Labour Drivers in the Agricultural Sector of the European Union

The social role of the farms is, especially, relevant in the rural areas where the socioeconomic problems are, often, more visible. In this perspective, this study aims to investigate the interrelationships of the labour input with other variables inside the farms and assess how the sector may create more employment in a sustainable way. For that, the labour input was, first, correlated with other farm variables and after analysed through factor analysis approaches and cross-section econometric methodologies, considering as basis the Cobb-Douglas and Verdoorn-Kaldor models. The main findings highlight relevant insights to improve the social dimension of the European Union farms. The labour input growth rate is positively influenced by the total output growth rates and negatively impacted by the total productivity growth. The effects from the investment and from the subsidies are residual or not significant.

Modelling of natural growth with memory effect in economics: An application of adomian decomposition and variational iteration methods

The power-law memory effect is taken into consideration in a generalisation of the economic model of natural growth. The memory effect refers to a process's reliance on its current state and its history of previous changes. However, the study that focuses on natural growth in economics considering the memory effect with fractional order-linear differential equation model is still limited. The current investigation seeks to solve the natural growth with memory effect in the economics model and decide the best model using fractional differential equation (FDE), namely Adomian Decomposition and Variational Iteration Methods. Also, this study assumes the level of consumer loss memory during a certain time interval denoted by a parameter (α). This study showed the model of loss memory effect with 0 < α ≤ 1 given a slowdown in output growth compared to a model without memory effect. Besides that, this study also found that output Y(t) is growing faster with the Variational Iteration method compared to the Adomian decomposition method. Also, using graphical simulation, this study found the output Y(t) is closer to the exact solution with α=0.4 and α=0.9. In conclusion, this study successfully solved natural growth with memory effect in economics and decided the best model between FDE, namely Adomian decomposition and Variational iterative methods using numerical analysis.

Toward economic growth: Income distribution in the era of the COVID19 pandemic in east Kalimantan province

The technological era is a dilemma in the economic growth of a region. The policy of economic development, at least, contains two main objectives to be achieved, namely growth and equity. These two goals are usually in conflict with each other. That is, if growth reaches a high level, then equity reaches a decline so that the conscious effort to create a balance is one of the goals of development. Growth to increase income per capita is an effort in progress to increase output (through the use of factors of production with or without technological change) continuously in the long run, which is always associated with population growth. Because with high output growth coupled with high population growth, the growth of output will become a new problem, so efforts to overcome unemployment are also a crucial part of development. Equitable distribution of fixed income is one of the critical issues faced by an economy. Doing a real business venture so that the rent is more evenly distributed is an essential responsibility of an economic system. The development of an economy will cause changes that are not always good due to the use of labor. This sometimes causes the number and level of unemployment to increase, along with population growth. Finally the paper considers whether there is any evidence of government expenditure, Private investment and poverty rates on Income distribution in East Kalimantan Province is Significantly influenced but Economic is not Growth.

Economic impact of unemployment and inflation on output growth in Bihar during 1990–2019

The effects of unemployment and inflation on output growth based on time series data of Bihar (India) over the period 1990–2019 has been examined in this paper. The physical capital expansion in terms of infrastructure development along with skill development to provide employment opportunities to the youth appears to be the major determinant of boosting the potential productivity of physical and human capital and affecting positively the economic growth. The results indicated that there are significant and certain benefits from the increased supply and improvement in the quality of physical capital which increases labor productivity as well as investment in human capital. Thus, it is recommended that Bihar makes large-scale investments in infrastructure and skill development and carry-on renewal at opportune moments to keep steady the positive trend of economic growth over the years. The investments may be in terms of mechanized technologies, supporting infrastructure and appropriating the knowledge relating to their management; and adopting new technologies and practices involving better innovation in agriculture, forestry, manufacturing, and relevant skill development to sustain the growth of value-added.

