Structural Convergence between African Countries: Empirical Evidence

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.

Modeling the productivity of intensive and super-intensive apple orchards in the midland of Russia

It is known that the main trend in the development of modern world gardening is the creation of intensive and super-intensive gardens, and the degree of intensity of the garden increases with an increase in the number of trees per unit area (compaction of tree layout). The paper considers the patterns of productivity of intensive apple orchards during the reproductive cycle depending on tree planting density. The paper presents the models of apple tree productivity in intensive and super-intensive orchards representing regression equations approximated by polynomials of 2 and 3 degree with determination coefficients R2=0.97-0.99. According to the above models, a total yield of up to 516 ton/ha may be obtained in an intensive garden with a tree planting density of up to 1500 wood/ha for 18 years of commercial fruiting, a total yield of up to 790 ton/ha may be obtained in a super-intensive garden with a planting density of more than 9,500 wood/ha for 16 years of commercial fruiting (an increase in the total productivity of planted vegetation of more than 1.5 times). The models (dependencies) of development of industrial apple orchards of different planting scheme are obtained, approximated by sigmoidal logistic functions defining three stages of logistic yield growth at the beginning of garden development (“growing up”), having exponential, linear and hyperbolic nature respectively. Logistics trends of the relative yield of the garden and the relative productivity of trees were established, according to which an increase in the yield of industrial gardens due to an increase in planting density is accompanied by a decrease in the productivity of fruit trees.

Productivity Convergence and Divergence in Latin America, 1970-2014

The paper examines Latin American countries’ productivity growth levels and their convergence patterns utilizing nonparametric frontier approaches. Utilizing a sample of 17 Latin American countries for the period 1970-2014 it estimates various productivity indexes alongside with their main components. Moreover a convergence analysis is conducted estimating relative productivity convergence paths. The results suggest that over the period examined, countries’ productivity growth levels have contracted. We provide evidence that the implementation of the structural reforms of the 1990s do not appear to have driven Latin American countries to higher productivity levels. Moreover, the results do not render support to the productivity convergence hypothesis. On the other hand, some support was found for countries’ technological change levels, identifying three convergence clubs.

Identification of the Technology Frontier

The subject of this study is the innovation market. To understand the laws of its functioning, this article introduces the concept of a technology frontier. This is understood as the relative productivity of labor (relative to the technological leader – the United States), the achievement of which makes it justified for developing economies to move from large-scale borrowing of foreign new technologies to their development within the country. The purpose of the article is to determine the specified frontier, for which a simple econometric model based on international statistics for 61 countries is proposed. To improve the accuracy of the calculations, countries were clustered into two groups: advanced, for which the technology frontier has been crossed and their own developments of new technologies prevail, and developing, for which the problem of the technology frontier remains important. The current value of the technology frontier is in the region of 70% of labor productivity in the United States. The comparison with previous estimates shows that this value tends to increase, which creates additional difficulties for the transition of catching-up countries from the mode of borrowing to the mode of creating new technologies. Taking into account the technological frontier allows avoiding both an undue delay in the development of proprietary technologies as well as a premature transition to the creation of innovations while ignoring the possibilities of borrowing.

Nutritional and Functional Evaluation of Inula crithmoides and Mesembryanthemum nodiflorum Grown in Different Salinities for Human Consumption

The nutritional composition and productivity of halophytes is strongly related to the biotic/abiotic stress to which these extremophile salt tolerant plants are subjected during their cultivation cycle. In this study, two commercial halophyte species (Inula crithmoides and Mesembryanthemum nodiflorum) were cultivated at six levels of salinity using a soilless cultivation system. In this way, it was possible to understand the response mechanisms of these halophytes to salt stress. The relative productivity decreased from the salinities of 110 and 200 mmol L−1 upwards for I. crithmoides and M. nodiflorum, respectively. Nonetheless, the nutritional profile for human consumption remained balanced. In general, I. crithmoides vitamin (B1 and B6) contents were significantly higher than those of M. nodiflorum. For both species, β-carotene and lutein were induced by salinity, possibly as a response to oxidative stress. Phenolic compounds were more abundant in plants cultivated at lower salinities, while the antioxidant activity increased as a response to salt stress. Sensory characteristics were evaluated by a panel of culinary chefs showing a preference for plants grown at the salt concentration of 350 mmol L−1. In summary, salinity stress was effective in boosting important nutritional components in these species, and the soilless system promotes the sustainable and safe production of halophyte plants for human consumption.

