Productivity Research Articles

Economics of Water Scarcity and Efficiency

Over the coming decades, global freshwater withdrawals are expected to grow, especially in low- and middle-income countries. Unless there are significant improvements in the efficiency of water use by economies, freshwater stress, crises, and scarcity will worsen. This paper explores further the economic relationship between water use efficiency and scarcity. Because growing scarcity of freshwater in many regions and countries is not adequately reflected in markets, there are often insufficient incentives for investment and innovation to improve the efficiency of water use. To explore further changes in water use efficiency across countries, we conduct a panel analysis of water productivity changes for 130 countries from 1995 to 2020. Countries with lower initial levels of water use efficiency tended to have higher water productivity growth, whereas more agriculturally dependent economies displayed lower improvements in water use efficiency. Better institutional quality and capacity for innovation may also increase water use efficiency. We discuss the implications of these results for improving water use productivity in economies, and in particular, the opportunities and challenges for improving water markets and trades to alleviate water scarcity. We conclude by identifying further areas of research.

The Elasticity of Aggregate Output with Respect to Capital and Labor

It is often assumed that the elasticity of GDP with respect to capital is one-third, but this assumes zero markups and an aggregate production function. I estimate the elasticity allowing markups to vary by industry and with a rich input-output structure. Assumptions about capital costs provide bounds on elasticity. In the United States from 1948–1995, the capital elasticity ranged from 0.19–0.32 and shifted to 0. 24–0.37 by 1996–2018. Excluding housing or decapitalizing intellectual property lowers bounds to as low as 0. 11–0.26. Based on these elasticities, common estimates of total factor productivity growth represent a lower bound. (JEL E13, E22, E23, E25, N12)

Impact of Job Satisfaction on the Labour Productivity of Healthcare Personnel

Introduction. The healthcare sector, a cornerstone of society and the economy, brings together specialists from various fields and departments. As healthcare organisations grapple with similar human resource management and policy development challenges as other types of organisations, research on increasing job satisfaction, a key indicator of effective management and employee attitudes, becomes increasingly relevant. Aim and tasks. This study aims to determine the level of satisfaction among those employed in the healthcare sector, particularly in Georgia, and to underscore its profound impact on performance. Results. Findings revealed that various factors affect job satisfaction and, consequently, the quality of service provided. Using the F test, it was found that there is a significant statistical relationship between education (0.01 level (p < 0.001, F = 9.992)), work experience (0.01 level (p < 0.001, F = 9.299)), age (0.01 level (P<0.001, F= 9.164)) and job satisfaction and quality of service. Also, the research results showed that 70% of the respondents believe job satisfaction enhances their performance. Specialized expertise, knowledge, and an appropriate strategy are required to manage these professionals. It is highly significant and essential for employees to have constant development opportunities, access to professional training, and work in a high-satisfaction environment. Conclusions. That is critically important for improving performance in healthcare and any organization. However, it is worth mentioning this sector faces stress, high mental load, and burnout. In order to address these issues, organizations should have their own clear policy, properly distribute roles and resources, involve employees in processes from the start, and provide relevant information. Hinged on the previously conducted research, opportunities for personnel development and training are limited in Georgia, which in turn is leading to a shortage of qualified personnel and high staff turnover. The presented recommendations will help managers of organizations analyse the importance of job satisfaction in the growth of productivity and success of the organization and its constituent indicators and develop an appropriate strategy for their improvement in the future.

Utilizing Investment in Fixed Assets and R&D as a Catalyst for Boosting Productivity to Stimulate Economic Growth

Investments form the basis for high-quality economic growth by ensuring renewal of production capacities and improvement of technologies and processes, thereby increasing labor productivity. Investment research is key to understanding its impact on the country’s economic advancement and more effective government policymaking to stimulate investment activity. The purpose of this paper is to study the relationship between fixed capital and R&D investments and labor productivity growth, as well as to determine the optimal level of these investments in determining the greatest effect on labor productivity growth. We use a regression model and the least squares method to empirically analyze data for seven countries for the period between 1997 and 2022. We calculate estimated values using SPSS and Python. The results show a certain impact of fixed assets and R&D investments on labor productivity growth. However, the payoff varies across the countries under study. Furthermore, despite its relatively small volumes, investment in R&D brings a greater effect on productivity growth than investment in fixed capital. With other factors remaining constant, the calculated optimums for investments in fixed assets and R&D show maximum points of growth in labor productivity.

