Capital Productivity Research Articles

What Are the Roots of the Nation's Poor Health and Widening Health Inequalities? Rethinking Economic Growth for a Fairer and Healthier Future.

Health inequalities are differences in health between groups in society. Despite them being preventable they persist on a grand scale. At the beginning of 2024, the Institute of Health Equity revealed in their report titled: Health Inequalities, Lives Cut Short, that health inequalities caused 1 million early deaths in England over the past decade. While the number of studies on the prevalence of health inequalities in the UK has burgeoned, limited emphasis has been given to exploring the factors contributing to these (widening) health inequalities. In this commentary article I will describe how the Government's relentless pursuit of economic growth and their failure to implement the necessary regulatory policies to mitigate against the insecurity and health effects neoliberal free market capitalism (referred to as capitalism herein) causes in pursuit of innovation, productivity and growth (economic dynamism) is one key driver underpinning this social injustice. I contend that if the priority really is to tackle health inequalities and ensure health for all then there is an imperative need to move beyond regulation alone to mitigate the worst effects of capitalist production; the goal of the economy has to change to fully restore the balance between economic growth and public health.

FDI and industrial development in a mega-city region: a modelling study on the Pearl River Delta

ABSTRACT Foreign direct investment (FDI) and regional development are mutually interwoven phenomena. This paper introduces an analytical framework to investigate the interaction mechanism between FDI and regional industrial structure. This framework posits first that FDI generally has a significant influence on the industrial structure in the region concerned, specifically through intervening mechanisms such as capital supply, active selection, passive competition, product linkage, imitation and demonstration and employee flows. Secondly, the industrial structure, in turn, also affects FDI flows through mechanisms including market demand, factor supply and policy or institutional factors. Finally, there are bi-directional interactions; using a spatial interaction framework, the present study applies and tests a simultaneous equation model and a spatial Durbin model to analyse empirical data from 15 urban regions in the Pearl River Delta mega-city region (PRD) in China spanning the period 2005–2018. The key findings from this multi-scalar analysis are: (i) there are substantial interactive effects between FDI and industrial structure, with the rationalisation and upgrading of the industrial structure significantly promoting FDI inflows into the PRD; (ii) FDI inflows, in turn, contribute to the reinforcement and upgrading of the industrial structure in the PRD; and (iii) the interactions between FDI and industrial structure exhibit significant spatial-economic growth effects. We also find that moderator factors, including independent R&D level, market size, marketisation level, labour cost, infrastructure and government expenditure, have discernible impacts on FDI inflows and the rationalisation and upscaling of the industrial-economic structure in the area concerned. Finally, we note that, in our study, significant spatial dependence effects among urban areas inside the PRD area are observed and modelled. The discussion of the empirical findings leads to the identification of several important policy implications and lessons for regional development strategies from an FDI perspective.

Perbandingan Implementasi Sistem Bunga dan Sistem Bagi Hasil (Revenue Sharing)

This research discusses the use of capital production factors in an Islamic economic perspective with a comparative focus between the profit sharing system and the interest system. In Islamic economics, production activities are based on the motive and spirit of benefit, justice and blessing accompanied by limitations on Islamic economic principles. This research uses a descriptive qualitative method with a literature approach to find and explain choices of capital sources that are effective, efficient, and in accordance with the Islamic economic perspective in managing production costs and producer behavior in the context of Islamic economics. The research results show that the use of a profit sharing system is more effective in reducing total production costs compared to the interest system. Interest expenses in the interest system tend to increase total production costs which have an impact on reducing profits. The profit sharing system allows for a fair distribution of profits and losses between capital owners and capital managers, reduces the burden of production costs, and brings blessings in wealth management. Therefore, producers who adhere to Islamic economic principles tend to choose a profit sharing system rather than an interest system. This is because the profit sharing system is fairer and more effective in reducing production costs and is in line with Islamic economic values.

