Potential GDP and its factors assessment

The object of the study is the reserves of economic growth in the country on the example of Ukraine. One of the problems of such studies is the calculation of potential GDP, which is not observed, but is calculated on the basis of various methods. Also problematic is the choice of method/methods of calculating potential GDP and potential values of its factors. Any estimate of the potential value of a variable is based on one or more statistical relationships and therefore contains an element of uncertainty. In order to reduce uncertainty, 2 methods were used to determine the potential values of the components of GDP – the growth rate of employment, fixed capital and TFP (total factor productivity). The study used the methods of one-dimensional statistical filters Hodrick-Prescott and Baxter-King to estimate the potential values of GDP and the model of the production function to calculate potential GDP based on the potential values of its factors. The main reasons for the slowdown in Ukraine's GDP have been identified, the main of which is low capital productivity due to budget constraints. The second place in this ranking was taken by labor productivity, the last third – by TFP. Weak productivity and investment growth reinforced each other. Capital has the highest growth potential in Ukraine. Therefore, measures to stimulate capital investment, including in research and innovation and human capital, are important. Other factors that affect GDP through labor productivity and TFP are population aging, emigration, and tight lending conditions. To neutralize these factors, it is necessary to create new jobs, facilitate the conditions for obtaining loans by enterprises, stimulate advanced training and lifelong learning. The proposed approach to the separate calculation of potential values of GDP factors and their analysis find reserves for GDP growth. This provides the advantages of this method over other approaches.

Development of the digital oil and gas complex in Arctic areas of Russia

This article examines the issues of digital modernization of the oil and gas complex of Russia, the evolution of digital oil and gas technologies. The main results of research work in the field of creating digital technologies for preventing complications and accidents, transferring drilling data in blockchain format, monitoring the state of pipelines using magnetic tomography are briefly outlined. The digital modernization strategy is aimed at large-scale digitalization of oil and gas production facilities and lays a reliable basis for the growth of capital productivity of fields in the long term. The approach is based on improving the quality of management, analyzing the effectiveness of control actions when using an integrated model or a digital twin of the field. The integrated application of digital technologies for effective management is the basis for cost optimization, ensuring the transition to robotic control, and increasing the capital productivity ratio of key gas assets. These solutions are especially effective in regions with difficult natural and climatic conditions or undeveloped infrastructure, Arctic fields. The proposed integrated approach makes it possible to extend the periods of profitable exploitation of gas fields at the stage of declining production and complicated production conditions. By the end of 2025, the number of digital fields using technologies for processing Big Geo Data will exceed 10% of the total number of oil and gas fields in Russia.

ICOR Analysis of Gorontalo Province

Investment plays an important role as one of the regional economic drivers. Likewise, a various development success is determined by the quality of planning and accurate data. In general, the development planning is highly specified by an ability to provide financing sources scenario where one of which is investment as it is impactful in increasing economic growth rate and community welfare level intended.This research aims at determining ICOR value and investment needs estimate in Gorontalo Province and at determining sectors with a higher or lower capital productivity in Gorontalo Province. The research employs ICOR analysis to measure certain amount as a comparison between growth of capital (investment) with production. Through these indicators, the economic development planners can determine investments needed to increase the economy in compliance with the predetermined target. The research findings reveal that: 1) ICOR value from 2018 to 2020 is 0.29 on average and it is impacted by annual capital change (∆K) and output change (∆Y), 2) food industry sector in Gorontalo Province indicates a sufficiently low value of ICOR, and it is good due to the economic runs efficiently. Meanwhile, the chemistry and pharmacy industry sector shows massive capital productivity where a higher value of ICOR indicates capital-intensive technology use. Also, an ICOR-based sectoral investment projection signifies that the researchers set top three of future leading sectors in 2025 for investment projection in Gorontalo. They are food and plantation crops; trade and repair; and construction, 3) a stay-at-home policy urged by the government during the covid-19 pandemic has led to a significant change in community’s consumption style for basic needs such as water, electricity, gas, food, and medication.