Integrative approaches to improve litchi (Litchi chinensis Sonn.) plant health using bio-transformations and entomopathogenic fungi

Bio-transformations refer to the chemical modifications made by an organism on a chemical compound that often involves the interaction of plants with microbes to alter the chemical composition of soil or plant. Integrating bio-transformations and entomopathogenic fungi into litchi cultivation can enhance symbiotic relationships, microbial enzymatic activity in rhizosphere, disease suppression and promote overall plant health. The integration of biological formulations and entomopathogenic fungi can significantly influence growth, nutrient dynamics, physiology, and rhizosphere microbiome of air-layered litchi (Litchi chinensis Sonn.) saplings. Biological modifications included, K-mobilizers, AM fungi, Pseudomonas florescence and Azotobacter chroococcum along with Metarhizium, entomopathogenic fungi have been used. The treatments included, T1-Litchi orchard soil + sand (1:1); T2-Sand + AM fungi + Azotobacter chroococcum (1:2:1); T3-Sand + Pseudomonas florecence + K-mobilizer (1:1:1); T4- AM fungi + K-mobilizers (1:1); T5, P. Florecence + A. chroococcum + K-mobilizer (1:1:1); T6-Sand + P. florecence (1:2) and T7-Uninoculated control for field performance. Treatments T4-T6 were further uniformly amended with drenching of Metarrhizium in rhizosphere. T2 application significantly increased resident microbe survival, total chlorophyll content and root soil ratio in seedlings. A. chroococcum, Pseudomonas, K-mobilizers and AM fungi increased in microbial biomass of 2.59, 3.39, 2.42 and 2.77 times, respectively. Acidic phosphatases, dehydrogenases and alkaline phosphatases were increased in rhizosphere. Leaf nutrients reflected through DOP were considerably altered by T2 treatment. Based on Eigen value, PCA-induced changes at biological modifications showed maximum total variance. The study inferred that the bio-transformations through microbial inoculants and entomopathogenic fungi could be an encouraging strategy to enhance the growth of plants, health and productivity. Such practices align well with the goals of sustainable agriculture through biological means by reducing dependency on chemical inputs. By delving into these aspects, the research gaps including microbial processes, competitive and symbiotic relationships, resistance in microbes and how complex interactions among bio-transformations, entomopathogenic fungi and microbes can significantly impact the health and productivity of litchi. Understanding and harnessing these interactions can lead to more effective and sustainable farming practices.

Food consumption in East Kazakhstan region - focus on stability of indicators

Consumption of food products by the population is an important indicator of food security, as this concept includes not only food independence, but also the availability of food products. The aim is to assess the relationship between economic indicators and sustainable development of agro-industrial complex in East Kazakhstan for 2012-2023, with emphasis on the impact of the existing conditions and factors on food consumption patterns. Methods include econometric modeling, statistical estimation, data synthesis and regression analysis to study the obtained data, identify patterns and summarize suggestions and recommendations. Innovative econometric techniques supported by Eviews 12.0 software allow the interaction between different variables to be quantified with precision. Results show that growth in gross regional product per capita is correlated with improvements in dietary diversity and nutritional quality, increasing food security. The authors note that fluctuations in agricultural production significantly affect food availability and prices. An analysis of the level of food utilization is presented, which makes it possible to determine the state and prospects for the development of key branches of the agricultural sector of the region and the achievement of import substitution policy. The negative point is the problem of economic availability of food products in the region in the necessary volumes and assortment for residents with low incomes, which is caused by the growth of inflation and the decline in real money. It is shown that economic parameters explain about 95% of the variability in food consumption. The subsistence minimum plays an important role in food consumption. Its growth leads to an increase in food expenditures, which in turn affects the overall level of food consumption. Regular adjustments to social standards are needed. Conclusions - the possibilities of food stability in the country depend on the demand trends in the food market. There is a direct correlation between the productivity of agricultural production and the structure of consumer demand for food products. The state policy in the sphere of food consumption and provision of the population with food should include mechanisms to reduce income differences, stabilize prices, focus on balanced nutrition, and a comprehensive approach to forecasting consumer preferences.