FACTORS AFFECTING THE INCOME OF THE SMALL FURNITURE INDUSTRY IN KENDARI CITY

The furniture industry has a fairly good development, so it will affect the income level of the craftsmen. The purpose of the study was to analyze the effect of capital, labor and total production on income. The research location is in Baruga District, Kendari City. The research focuses on the income of furniture industry entrepreneurs and the factors that influence it. The sample was selected using the census method, namely using the entire population as a sample. The sample was 36 wood industry entrepreneurs. The data analysis technique used is multiple linear regression. The results showed that 1) Jointly business capital, labor, and production on furniture business income in Baruga District, Kendari City have a significant effect on furniture business income. This is indicated by the test results Fhitung = 14.935 > ? = 0.05. (2) Business capital on furniture business income in Baruga Subdistrict, Kendari City has a significant effect on increasing the income of respondents' furniture business spread across Baruga Subdistrict, Kendari City. This is indicated by the results of the t test at the level of sign. 0.128 > ? = 0.05., (3) The number of workers on the income of the furniture business in Baruga District, Kendari City does not have a significant effect on increasing the income of the furniture business spread across Baruga District, Kendari City. This is indicated by the results of the t-test at the level of sign. 0.000> ? = 0.05 and (4) Furniture business production (x3) partially does not have a significant effect on increasing the income of furniture businesses scattered in Baruga District, Kendari City. This is indicated by the results of the t test at the sign level. 1,954 > ? = 0,05. This means that capital, labor, and total production simultaneously have a significant effect on the income of wood furniture industry entrepreneurs. Capital, labor, and raw materials partially have a positive and significant effect on the income of wood furniture industry entrepreneurs. This means that the greater the capital spent, the labor used and the amount of production owned, the greater the possibility of the amount of production produced, so that the income received is greater.

Human capital, unemployment, FDI, labor productivity and gross domestic product

Human capital, unemployment, FDI, labor productivity and gross domestic product

The social savvy entrepreneur: Lean start-up branding and social media for MSMEs

Micro, Small, and Medium Enterprises (MSMEs) are integral to Indonesia's economy, facing diverse challenges during the pandemic. This paper addresses the hurdles encountered by MSMEs, emphasizing the imperative of bolstering their branding and digital marketing competencies for enduring resilience. Despite their significance, many MSMEs, notably those in rural regions like Karangrejek Village, lack the requisite skills and resources for effective digital platform utilization, necessitating comprehensive support initiatives. Pandemic-induced issues encompass capital constraints and product marketing dilemmas, particularly evident among Karangrejek Village MSMEs. Post-pandemic recovery demands intensified aid to facilitate comprehensive revival, crucial for fostering local economic potential and community welfare enhancement. To address these challenges, a sustainable community service initiative will be launched, focusing on augmenting MSMEs' branding and digital marketing capacities. The program aims to stimulate optimal economic growth, especially in the post-Covid-19 era. It encompasses training sessions on leveraging digital media for product branding, expanding market reach through product marketing strategies, mentorship in product packaging design, and harnessing social media platforms. Through this initiative, MSMEs can fortify their resilience and contribute significantly to the community's economic prosperity.

Does capital efficiency influence economic growth in Bangladesh? Application of the Harrod-Domar model

PurposeThe main purpose of this paper is to analyse the influence of capital efficiency on the economic growth of Bangladesh using the Harrod-Domar (H-D) model.Design/methodology/approachWe use annual data from 1980 to 2019 for this paper. Three steps are taken in the data analysis. First, to check the existence of a unit root, we use the augmented Dickey-Fuller (ADF) test and to determine co-integration among the variables, we use the Johansen-Juselius co-integration test. Next, for long-run estimation, we use the dynamic ordinary least square (DOLS) estimator. The sensitivity of the long-run estimations is further checked by the fully modified OLS (FMOLS) and autoregressive distributed lag (ARDL) estimators. Lastly, we use the Granger causality test to determine the long-run causality among the variables.FindingsThe long-run co-integration test validates the co-integrating relationship among the variables. DOLS estimations reveal that the economic growth of Bangladesh is negatively associated with the incremental capital output ratio (ICOR), validating the notion that capital efficiency matters for achieving higher economic growth. On average, an increase in ICOR by a unit tends to reduce economic growth in the long term by 0.75 percent. Our results also reveal no significant relationship between savings and economic growth when the model is extended. Finally, causality results indicate unidirectional causality between ICOR and economic growth.Practical implicationsBased on the results obtained, we argue that the enhancement of capital productivity could bring efficiency because ICOR is an inverse of capital productivity. Since Bangladesh’s capital productivity is considerably low compared with other neighbouring countries, it is suggested that firms should gradually move towards technological advancement and enhance economies of scale, etc. in the long run. Moreover, policies in favour of continuous skill development programmes could be highly effective in increasing capital productivity given that capital follows a vintage structure.Originality/valueThis is the first paper to analyse the economic growth pattern of Bangladesh using the traditional H-D model by incorporating variables such as savings and ICOR and also by relaxing the assumption of time-invariant (i.e. fixed) data of the variables. Moreover, this paper extends the traditional H-D empirical model by introducing key indicators and time breaks for Bangladesh’s economy through a stepwise regression process.

