Capital Productivity Research Articles

Tertiary education as social policy: Comparative theoretical perspectives

Abstract In this paper, we conduct an in-depth review of and commentary on two frameworks for international comparative work focused on education systems and skill formation – specifically, welfare regime and production regime approaches. We focus on how tertiary education is understood to function relationally within a national policy repertoire and explore the interplay between education and economic systems. Whereas the welfare regime literature illuminates why some regimes are conducive to human capital production and create more equitable educational and labour market opportunities, the production regime literature focuses on the ways that actors such as government, educational institutions, and unions optimise skill formation. These two theoretical perspectives offer both rival and complementary explanations of varying patterns in public investment, differentiation in education systems, and participation rates in tertiary education across countries. Our analytical account provides useful insights for understanding different national education policies and framing future research, including informing these perspectives with the more recent theoretical contributions of the social investment approach. In relation to changing conceptions of the knowledge economy, education, skill development, and the nature of employment, these two theoretical perspectives continue to provide useful conceptual lenses to examine the education/skill /employment nexus.

The supply chain capitalism of AI: a call to (re)think algorithmic harms and resistance through environmental lens

ABSTRACT Artificial Intelligence (AI) is woven into a supply chain of capital, commodities and human labour that has been neglected in critical debates. Given the current surge in generative AI – which is estimated to drive up the extraction of natural resources such as minerals, fossil fuels or water – it is vital to investigate its entire production line from a critical infrastructural perspective. Drawing on the supply chain capitalism, a concept coined by Anna L. Tsing in 2009, this paper contributes to critical AI studies by investigating the structure of AI supply chains, taking into account the mining, electronics, digital and e-waste industry. This paper illustrates how the supply chain capitalism of AI is precipitating geographical asymmetries connected to contested struggles in México by focusing on a key element of these chains: data centres. In times of climate emergency, this paper calls to reconsider algorithmic harms and resistance by investigating the entire capitalist production line of the AI industry from critical and environmental lens.

Unlocking public infrastructures? State aid and the common European data space

EU state aid rules are part of the EU’s competition policy, a form of soft law developed to nudge states away from public investments in many areas. Rules were used to impose that market competition holds a privileged position, and that enacting social, political, or economic benefits that might stifle competition requires a complicated legal and political negotiation process between the European Commission, Member States, and private companies. Nonetheless, many strategic projects or situations in recent years led to significant state aid. The Commission utilised a variety of means to encourage both private and public investments in EU based digital infrastructure that is critical for public media services and for unified European data space. Despite EU’s balancing act between the private and public interests, business interests are dangerously capturing the development in the media data space. To grasp the social and economic contribution of publicly financed productive activities, we approach public broadcasting systems as producers of public wealth of a peculiar kind whose activities and goals are defined by their public purpose, rather than the imperatives of capital and profitmaking. Unifying data spaces with too many design decisions conceded to capitalist production runs the risk of further neglecting social foundations of member states. We argue that the desired digital transformation would be more successful if it moved towards affirmative approaches to public services and public infrastructures, recognising the historical and contemporary contribution of the production of public wealth and public media in member states.

Labor supply effects of a universal cash transfer

I investigate the labor supply effects of the introduction of an exceptionally large unconditional cash benefit. I exploit the unique design of the child benefit program in Poland to identify the effects of the monthly transfer in a difference-in-differences design. The transfer had no short-term effects but caused sizable negative medium-term effects on household labor supply. In the medium run, population estimates indicate that for every extra 100 dollars in monthly child benefit transfers households received, they reduced their after-tax earnings by 25 dollars, spent 32 dollars on consumption, and saved 43 dollars. These negative labor supply effects are much larger and much more precisely estimated among households with low socioeconomic status. Additional evidence shows that the program had a positive impact on investments in human capital and home production efficiency.