How production networks amplify economic growth

Technological improvement is the most important cause of long-term economic growth. In standard growth models, technology is treated in the aggregate, but an economy can also be viewed as a network in which producers buy goods, convert them to new goods, and sell the production to households or other producers. We develop predictions for how this network amplifies the effects of technological improvements as they propagate along chains of production, showing that longer production chains for an industry bias it toward faster price reduction and that longer production chains for a country bias it toward faster growth. These predictions are in good agreement with data from the World Input Output Database and improve with the passage of time. The results show that production chains play a major role in shaping the long-term evolution of prices, output growth, and structural change.

Measuring and Analyzing the Impact of Investment Spending on Achieving Growth for the Real Iraqi GDP

The study aim to measurement Investment spending in economic activity Via its effect on the production of sectors of the national economy, and due to the fact that investment spending is linked to public revenues, especially petroleum, because of the economy’s direction, its direction has made investment spending allocations fluctuate with the fluctuation of these revenues and then Its weak impact on the real output in Iraq and then a weakness in achieving the real economic growth aims that are expected from this spending, as the research reached a significant weakness in the impact of investment spending on the real output with and without petroleum, as the increases did not match The big investment spending with real output growth with and without petroleum. which indicates weak efficiency and performance of the national economy in achieving the required real economic growth and a lot of use of the policy of transfer between expenditures as well as the lack of a long and short-term balance relationship between investment spending and real output with and without petroleum.

The Impact of China, the EU, and the US on Africa through the Lens of Output Growth and FDI

This study uses a vector of FDI-weighted real gross domestic product (GDP) growth rates as proxy for the output growth of China, the European Union (EU), and the United States (US). Using a two-stage least squares estimator over a sample of 42 sub-Saharan African countries for the period 2003–2012, our findings reveal that only the EU’s output spillovers have a significant impact on sub-Saharan Africa’s growth: a 1% increase (decrease) in the EU’s output growth can lead to a 0.02% increase (decrease) in sub-Saharan Africa’s real GDP per capita. The results obtained from the panel threshold regression analysis indicate that this linkage is not conditional on the availability of natural resources, unlike the output spillovers from the US and China, which bear a positive impact only in countries with resource rents of at least 24.3% and 24.1%, respectively. These are mostly oil-abundant countries, implying that China’s motive for natural resources in Africa is not different from that of the US. While the resource rents threshold level of 24.3% can serve as the benchmark for natural resource management policies to benefit from both China and the US output spillovers, a diversified FDI is also encouraged to minimize the risk associated with the resource growth paradigm.

Economic complexity and price competitiveness dependence: empirical evidence using panel models

Purpose As economies with high economic complexity and productive capabilities may easily adapt their productive structure due to product differentiation and innovation, the central variable of competitiveness for these countries is the product quality, not price. On the other hand, the price can be an important determinant of less complex countries, and hence, real exchange rate (RER) misalignments may have long-term impacts. This paper aims to empirically assess variations in the magnitude of the impact in RER misalignments on output growth subject to countries’ economic complexity. Design/methodology/approach The estimation technique used is the generalized method of moments-System estimator as this method is robust to reverse causality. Heterogeneous regressions using interaction models are undertaken to analyze to what extend promoting economic complexity can reduce price competitiveness dependence and allow countries to grow faster without relying on cost competitiveness. Findings Estimates show that economic complexity (which measures technological and productive capabilities) determines cross-country differences regarding the effects of RER misalignments on countries’ long-term growth rates. The results suggest that exchange rate devaluations may not be effective for countries at the top end of the technological ladder while an overvalued RER may damage the long-term growth rate of countries with low levels of economic complexity. Originality/value This paper contributes to the literature by empirically investigating the impact of RER misalignments in countries with distinct technological and productive capabilities based on the recent developments of countries’ economic complexity analysis. It investigates whether more diversified and complex economies are less sensitive to RER misalignments as they can adapt their production, undertake other tasks, create new products and increase the quality of products they produce. Less complex economies, on the other hand, are less capable of innovating because it demands productive capabilities they do not have, and hence, they are more dependent on their current export basket.