The Appropriation of Fixed Capital: A Metaphor?

In the debate on the impact of digital technology on society, considering that digital technologies have profoundly changed the way we learn and communicate, and especially the “mode of production”, and remembering that this transformation takes place in an era of capitalist economic hegemony – the hypothesis often arises that the producer is transformed by the use of this machine. There is speculation that the user incorporates the instrumentality of the digital machine. Furthermore, when one recognizes that capitalist production develops its process of value creation by using cognitive labour power (and that this form of value production becomes more and more prominent) the technological incorporation of the cognitive cooperation of workers, seems to become ever more central to capitalist exploitation. Consequently, in the Marxist debate, people have started talking of an “appropriation of fixed capital” by the digitized worker and by the cognitive producer. This article asks: Are these simply metaphors? It discusses the relationship of living labour and digital machines. It stresses that digital machines do not determine society and human fate but can be appropriated by social struggles for the commons. It grounds the analysis of the digital in Karl Marx’s works on technology and fixed capital. It concludes that autonomous spheres of digital self-valorisation can be established through social struggles that aim at advancing social co-operation and the commons. Acknowledgement: This article was translated from Italian to English by Michele Ledda with editorial support by Christian Fuchs, David Chandler, and Sara Raimondi. The paper is based on a talk that Antonio Negri gave at the 7th ICTs and Society Conference “Digital Objects, Digital Subjects: An Interdisciplinary Symposium on Activism, Research & Critique in the Age of Big Data Capitalism” on May 20, 2017, at the University of Westminster in London. The video of this talk is available here: https://www.youtube.com/watch?v=htm5xwAl-kE The video of the commenting and Q&A session that followed can be watched here: https://www.youtube.com/watch?v=-smmdOz9gIU The manuscript of Negri’s talk was published as part of a conference volume. It is reprinted based on a Creative Commons licence. Acknowledgement: Negri, Antonio. 2019. The Appropriation of Fixed Capital: A Metaphor? In Digital Objects, Digital Subjects: Interdisciplinary Perspectives on Capitalism, Labour and Politics in the Age of Big Data, edited by David Chandler and Christian Fuchs, 205-214. London: University of Westminster Press. DOI: https://doi.org/10.16997/book29.r. License: CC-BY-NC-ND 4.0. The original article was published in Italian in the journal EuroNomade and translated into English with permission: https://www.euronomade.info/appropriazione-di-capitale-fisso-una-metafora/

Economic determinants of the Brazilian social protection system

The increasing theoretical concern with possible complementarities between the social protection and the capitalist production systems is addressed in this paper. The theoretical background is based on the Welfare (RB) and Varieties of Capitalism (VoC) approaches. The integrating these two approaches is due to the assumption that Brazil shelters a variety of combinations of these systems and cannot be typified as a homogeneous type. The territorial scale adopted for the research was the Federative Units. The main aim of this study was to characterize the welfare regimes and the varieties of capitalism in the Brazilian States and test the determination between them. To achieve this aim, unlike previous studies, an ethnic dimension was included in the composition of the State types found, a theme which seems to be neglected in the specialized literature. The use of factorial, cluster and panel data analyses led to the conclusion that the social protection regimes in the Brazilian federative units are determined by the different economic production regimes.