Financial Mechanism for Sustainable Development of the Marine Economy with Respect to Technology, Digitalization, and Low Carbonization

This study explores the impact of regional financial development on the sustainable growth of the marine economy across 14 coastal cities in Guangdong Province from 2004 to 2022. To assess this, a comprehensive index system was developed to measure marine economic sustainability, incorporating key factors such as capital investment, production efficiency, and processing and trade. The findings indicate that financial development significantly enhances the sustainable growth of the marine economy. However, the interaction between financial development, technology digitalization, and low-carbon initiatives leads to diminishing returns in terms of sustainability. Through the use of the Moran index and the spatial Durbin model, the analysis reveals a dual outcome: while financial development positively influences a city’s marine economic sustainability, it exerts negative spillover effects on neighboring cities. Previous studies have primarily focused on the relationship between financial development and the marine economy at the national or provincial level, leaving a gap in understanding these dynamics at the city level. Furthermore, the coordination between financial development and marine economic sustainability across cities within the same region remains largely unexplored. This study addresses these gaps by investigating city-level dynamics and examining intercity coordination between financial development and marine economic growth. The results offer a novel perspective for policymakers, highlighting strategies to balance regional financing for the marine economy with targeted investments in science, technology, digitalization, and low-carbon initiatives. This approach seeks to optimize resource allocation and mitigate potential substitution effects. Ultimately, this research contributes to a more nuanced understanding of the complex interplay between financial development and the marine economy at both city and regional levels.

Technological Progress as a Catalyst for Energy Efficiency: A Sustainable Technology Perspective

Enhancing energy efficiency through sustainable technological progress is imperative for pursuing sustainable development, particularly in developing countries where economic growth is strongly linked to higher energy consumption. In Tunisia, an open and developing economy, fossil energy consumption can be reduced without compromising economic growth by focusing on diminishing energy intensity. This study investigates the effects of technological progress on the overall energy intensity in Tunisia from 1980 to 2019, examining the role that technological advancements may play in attaining sustainable development goals. This study is based on a growth accounting model that uses time-series analysis and a cointegration estimation approach. Our empirical results suggest the presence of a long-term connection between the variables. The attainment of enhanced energy efficiency is contingent on the growth rate of technological progress, which should exceed capital and labor productivity. The results reveal that the net impact of technological advancements is estimated at -0.0163, which signifies that aggregate energy intensity tends to decrease by an annual average of 1.63% in the long term. These findings underscore the need for developing economies to restructure their energy policies and support sustainable technological initiatives and green entrepreneurship. Developing countries can reduce their energy intensity while boosting their economic growth by fostering technological innovation. This study demonstrates how technological progress and green entrepreneurship can be leveraged to enhance energy efficiency and drive sustainable development in developing nations.

Shaping inequality and intergenerational persistence of poverty: Free college or better schools?

We evaluate the aggregate, distributional and welfare consequences of alternative government education policies to encourage college completion, such as making college free and improving funding for public schooling. To do so, we construct a general equilibrium overlapping generations model with intergenerational linkages, a higher education choice as well as a multi-stage human capital production process during childhood and adolescence with parental and government schooling investments. The model features rich cross-sectional heterogeneity, distinguishes between single and married parents, and is disciplined by US household survey data on income, wealth, education and time use. Studying the transitions induced by unexpected policy reforms we show that the “free college” and the “better schools” reform generate significant welfare gains, which take time to materialize and are lower in general than in partial equilibrium. It is optimal to combine both reforms: tuition subsidies make college affordable even for children from poorer parental backgrounds and better schools increase human capital thereby reducing dropout risk.

Effects of Food Insecurity on Health Conditions among Women and Children of Orang Asli Kintak in Pengkalan Hulu, Perak, Malaysia

Growing evidences have shown high overlap between food, well-being and forest conservation. Such circumstances are being faced by indigenous communities, in Peninsular Malaysia that are becoming more vulnerable due to health problems related to malnutrition. In this paper, we address effects of food insecurity and health conditions among Orang Kintak mothers and children in Pengkalan Hulu. A total of 35 mothers and 63 children were sampled using quantitative approach. Using (WHO) reference standards, main finding for BMI classification of women shows (20%) underweight, (60%) normal weight and (20%) obesity. Meanwhile, (86%) children were under weight and only (14%) are of normal weight. Understanding the health problems faced by Orang Kintak following unbalanced and nutritional diet are crucial in order for local authorities and communities to take critical action, such as to set up a basic food source production program in order to avoid over dependent on purchased food sources. Next, increase the productivity of human capital by encouraging involvement in the economic, education and health sectors. In general, policy-makers need to take into account indigenous knowledge, challenges and beliefs system when making a strategic decision so that it is beneficial and suitable for the planned strategy to be successful.

