic aggregate of national accounts, is the final result of the production activity of resident producer units and which corresponds to the value of goods and services produced by these units for final consumption. Gross Value Added (GVA) is the balance of the production account and is measured as the difference between the value of the goods and services produced (valued at basic prices) and the intermediate consumption (valued at the buyer's prices), thus representing the new value created in the production process. GVA is calculated before calculating the consumption of fixed capital. Since 1990, we have been confronted with a major restructuring of the way GDP and GVA are created due to the intensive process of restructuring the economy. In the paper we will analyze the basis of the processing of national statistical data, how the tourism component of the tertiary sector contributes to the formation of the aggregate indicators presented above. In 2016, Romania had a GDP of 169.6 billion euros, below the Czech level (174.4 billion euros), Greece (175.9 billion euros) and Portugal (184.9 billion euros). Data series published by the European Statistical Office show that in the first quarter of this year, Romania's GDP adjusted for seasonal influences was 44.2 billion euros, while the value of GDP- Greece was 43.96 billion euros, the Czech Republic's 44.85 billion euros, and Portugal's 47.37 billion euros. In terms of GVA training, Romania is included in the European Union's Statistical Yearbook 201 6 as the country with the largest contributions to the Gross Value Added  in the economy from industry, agriculture and construction, simultaneously with the lowest Public sector contribution (administration, defense, education, health and social welfare, etc.) Although professional, scientific and technical activities have seen the largest increase in the share of Gross Value Added  training, they remain below the average of 10.4% Registered on the whole EU. There is an increase in the art, entertainment, recreation and other activities related to tourism - which brought us near the European customs and contributed to the "structural convection" of the Romanian economy. Touristic activity, particularly complex, with upstream and downstream implications, generates a tourism industry, whose components contribute to the formation of GDP and national  Gross Value Added   We will analyze the share of tourism in Romania's Gross Domestic Product in the period 2008-2014, gross value added in the tourism industry  direct gross value added from tourism  and gross domestic product of tourism  in 2013 and 2014.   Keywords: macroeconomic indicators, tourism industry, Gross Domestic Product, Gross Value Added economy

scholarly journals European Funds for Rural Areas and Regional Convergence of Agriculture in Poland

2019 ◽  
Vol 12 (1) ◽  
pp. 12-22
Author(s):  
Mieczysław Adamowicz
Keyword(s):  
European Union ◽  
Rural Areas ◽  
Rural Economy ◽  
Labour Productivity ◽  
Value Added ◽  
Added Value ◽  
The European Union ◽  
Local Data ◽  
Gross Value Added ◽  
Sigma Convergence

SummarySubject and purpose of work: The aim of the article is to assess the phenomena of sigma convergence of labour productivity in agriculture and other sectors of rural economy in Polish regions during 2003 – 2014 in the context of the amount of European funds designated for agriculture and rural areas. European supprt was compared to the Gross Added Value of agriculture, forestry, hunting and fishery.Materials and methods: The subject literature and statistical data received from the Agricultural Modernization Agency and the Local Data Bank of the Central Statistical Office were used. The empirical data regarding the level of agriculture in regions as well as the data on the resources utilised from the European Union were examined in order to assess the correlation between them and the phenomenon of regional sigma-convergence.Results: The study confirms the sigma convergence of the Gross Value Added per units of funding obtained from the European Union Budget and different level of sigma convergence of GVA / PE in regions.Conclusions: Sigma convergence assessment of the Gross Value Added per person employed in regions shows that in the analyzed period three phases could be distinguished: convergence (2003 – 2008), divergence (2008 – 2010) and stagnation (2010 – 2014).

scholarly journals Regional disparities in labour productivity in Poland: a spatial statistics approach

2016 ◽  
Vol 5 (2) ◽  
pp. 53
Author(s):  
Agata Sielska ◽  
Aleksandra Pawłowska
Keyword(s):  
Economic Growth ◽  
Rural Development ◽  
Labour Productivity ◽  
Spatial Association ◽  
Value Added ◽  
Spatial Diversity ◽  
Rate Of Change ◽  
Agricultural Economics ◽  
Productivity Level ◽  
Gross Value Added

An economic growth is considered in the agricultural economics as a central issue, most generally understood as long-term process of increasing agricultural production. Especially in neoclassical theory, the economic growth is determined mainly by a labour productivity. Hence, level and rate of change of the labour productivity are significant, particularly in the context of state activities for rural development. Our research objective was to examine spatial diversity of the labour productivity in Poland. The following partial objectives were also defined: measurement of strength and direction of inter-territorial dependencies and identification of clusters with high (or low) labour productivity level. Moreover, we assessed the labour productivity in the context of regional subsidies. Defining the labour productivity as gross value added divided by number of agricultural workers, we used Moran’s I and Geary’s C for identifying the spatial association. The calculations were made for 66 subregions at NUTS3 level, on the basis of information from the Local Data Bank base created by the Central Statistical Office of Poland. As the preliminary results indicated, the level of labour productivity differed by region. This included cluster with relatively low labour productivity in the Southeast and cluster with relatively high labour productivity in the North. Our findings may support decision-makers in evaluation of the instruments implemented by EU and national institutions for rural development and contribute to better understanding of agricultural policy effects. Keywords: agricultural economics, labour productivity, gross value added, spatial autocorrelation 

scholarly journals ASSESSMENT OF FACTORS OF SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR USING THE COBB-DOUGLAS PRODUCTION FUNCTION