Controlling Reproduction and Disrupting Family Formation: California Women’s Prisons and the Violent Legacy of Eugenics

Prisons in the United States serve as a site and embodiment of gendered and racialized state violence. The US incarcerates more people than any other nation in both numbers and per capita rates. Individuals incarcerated in women’s prisons are 10% of the total prison population, yet women’s prisons remain understudied, and the violence that occurs in women’s facilities is rampant, widespread, and operates in particular racialized and gendered ways. This paper centers the forced sterilizations that occurred in California state prisons over the last two decades. We consider how reproduction and the nuclear family have served as a primary site of racial capitalism and eugenic ideology. While eugenic policies were popularized and promoted across the US and globally in the 20th century, the violent ideas underlying eugenic ideology have been a constant presence throughout US history. The height of the eugenics era is marked by the forcible sterilization of institutionalized ‘deviant’ bodies. While discussions of eugenics often center these programs, the reach of eugenic policies extends far beyond surgical interventions. We utilize a reproductive justice lens to argue that the hierarchical, racialized social stratification necessary for the existence of prisons constructs and sustains the ‘deviant’ bodies and families that predicate eugenic logic, policies, and practices. In this conceptual paper, we draw from ongoing research to argue that prisons, as institutions and as a product of racial capitalism, perpetuate the ongoing violent legacy of eugenics and name abolition as a central component of the fight to end reproductive oppression.

Analyzing the Impact of Public Capital on Private Capital Productivity in a Panel of African Nations

Analyzing the Impact of Public Capital on Private Capital Productivity in a Panel of African Nations

Historical development, impact mechanism and future trends of nitrogen footprint in Wuxi City, China

Human activities have changed the biogeochemical cycle of nitrogen, leading to a large amount of reactive nitrogen (Nr) into the environment, aggravating a series of environmental problems, affecting human and ecosystem health. Cities are the core areas driving nitrogen cycling in terrestrial ecosystems, however, there are numerous influencing factors and their contributions are unclear. The nitrogen footprint is an important index to understand the impact of human activities on the environment, however, the calculation of urban nitrogen footprint needs a simplified and accurate system method. Here we use a nitrogen footprint calculation model at the urban system level based on system nitrogen balance, and a multi-factor extended STIRPAT (stochastic impact by regression on population, affluence, and technology) model suitable for analyzing the impact mechanism of nitrogen footprint to estimate nitrogen footprint of Wuxi City during 1990–2050. We find that: (1) from 1990 to 2020, the total nitrogen footprint of Wuxi City was in an increasing trend, but the per capita nitrogen footprint was in a decreasing trend. The per capita nitrogen footprint of 22.36 kg capita−1 in 2020 was at a lower level globally. (2) Nr discharge from fossil fuel combustion and Haber-Bosch nitrogen fixation accounted for the main proportion of nitrogen footprint. (3) Dietary choice (Ad), GDP per capita (Ag), urbanization rate (Au), population (P), and fossil energy productivity (Te) were the key factors contributing to the increase of the nitrogen footprint, which resulted in an annual increase of 1.39 %. While nitrogen footprint productivity (Tn), nitrogen use efficiency in crop farming (Tc), and nitrogen use efficiency in animal breeding (Ta) were the key inhibit factors that inhibit the increase of nitrogen footprint, and these factors slow down the annual growth rate of nitrogen footprint by 0.39 %. (4) The continuous growth of nitrogen footprint in the baseline and population growth scenarios will bring more environmental problems and greater environmental governance pressure to Wuxi City, while the sustainable scenario that includes comprehensive means such as economic adaptation and technological improvement is more in line with the requirements of high-quality development in China. Several mitigation measures are then proposed by considering Wuxi's realities from both key impact factors and potential for nitrogen footprint reduction in different scenarios, which can provide valuable policy insights to other cities, especially lakeside cities to mitigate nitrogen footprint.