Socio-economic Development and Carbon Productivity: A Panel Data Analysis of the World’s Largest Carbon-Emitting Countries

AbstractAs global concerns about climate change intensify, assessing the environmental efficiency of production processes through carbon productivity has become increasingly important. This study examines the impact of socio-economic development on carbon productivity in the top 18 CO2-emitting countries, which contribute approximately 82% of global CO2 emissions, over the period 1990–2019. Using a class of econometric tests to address heterogeneity and cross-sectional dependence, we employ the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model for final estimation, ensuring robustness with Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimations. The empirical findings reveal that GDP per capita, Trade, and FDI increase carbon productivity while energy consumption and urbanization curtail carbon productivity. The country-specific effects indicated that 83% of the sample countries exhibit positive relationships between socio-economic development and carbon productivity, suggesting that these nations can serve as models for effective low-carbon policies. Moreover, the results demonstrate bi-directional relationships for GDP per capita, FDI, and energy use with carbon productivity and uni-causal relationship for trade and urbanization. The study highlights the need for implementing stricter regulations to improve energy efficiency and promote the adoption of renewable energy sources such as wind, solar, hydro, and nuclear power. Additionally, countries should incentivize green technology investments through tax breaks and subsidies, enhance international trade agreements that support the exchange of clean technologies, and develop sustainable urban planning initiatives to mitigate the negative impact of urbanization on carbon productivity.

Possibilities of Changes in Energy Intensity of Production Depending on the Scale of Farm Investments in a Polish Region

The purpose of this paper was to analyze the possibility of changes in energy intensity of production in the context of farm investment scale. The empirical section relies on unpublished FADN microdata. The study answers the question of whether investments and fixed capital growth can contribute to improvements in environmental performance of agricultural production. As it turns out, the group of farms with the greatest amount of investments saw an increase in energy consumption costs, though at a much slower rate than growth in production value. As a result, there was a drop in energy intensity of production, defined as the ratio between energy costs and production value. These findings corroborate the hypothesis advanced in this study, namely that upon reaching a sufficiently large amount of investments, farms can become capable of reducing the energy intensity of their production activity. Hence, higher levels of capital productivity are attained when the farms invest in more energy-efficient fixed assets. Conclusions cannot be universal, as the analysis involved a portion of selected farms. However, the research indicates a trend in the study of energy intensity of production depending on the scale of investment and the validity of the investment comprehensiveness approach. These conclusions provide a basis for recommendations for an agricultural policy which should include support for investments that are large and comprehensive (in relation to the farm’s assets) and go beyond the simple renewal of assets. Therefore, in its investment-oriented measures, the agricultural policy should take the innovativeness (including energy efficiency) criterion into account.

The dual economics in the labour process: managerial contradictions and indirect control

One of the greatest impacts of Braverman’s Labour and Monopoly Capital is the discovery of a ‘control imperative’ within the capitalist production process. Whereas his equation of capitalist domination and Taylorism has been heavily criticized early on, the capabilities of the expanded use of digital technologies at the workplace have raised the question of whether a Taylorist mode of control is on the advance once again. The article challenges this perspective by addressing managerial problems that go beyond the problem to transform labour power into actual labour. Taking up Sohn-Rethel’s theory of ‘dual economics’, we argue that the necessity to reconcile contradictory requirements of the ‘economics of the market’ and the ‘economics of production’ poses an equally crucial challenge for management. Whereas that ‘problem of reconciliation’ remained latent in the Fordist era, tensions between the two logics of economics have now increasingly become a problem to solve within the course of controlling the labour process. Drawing on our own research on ‘the inner marketization of the firm’ over the last 15 years, we discuss ‘indirect control’ as a mode of control that precisely addresses the problem of reconciliation and considers recent changes in the course of digitalization. On the basis of our empirical findings, we describe the contradictory forms of activating and restricting subjectivity in the digital workplace and its implications for the legitimation of managerial power and capitalist domination.