2021 ◽  
Vol 7 (2) ◽  
pp. 37-49
Author(s):  
Olena Vasyl’yeva
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Production Function ◽  
Agricultural Sector ◽  
Value Added ◽  
Scale Economy ◽  
Pollutant Emissions ◽  
Gross Value Added ◽  
The Impact ◽  
Douglas Production Function

The aim of the article is to assess the impact of various factors (forms of capital) on the formation of gross value added and gross output of the agricultural sector of Ukraine’s economy under sustainable development using the modified Cobb-Douglas production function. Methods. The theoretical and methodological basis of the study consisted of the papers on economic growth, sustainable development and forecasting by scientists in classical and modern economics. A monographic method was used to cover the scientists’ views on the research issue. The parameters of the production function describing how variables (physical and human capital, pollutant emissions) act on gross value added and gross output of the agricultural sector of Ukraine were estimated on the basis of the modified Cobb-Douglas production function. Statistics for agriculture covering the period 2008-2018 were used for the assessment. The correlation and regression analysis was used to determine and verify the parameters of the production function. Equations of balance and construction of isoquants were used to foresight the optimal combinations of factors of the production function. Results. Using the Cobb-Douglas production function, econometric analysis with eco-socio-economic factors has shown that economic growth in agriculture is associated with improved quantitative and qualitative characteristics of labour potential, growing capital investment and reducing pollutant emissions. Estimation of the elasticity coefficients of the constructed Cobb-Douglas function (the sum exceeds 1) justifies that the economic development of agriculture mainly contains the features of a large-scale economy: modern level of science and technology provides advantageous expanding production to increase output. Practical significance. The constructed models allow to forecast assessment of the development of the agricultural sector’s components and can be used to develop the basic directions of the state agricultural policy to manage the formation and use of resource potential. Value/originality. Modelling how the resource factors act on output using the method of construction and calculation of parameters of the production function allows to predict the sustainable development of agricultural production under quantitative and qualitative changes in the use of labour and capital, as well as environmental factors. Further research ensures obtaining a dynamic multi-factor model of sustainable development of the agricultural sector and determining the main mechanisms of influence on the levers of economic growth.

Assessment of the Development of Agriculture in Russia Based on the System of National Accounting

2021 ◽  
Vol 28 (5) ◽  
pp. 28-38
Author(s):  
A. P. Zinchenko ◽  
M. V. Kagirova
Keyword(s):  
Agricultural Development ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Value Added ◽  
National Accounts ◽  
Input Output ◽  
Labor Costs ◽  
Accounting Data ◽  
Gross Value Added ◽  
Intermediate Consumption

The growing interest both in our country and throughout the world in agriculture as an economic activity of strategic importance for ensuring food independence of the country determines the relevance of research on devising approaches to the analysis of its development using statistical methods. The authors’ approaches to assessing the development of agriculture in Russia based on data from the system of national accounts, including input-output tables, presented in this paper, make it possible to characterize the dynamics of the formation and use of output and gross value added (GVA) of the agricultural sector of the economy (including in the institutional context); assess the demand for each of the presented products within the industry and in the intermediate consumption of other industries; to identify structural changes in the composition of intermediate consumption in the production of goods; determine the trends and prospects for the development of agriculture on their basis.As part of the study, the authors disclosed additional analytical capabilities of statistical databases that include agricultural censuses and current accounting data in the system of macroeconomic indicators and allow for a more accurate assessment of the effectiveness of agricultural development. The calculated coefcients of direct costs ranged in the form of time series, analysis of the structure of intermediate consumption made it possible to identify the features of the development of the Russian agricultural sector and the directions for improving its economic and statistical analysis. The authors argue for the need to take into account the phenomenon of multistructure of agriculture in Russia to calculate the gross value added produced in the sector of peasant farms, subsidiary farms, separately small and large agricultural organizations, including holdings, with the obligatory comparison of the selling prices of their products used when calculating output and GVA. A proposal was made to include a table with additional information on labor costs and consumption of feed, fertilizers, electricity, and other basic resources in physical terms in the system of input-output tables by industry. 

scholarly journals Manufacturing Output Growth and Employment in Nigeria

2021 ◽  
Vol 10 (2) ◽  
pp. 111-119
Author(s):  
Adetunji Adeniyi
Keyword(s):  
Economic Growth ◽  
Manufacturing Sector ◽  
Job Creation ◽  
Value Added ◽  
Output Growth ◽  
Vector Error Correction ◽  
Vector Error ◽  
Gross Value Added ◽  
Temporal Relationships ◽  
Employment Elasticity

The Manufacturing sector of the Nigerian economy can perform better in job creation, particularly during the period of economic expansion, which did not happen in the last period of economic growth between 1981 and 2014. Consequently, it is important to understand the real relationship between growth and job creation in the sector during the period.  Therefore, this study investigated the employment intensity of gross value added growth in the sector during the period of growth, using Vector Error Correction Model (VECM) with a view to providing useful statistics to facilitate policies for the development of sectoral employment strategy during the next cycle of economic growth. Previous studies have either used descriptive statistics or less robust econometric models applied to aggregate data of shorter series and did not explore the inter-sectoral relationship effect. The estimated employment elasticity of gross value added in the sector was not significant at 95 per cent confidence level, and can, therefore, not be relied upon for pin-point policy. However, the inter-sectoral and inter-temporal relationships provided significant estimates, indicating that such relationships should be taken into account in designing and developing sectoral employment strategy for the manufacturing sector. There is future scope for the extension of research to cover periods of recession, as well, for example, post COVID-19.

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