Studi Pengetahuan Pengeolaan Keuangan Pada Pengusaha Depot Air Isi Ulang di Desa Nggele Kecamatan Taliabu Barat Laut

This study aims to find out how knowledge of financial management which includes planning, recording, reporting and control is applied by the refill water depot business in Nggele Village, Northwest Taliabu District. The qualitative descriptive research method with data collection techniques carried out in this study was by conducting interviews with three informants regarding financial management which included: budget use, recording, reporting and control which were applied to three depot business owners in Nggele village. The results of this study indicate that: (1) financial planning, the three business depots in Nggele village have fully implemented financial management of financial planning for their businesses. The planned planning is planning the initial capital budget, production budget, sales budget, profit budget and cash reserves. (2) the recording of the three depot businesses has not fully recorded their business. Three of the informants kept records very simply, two other informants did not make any records in their business (3) reporting to the three depot businesses did not make financial reports in their business because the owners did not understand how to prepare financial reports; and (4) the control carried out by the three depot businesses had not been fully carried out in relation to the evaluation of their business, the informants exercised control in managing their finances with the understanding and knowledge of the owner.

The Impact of Changes in Rural Family Structure on Agricultural Productivity and Efficiency: Evidence from Rice Farmers in China

Over the past three decades, China has shifted from a relatively immobile society to one where rural migrant workers are dispersed throughout urban areas, resulting in significant changes in rural family structure. Previous studies have tended to approach migrant workers as homogeneous groups within families. In contrast, our attention turns to the diversity among individuals and the complex interactions within families. Based on a survey of rice farmers in five provinces of China, this study aims to explore the heterogeneous impact of changes in rural family structure on the single-factor (i.e., land, labor, and capital) productivity and technical efficiency (TE) of rice production. Methodologically, we calculated the productivity indicator through the Cobb–Douglas production function. Following this, a one-step stochastic frontier approach (SFA) was employed to assess the production frontier and estimate inefficiency. To address self-selection bias in family migration behavior, we applied the propensity score matching method (PSM). The results reveal that significant outcomes are observed only with certain types of changes in rural family structure. The production decisions of rural families are influenced by the migration regions of their family members. Compared to non-migrating families (NM), families with couples’ joint migration outside the province show higher single-factor productivity and TE. We used multiple approaches to examine the results and came to similar conclusions. Therefore, enhancing social security measures and employment opportunities for migrant workers, with specific attention to supporting migrant couples, can have a positive impact on sustainable urban and rural development, as well as food security.

Energy-efficient growth for sustainability: an empirical analysis of its determinants in industries

Purpose In the process of industrial growth, when existing industries go for technology upgradation and new modernised industries emerge, both capital intensity and energy demand of overall industry tend to rise steadily. This poses a serious challenge for sustainable development objectives. Towards this end, enhancing energy efficiency of individual industries is the only remedy. Against this backdrop, the study aims to probe the trends in capital intensities and energy efficiencies of individual industries in India. Design/methodology/approach This study uses panel data regression analysis on data of two-digit industries from 1980/1981–2016/2017. The statistical analysis includes relevant macroeconomic variables derived from the literature to ascertain the drivers of energy efficiency in industries. Findings The results brought out that capital deepening due to technology upgradation and modernisation and capital productivity growth are the decisive determinants of energy efficiency growth. Furthermore, the ever-increasing fuel price motivated industries to conserve energy on a steady basis, supplemented by energy conservation-specific policy interventions. Research limitations/implications This study recommends policy initiatives to ascertain and address technology gaps industry-wise, so that its subsequent efficient capital utilisation, and energy conservation measures of industries would result in energy efficiency growth in industry. The policy must focus on energy-efficient capital intensification in fabricated metals, leather, textile and wood industries that are found less-energy-efficient despite being less-capital-intensive. Originality/value This study empirically explores the capital efficiency of industries by investigating the interaction between capital intensity and energy efficiency at a two-digit industry level. It explores the determinants of energy efficiency and proposes industry-specific policies for energy-efficiency-enhancement of the overall industry.