Model of Spatial and Sectoral Development of Regions on the Basis of Interregional Interaction

The article is devoted to the study of the problems of spatial and sectoral development of regions on the basis of interregional interaction. The main scientific research within the framework of the spatial approach carried out since 2000 is presented. It has been shown that the work of domestic modern scientists is focused on finding spatial and sectoral priorities for building effective models of mutually beneficial cooperation between the regions of the country. On the example of the Republic of Buryatia and the Trans-Baikal Territory (as regions with positive economic complementarity), an assessment of the localization coefficient of the type of activity and the per capita production coefficient was carried out. The main problems and threats similar to the analyzed regions are presented, including: relatively low growth rate of the average per capita gross regional product in comparison with the average Russian level; relatively low investment attractiveness and an unfavorable institutional environment; incomplete use of production facilities; and low efficiency of realization of economic potential. Spatial and sectoral priorities have been identified; a model of mutually beneficial interregional interaction between the Republic of Buryatia and the Zabaykalsky Krai was built, ensuring the growth of the economies of integrating regions. It was concluded that the territorial division of the Russian Federation into macro-regions makes it possible to consider all possible vectors of interregional interaction from the standpoint of effective implementation of the synergistic potential of their spatial and sectoral development.

Artificial intelligence as a core of the new industrial revolution: prospects and limitations

The purpose of the article is to define prospects and limitations of artificial intelligence as a core of in the new industrial revolution. The definition of the concept of AI in the scientific community remains the subject of heated debate. At the same time, in the regulatory and legal plane, a trend is being formed towards unification of the concept of AI. Based on the analysis conducted and literary sources, the following prospects for AI can be identified on theoretical and practical levels. On theoretical level: (1) alienation of tacit knowledge from the individual (employee and entrepreneur); (2) optimization of the planning system; (3) revision of the socialist-calculation debate; (4) decreasing information asymmetry. On practical level: (1) formation of new products and markets; (2) increasing labor and capital productivity; (3) massive creation of new jobs; (4) optimization of business processes; (5) opportunity for rapid growth for small businesses and startups. Limitations: (1) long-term structural unemployment; (2) inflated expectations from AI and, as a consequence, the possible formation of a speculative bubble in the global stock market; (3) energy consumption of AI; (4) outdated pre-AI corporate culture and regulatory environment. Further improvement of AI (including the transition from AI to AGI) and the expansion of its use can make a significant contribution to solving problems related to economic calculation and minimizing information asymmetry, and therefore optimizing transaction costs in the economy. AI, certainly acting as a locally useful tool at the level of individual enterprises and organizations, causes the acceleration of attracting funds to the stock market, which can lead to the formation of a bubble on global level. If this bubble bursts, expectations about the economic efficiency of AI will be revised, and some AI-related companies will experience significant margin reductions (perhaps losses and bankruptcies). But this, in turn, will initiate the next stage of AI development, will accelerate its transition from the current narrow specialization to the creation of full-fledged general artificial intelligence (artificial general intelligence), which has a greater potential to change the economy at all levels. As a result, AI will become established as the core of the new industrial revolution.

Effects of public procurement on corporate total-factor carbon productivity: evidence from China

Using balanced panel data for listed Chinese industrial firms from 2016 to 2021, this study examines the effect of public procurement (PP) on corporate total-factor carbon productivity (CTFCP) and the related mechanisms. The results show that (1) there is a positive correlation between PP and CTFCP. (2) PP exerts a more pronounced incentivizing effect on CTFCP for state-owned enterprises, larger corporations, and those with weaker financing constraints. (3) We decompose CTFCP into technological progress (TECH), pure technical efficiency (PTE), and scale efficiency (SE) and find that PP improves TECH and PTE, and the effect differs according to firm ownership, scale, and financing constraints. (4) PP promotes CTFCP through labor productivity (LP), capital productivity (CP), and corporate green innovation (CGI) while the mediating role of environmental productivity (EP) is not significant. This study contributes to theoretical discourse on PP’s influence on CTFCP and has practical implications for PP agencies and enterprises.

"I Saw and Felt the Class Lines": Class Divides, Forced Sterilization, and Literary Form in Meridel Le Sueur's The Girl

Abstract: This essay examines how Meridel Le Sueur's novel, The Girl , censures Depression-era eugenic sterilizations via both the story it tells and the forms it employs. Arguing that the text works to expose the imbrication of capitalist production and sexual reproduction, the essay explores how the narrative attends to labor on two fronts: labor as work and labor as childbirth. It also considers how and why Le Sueur eschewed influential leftist writer and editor Mike Gold's precepts for proletarian realism and instead pioneered what I term a running style.