RELATIONSHIP BETWEEN LOGISTICS SECTOR AND ECONOMIC GROWTH IN ASEAN COUNTRIES

In the modern economics, any manufacturing companies have increasingly relied on professional logistics firms, leading to rapid growth in the logistics sector as a service industry and its significant contribution to economic development. With increasing globalization and competition, countries have focused on enhancing their logistics systems to ensure stable economic growth and strengthen global trade competitiveness. In the ASEAN region, logistics plays a critical role, facilitating cross-border trade and regional connectivity. This study aims to investigate the relationship between the logistics sector, specifically air freight transportation, and economic growth in ASEAN countries, given the sector's central role in supporting supply chain management and trade activities. The primary objective of this study is to determine whether there is a causal relationship between air freight transportation (AFT), a key logistics activity, and gross domestic product (GDP) growth in six ASEAN countries. The study seeks to provide insights into how investment in logistics infrastructure, particularly in air freight, may influence economic growth in the region. The study uses panel data for six ASEAN countries from 1996 to 2021. Data on GDP growth and air freight transportation were sourced from the World Bank’s World Development Indicators database. A series of statistical tests, including the Cross-Sectional Augmented Dickey Fuller (CADF) test, Pesaran’s slope homogeneity test, and the Bootstrap Granger causality test, were performed to examine cross-sectional dependence and the causal relationship between GDP growth and air freight transportation. Descriptive statistics revealed significant disparities in air freight transportation capacity among the countries studied, with Indonesia and Thailand showing substantial air freight volumes compared to the Philippines. However, the results of the panel causality tests, including the Dumitrescu and Hurlin panel causality test, indicate that no causal relationship exists between air freight transportation and GDP growth in the six ASEAN countries.

Empowering a Knowledge-Based Economy: An Assessment of the Influence on Economic Development

Scientific research is one of the most important variables affecting the economic growth and development of a country, being the engine of innovation. In this regard, the relevance of various assessments of scientific interaction with economic development is determined by modern requirements. The study aims to investigate the impact of scientific research on economic development in Albania. The assessment was based on the analysis of secondary data from organisations such as Eurostat and INSTAT, which were further considered within the framework of an econometric model in EViews. The study highlighted the role of stimulating economic development in Albania in various sectors. The study demonstrated that scientific research is highly significant for the economic growth of a country. Based on the statistical data during the period from 1996 to 2022, a regression model was employed to simulate the relationship between independent variables (scientific labour force, public research and development (R&D) expenditures, and patents) and the dependent variable (gross domestic product (GDP) growth). The study shows that these factors have a positive impact on the gross domestic product per capita in Albania. The empirical research results revealed that the scientific labour force, public R&D expenditures and patents have a positive and significant impact on GDP growth in Albania. Based on the information received, recommendations were made to improve the quality of scientific research in the country. The result of this study could provide valuable information to policymakers and serve as scientific evidence for future studies.