The complex regional effects of macro-institutional change: evidence from EU enlargement over three decades

AbstractThe EU enlargement process has thrust EU internal border regions into the spotlight of the European single market. This study explores how this specific macro-institutional change has impacted their socio-economic development. Tracking outcomes across four EU enlargement waves from 1986 to 2007, we identify integration effects across EU NUTS3 regions. Pooled over all waves and border regions, positive integration effects emerge for per capita GDP, labor productivity, patents per capita, and night light emissions in border regions compared to non-border areas. These effects diminish with increasing spatial distance from the enlargement border. At a detailed level, structural heterogeneities become evident across enlargement waves and region types. Internal border regions in established EU member countries benefit relatively in terms of GDP per capita and labor productivity but experience relative declines in employment rates and population. In contrast, border regions in new member countries, particularly during the 2004 and 2007 eastern enlargements, gain from deepening economic integration in terms of population and employment growth. Sector-specific estimations indicate post-enlargement specialization of economic activities in border regions in line with standard trade theories.

Rightless rurality: the illegalization of Myanmar migrant laborers in Thailand’s agro-industry

ABSTRACT This paper explores relations of production in contemporary agrarian capitalism through the case of rural-rural migration from Myanmar to Thailand. It focuses on the often-overlooked rural proletariat, in this case, illegalized migrant laborers. It shows how migrants live and work in precarity, and argues that their social position is a result of practices of illegalization deployed by state authorities, local police, and farmers, which control and immobilize migrants socio-economically, spatially and politically. The paper adds to debates on the agrarian question of labor, stressing capital and (il)licit law enforcement as co-constitutive in shaping exploitation in the agro-industry.

A New Explanation for Changes in China's Labor Income Share: Capital Heterogeneity

In this paper, a two-sector general equilibrium model with Putty-Clay technology is constructed, and the characteristics of capital heterogeneity are depicted in the model in the form of capital goods productivity variance. Through the capital selection mechanism, the impact of capital heterogeneity on labor income share is explored. It is found that the inverted U-trend of relative capital heterogeneity in capital-intensive industries is the cause. Second, the mechanism of capital heterogeneity affecting labor income share lies in the capital goods selection mechanism. With the increase of capital heterogeneity, the investment uncertainty faced by enterprises is strengthened. When choosing capital goods, enterprises will diversify investment and reduce capital intensity. After capital goods are put into production, firms will use high-productivity capital goods and shut down low-productivity capital goods, leading to a decline in capital utilization, the increase in total factor productivity, and the increase in output. Third, in the capital-intensive sector, the increase of capital heterogeneity will reduce, while in the labor-intensive sector, the opposite effect is presented. The new characteristics of Chinese capital and the change of labor income share, and has important policy reference significance for promoting.

Credit risk contagion in complex companies network–Empirical research based on listed agricultural companies

This study investigates credit risk contagion among listed agricultural companies using data from China's A-share market from 2002 to 2021, examining credit risk contagion mechanisms in the supply chain, investment, and information networks. Furthermore, we examine the moderating effect of network structure on credit risk contagion within networks. The results show that credit risk in the supply chain network has the greatest contagion effect, followed by investment and information networks. Credit risk is mainly transmitted through the capital path, product path, and information path. The network structure plays a crucial role in facilitating the contagion process. State-owned companies and companies with high customer concentration have higher risk resistance capacity. Research also shows a one-year time effect, indicating that the impact of credit risk contagion decreases over time. Finally, this study proposes suggestions for financial institutions, companies, and governments to enhance the risk-resisting abilities of the agricultural industry.

Enhancing sustainable ethanol fuel production from cassava in Vietnam

This study focused on developing a comprehensive model to perform techno-economic analysis and calculate greenhouse gas emissions and net energy balance of cassava-based ethanol production in Vietnam. Four steps were involved in this study: (1) collecting data on the cassava-based ethanol conversion pathway, (2) modeling an ethanol production plant, (3) calculating greenhouse gas emissions and net energy balance, and (4) evaluating economic feasibility. The total capital investment and production cost per liter of ethanol are 0.6 $/l/yr and 0.4 $/l, respectively. The fossil energy consumption and net energy ratio during cultivation, transportation, production, and use of ethanol are 12.4 MJ/l and 1.70, respectively. The total greenhouse gas emissions of cassava-based ethanol production are 1252 gCO2eq/l or 59.1 gCO2eq/MJ, which equals 63 % of greenhouse gas emissions from gasoline. This finding confirms that cassava-based ethanol can be an alternative fuel based on economic feasibility and environmental benefit by reducing greenhouse gas emissions in Vietnam.