COVID-19 and beyond: economic outcomes in Republican vs. Democratic States

ABSTRACT The policy responses by state and local governments and reactions by individuals to the outbreak of the COVID-19 pandemic were wide-ranging across the US, often falling along the nation’s political divide. We examine whether Republican states performed better economically, both during the year of the COVID-19 recession and the two years following the recession. We find stronger employment and population growth and smaller increases in unemployment during the COVID-19 recession year in Republican states, though we also find lower per capita income and productivity growth in Republican states during the year of the COVID-19 recession. The employment growth and unemployment advantage in Republican states dissipated during the recovery from the COVID-19 recession such that there was not any longer-term advantage. We compare the COVID-19 and Great Recession years and the periods preceding each recession. The population growth advantage in Republican states during the COVID-19 recession was evident in all expansionary and recessionary periods beginning in 2003, suggesting that the growth advantage was not related to different responses to COVID-19. We conclude that there was not a clear overall economic benefit to the less restrictive COVID-19 policies and lower virus avoidance by individuals in Republican states, particularly in the longer run.

Economic Obligations in Implementing Corporate Social Policy of Large Entrepreneurial Structures in the Russian Federation

The subject of the article is economic obligations in the implementation of social policy of large business structures. The aim of the study is to describe and summarize the practices of implementing economic obligations in the corporate social responsibility of large business structures, supplemented by identifying its impact on the performance indicators of the enterprise. The object of the study is the public joint-stock company KAMAZ — the largest automobile corporation of the Russian Federation, one of the 20 leading world manufacturers of heavy trucks, promoting the positioning of a socially responsible enterprise, which is reinforced in practice by the company’s leading positions in thematic ratings. The methodological basis of the study was the concept of corporate social responsibility. Research methods include case study, correlation and regression analysis. As a result, the relationship between investments in human capital and labor productivity of personnel was proven. Social programs within the framework of internal corporate social responsibility affect the interest of employees in labor relations, increase motivation, level of involvement and activity of personnel. Furthermore, the analysis revealed and proved the connection between investments in sustainable development of the enterprise and revenue. Social security of employees and satisfaction with working conditions motivates them to work more conscientiously, increase the level of involvement and activity of personnel. Thus, the efficiency and quality of work performed by personnel increases, and this in turn has a positive impact on the financial results of the company.

Dynamic interactions between intellectual capital elements and productivity in the korean manufacturing industry: a panel vector autoregressive approach

Dynamic interactions between intellectual capital elements and productivity in the korean manufacturing industry: a panel vector autoregressive approach

Reimagining cities as self-organising capital creating ecosystems

Executives who lead cities face considerable challenges. Cities are complex ecosystems comprising myriad interacting systems, including information systems, which are vital for their operation and prosperity. Recognizing the value that information systems can offer, significant investments have been made to acquire these systems and make cities smarter or more intelligent. However, many smart city projects have failed to deliver on their promises due to a lack of clarity regarding their overall goals. Smarter or more intelligent towards what end? This article provides a systems-inspired approach to urban planning based on the premise that a city is a self-organising, capital-creating ecosystem composed of a city's administration and the many organizations within its domain. As the city's keystone entity, the administration's role is to create capital that enhances the capital productivity of other ecosystem members and nourishes innovators to boost capital creativity. A capital improvement budgeting framework can specify the allocation of all forms of capital to promote symbiotic connections between the various entities within a city. A city stack is designed to guide a city's administration in cooperating with its self-organising ecosystem. A research agenda to foster capital creation by city leaders is also outlined.

Financial equilibrium: An in-depth look at working capital management and productivity in manufacturing SMEs in Ecuador

The manufacturing industry is one of the main axes of the economy, which has been affected by the global economic crisis, so the competent authorities must address this problem by efficiently using the administration and management of resources. This research aimed to analyze working capital as a function of productivity in manufacturing SMEs in Zone 3 of Ecuador, one of the most important sectors worldwide. It has a quantitative approach, through the statements of financial situation presented in the SUPERCIAS of 112 SMEs in the years 2017 to 2020 that have remained constant over time, to carry out this process, data obtained from secondary sources were recorded by means of an observation sheet. Descriptive statistics, Spearman's Rho correlation, multivariate statistics, and principal component analysis, were used to perform a multiple linear regression model to detect the best year for predictions. The results showed that both small and medium-sized companies presented positive values with respect to the average working capital and productivity. On the other hand, for the year 2020 the two variables were affected due to the pandemic in this sector reducing their values, working capital and productivity have an average positive correlation; it was also determined that the year 2018 is the best year for predictions, being that the variables studied are financial indicators that contribute to the decision making in the companies.