Impact of Human Capital and Innovation towards Total Factor Productivity (TFP): A Case of Manufacturing Sector in Palm Oil Industry in Malaysia

Malaysian oil palm sector has contributed to the growth of gross domestic product (KDNK) by 37.9%, of manpower by a total of 40%, and of the total employment of agriculture sector by 22.1 million people in 2018 (DOSM, 2019). Furthermore, the exports performance shows that the palm oil production has increased from 180 thousand tons metric in 1965 to 27.86 million tons metric in 2019 (MPOB, 2019). The major importers of Malaysian palm oil include India, China, Pakistan, and the Netherlands. In 2016, India was the biggest importer (19.9 %), followed by China (10.1 %), Pakistan (6.4%) and Netherlands (5.5%). In addition to that, many oils are categorized according to the sources of oil and fat saturation which is produced globally (OWA, 2016). Palm oil register percent high by 28.0% compared with the oil other like oil bean soy (24.0 %), oil rapeseed (13.0 %) and spring sun (7.0 %), even more than the oils and fats from sources animals that only 25.0% only (OA, 2016). Although palm oil- based industries in Malaysia depend on inputs, especially human capital and technology to determine the overall performance and productivity, the sector is yet to use technology that depends on low-skilled workers. Thus, to improve the industries, the study was conducted to analyze the effects of the workers skills and technology on the total factor productivity (TFP). Keywords: Human Capital, Productivity, Palm Oil, Data Envelopment Analysis, Panel Data

Productivity Growth and Infrastructure-Related Sectors: The Case of Mexico

This technical note examines the interactions between infrastructure and productivity growth in Mexico. To address this relation, we follow an approach that seek to tie down infrastructure productivity improvements in terms of the impact of particular types of infrastructure on particular sectors, thus providing the basis for informed decisions on investment priorities for economic growth. We have been able to identify significant relations between labor and capital productivity improvements, or capital deepening (i.e., investment) in infrastructure-related sectors and labor productivity improvements in other sectors. Sectoral infrastructure priorities can be found in the transport and energy sectors, broadly defined, with effects that have regional differences. The nature of our results points to complementary policies and the need to improve the regulatory compact for infrastructure in Mexico. Our results recommend special attention to the regulatory/competition policy approach in transport, and the electricity wholesale market.

Contribution of Green Productivity to the Success of Business Performance: A Literature Review

Green Productivity is integrated for enhancing the profitability of the organization by improving productivity and environmental performance for overall socio-economic development. It considered the win-win situation of uplifting the quality of life in the form of generating profits to the business and considering the less impact to the environment from the business processes which leads to the greener business practices. The objective of this research paper is to review the existing literature about the practical application of the GP to identify the business areas which are influenced by the GP methodology. This is Qualitative research in nature. Nineteen existing research papers from reputed Journals are considered for the study. The content analysis method is used to analyze the research papers. The analysis results highlighted that GP methodology could be applied to any organization regardless of nature and size, and it will generate a significant contribution to the overall profitability of the organization by creating a competitive advantage in the market. GP will contribute to the organizations in two areas, (1) Productivity through reducing manufacturing cost, cycle time, risk, waste and increasing competitive advantages through social productivity, labour, and capital productivity of the business, (2) The environment in the form of reducing waste with many environmental concepts such as 3R, 5R Concepts and releasing less carbon emission to the environment. It is clear that this GP Methodology practice will enhance the development of socioeconomic and sustainability, which uplifts the living standard of all living beings in the natural environment.