Determining the Real Exchange Rate Equilibrium for Pakistan

The achievement of macroeconomic stability and sustained economic growth are the main targets of macroeconomic agents and policymakers. High volatility in Real Effective Exchange Rate (REER) is noticed while moving towards flexible Exchange rate regime. Three assessment methodologies are followed in the paper i.e. PPP approach, PPP approach adjusted for Penn effect and reduced form equation approach to gauge REER misalignment. VAR modelling suggest that, PPP holds for Pakistan and Penn effect is witnessed in the country for FY1980-FY12018. The determinants of REER, like “openness to GDP ratio, Govt consumption to GDP ratio, Long term Investment to GDP ratio, relative productivity and terms of trade” are responsible for depreciation in REER. While, worker remittances and FDI leads towards the REER appreciation in. It is indispensable to opt for the devaluation of PKR to gain export competitiveness, which may result in shrinkage of current account deficit. To increase the productivity of tradable items and to reduce the GOVT consumption of imported items are few steps to push REER towards equilibrium level. As per the state of art model the range of misalignment in REER is from -3.9% to 4.2% in Pakistan.

Environmental Taxes and Economic Growth with Multiple Growth Engines

We develop an endogenous growth model in which long-run growth is driven by three engines: private abatement R&D, expanding-variety R&D, and capital accumulation. We show that an environmental tax activates private abatement by directing researchers from the variety R&D sector to the abatement R&D sector, which helps the economy avoid the environmental disaster. Our results also show that the effect of the environmental tax on long-run growth is uncertain, depending mainly on the relative productivity between the two R&D sectors. If the abatement R&D sector is sufficiently productive, increasing the environmental tax will enhance the balanced output growth rate and social welfare.

Conflicting portrayals of remaining old growth: the British Columbia case

Old growth is disappearing globally with implications for biodiversity, forest resilience and carbon storage; yet uncertainty remains about how much exists, partly because assessments stratify ecosystems differently, sometimes obscuring relevant patterns. This paper compares portrayals of BC’s old growth forest stratified in two ways: by biogeoclimatic variant, as per policy, and by relative site productivity. Our analyses confirm provincial government claims that about a quarter of BC’s forests are old growth, but find that most of this area has low realized productivity, including subalpine and bog forests, and that less than 1% is highly productive old growth, growing large trees. Within biogeoclimatic variant, nearly half of high productivity forest landscapes have less than 1% of the expected area of old forest. Low productivity ecosystems are over-represented in protected forest. We suggest that the experiment of managing old growth solely by biogeoclimatic variant has failed, and that current forest policy, in combination with timber harvesting priorities, does not maintain representative ecosystems, counter to the intent of both policy and international conventions. Stratifying old growth by relative productivity within biogeoclimatic variant seems an appropriate method to portray ecosystem representation, potentially increasing the probability of maintaining ecosystem resilience.

Structural Change as a Modernization Process

This chapter analyses economic development through the lens of a newly developed index: the structural modernization index. This index combines two dimensions that have been widely invoked as prime drivers of economic development namely, structural change and technological catch-up. For each country, the index calculates the productivity gap with respect to the world frontier in activities that typically represent the modern sector of the economy and weights this relative productivity by the employment share of those activities in the total labour force. The index is calculated for a sample of 115 countries over the period 1960–2014. It is used to explore the relationship between structural modernization and the ability to escape poverty and middle-income traps.