A Literature Review of Contribution of Green Productivity to the Success of Business Performance

Green Productivity (GP) is integrated for enhancing the profitability of the organization by improving productivity and environmental performance for overall socio-economic development. It considered the win-win situation of uplifting the quality of life in the foam of generating profits to the business and considering the less impact to the environment from the business processes which leads to the greener business practices. The objective of this research paper is to review the existing Literature about the practical application of the GP to identify the business areas which are influenced by the GP methodology. This is Qualitative research in nature. Twenty existing research papers from reputed Journals are considered for the study. The contents analysis method is used to analyse the research papers. The analysis results highlighted that GP methodology can be applied to any organization regardless of nature and the size of them and it will generate a significant contribution to the overall profitability of the organization by creating a competitive advantage in the market. GP will contribute to the organizations in two areas 1. Productivity through reducing manufacturing cost, cycle time, risk, and waste as well as increasing competitive advantages through Social productivity, Labour, and Capital productivity of the business. 2. The environment in the foam of reducing waste with many environmental concepts such as 3R, 5R Concepts and releasing less carbon emission to the environment. It is crystal clear that this GP Methodology practice will enhance the development of Socioeconomic and sustainability which uplifts the living standard of all living beings in the natural environment

Indirect Estimation of the Development of Capital Productivity in the Regions: The Case of Poland

This study introduces a new (adopted) method of indirect estimation of the development of the productivity structure in the regions, which at the same time allows estimation of the contribution resulting from changes within the capital factor. Its theoretical background is built on the principles of growth accounting. Within this framework the study employs an arguable assumption of analogy in development of multifactor productivity of industry between the national and regional level. The literature review and empirical results shows, however, that such an assumption may be correct in some cases. Therefore, the article enhances the existing productivity analysis capabilities at the regional level. Within the aim, this study verifies the potential of applicability of proposed method on the regions of Poland. It uses the measure of symmetric mean absolute percentage error (SMAPE) to evaluate the accuracy of method proposed against actual values and the results of two other frequently used methods for disaggregation of capital among the regions in a country. The results indicate that the new method should be more accurate than the methods of regional decomposition of capital-based on value added, and flows investment accumulation. In fact, it seems to be quite correct especially in the industries of wholesale & retail trade, transport & storage, real estates, health & social work, and manufacturing. On the other hand, it is likely incorrect in the industries of information & communication activities, finance & insurance, and administrative & support activities. In general, the method seems to be more accurate for larger industries and vice versa. Higher precision is also observed for industries where capital demand is clearly increasing. Similarly, the method is more accurate in industries where none of the regions are more specialized and vice versa.

Productivity of Unorganised Manufacturing Enterprises in India

Since unorganised manufacturing enterprises (UMEs) provide employment to a huge mass in India therefore its growth and productivity is a matter of concern. Thus, through this paper the growth and productivity of Indian UMEs are shown with the help of NSSO Data (67th and 73rd Rounds). This paper reveals that the number of UMEs increased significantly in India during 2010-11 to 2015-16. The average productivity of labour increased over time. Using the Cobb-Douglas production function it was further found that the marginal productivity of labour is much higher than the marginal productivity of capital. Productivity is found to be positively and significantly influenced by male ownership, own account enterprises, enterprises do not face problem, expanding status of growth, government assistance, registration of enterprises and capital intensity.

Three decades of export competitiveness literature: systematic review, synthesis and future research agenda

PurposeThis review has two purposes: (1) to systematically analyse the literature on export competitiveness (EC) and (2) to provide an overview of various determinants and the methodological trends in the subject field, making it possible to develop a roadmap for future researchers.Design/methodology/approachThe systematic literature review (SLR) method was employed in this paper. The authors have covered three decades of research articles published in Scopus listed journals between 1991 and 2020. The determinants of EC are synthesized and widely used theories, and methodologies are identified and classified. The authors have also provided directions for future research.FindingsThe key determinants identified are labour and capital productivity, labour costs, exchange and real effective exchange rate (REER), domestic gross domestic product (GDP), trade liberalization and barriers. The findings reveal that EC is now a scientific measure, since the studies in this subject field have moved towards measuring EC and its determinants.Originality/valueThere has been no comprehensive review in this area exploring the theories, context, constructs and methodologies until now. Therefore, this review provides deep insights into the topic and also offers a unified picture of the subject field.