Pengaruh Nilai Tukar, Inflasi, Produk Domestik Bruto terhadap Ekspor Karet Indonesia Periode 2015 sampai dengan 2022

This study aims to analyze the influence of exchange rate, inflation rate, and Gross Domestic Product (GDP) growth on Indonesian rubber exports during the period of 2015-2022. The objective of this research is to understand the dynamics of economic factors affecting Indonesian rubber exports and their potential contribution to the national economy. A quantitative research method was employed, utilizing regression analysis to test hypotheses regarding the relationship between the aforementioned variables. Data were obtained from official sources such as Bank Indonesia and the Indonesian Central Statistics Agency (BPS), encompassing exchange rates, inflation rates, GDP, and rubber export data. The analysis indicates that the exchange rate does not significantly influence Indonesian rubber exports. However, the inflation rate exhibits a significant positive impact on rubber export volume, while GDP growth shows a positive but insignificant influence. Simultaneously, exchange rates, inflation rates, and GDP collectively demonstrate a significant impact on rubber exports. This study underscores the importance of considering the economic factors examined in designing policies and strategies to enhance rubber exports in Indonesia. With a deeper understanding of these factors, it is hoped that better guidance can be provided for economic development in the rubber sector and, consequently, for the national economy.

Energy price reforms, exchange rate devaluation and macroeconomic instability: Evidence from Bayesian VAR identified with sign‐and‐zero restrictions

AbstractThis study sets out to examine the effects of the interaction of subsidy removal on premium motor spirit (PMS) and exchange rate devaluation on macroeconomic instability in Nigeria. In this regard, this study adopted the Bayesian vector autoregressive model (BVAR) identified with sign‐and‐zero restrictions for annual data between 1985 and 2022. The empirical results reveal that both the removal of subsidies on PMS and the devaluation of the naira exchange rate significantly undermine real gross domestic product (GDP) growth and raise inflationary pressures in Nigeria. One important implication of this finding is that the ongoing subsidy reforms in the energy sector and associated devaluation of the naira exchange rate raise the risk of stagflation in Nigeria. Secondly, the simulation shows that simultaneous subsidy removal on PMS and exchange rate devaluation can trigger macroeconomic instability. This finding implies that stabilising PMS price and the exchange rate is key to achieving macroeconomic stability in Nigeria. Thus, this study recommends that Nigeria should be cautious and act quickly to cushion the price of PMS from the vagaries of foreign exchange market fluctuations to improve macroeconomic stability in the country.

정기선 해운 연결성이 경제성장에 미치는 영향에 관한 연구: 서아프리카 개발도상국을 중심으로

Purpose: This paper investigates the impact on economic growth of liner shipping connectivity. Establishing an efficient logistics infrastructure plays a pivotal role in developing a national economy. Among various sub-sectors in the logistics system, a great deal of empirical evidence indicates the importance of a maritime transport infrastructure. Research design, data, and methodology: In this regard, this study examines the impact of liner shipping connectivity on gross domestic product (GDP) growth in 14 West African countries. To this end, a dataset for the period from 2006 to 2022 is analyzed in panel data regression models. Results: L iner s hipping c onnectivity i s a ssociated p ositively w ith GDP g rowth i n A frican countries. However, further analysis reveals that the positive impact of liner shipping connectivity is significant for parity in the GDP purchasing power of small-sized economies. Conclusions: The findings in this paper provide valuable implications for policy-making in the establishment of a maritime transport infrastructure and network.

A methodology to assess the maturity level of the digital ecosystem and its testing on the IT parks case

Subject. The article addresses a technopark as a form of a digital ecosystem that has a certain structure and is characterized by the features of structural components and their interrelationships. Objectives. The study aims to develop a methodology for assessing the maturity level of digital ecosystem, which enables to determine the stage of ecosystem's life cycle and the level of its development. Methods. The assessment rests on the developed multifactorial methodology. It includes three interrelated complex parameters (resource and infrastructure security, the level of development of central relational mechanisms, and ecosystem productivity). The methodology is based on methods of scoring and identifying correlation between indicators characterizing the maturity level of each component of the ecosystem. Results. From a theoretical perspective, we developed an assessment methodology. It is unique in its multifactorial and structural approach to assessing the maturity of ecosystems. From a practical point of view, we built ratings of IT parks, which clearly reflect the stage of ecosystem development, factors ensuring the growth of productivity, and socio-economic effect from ecosystem mechanisms of the IT park. The study identifies the best ecosystems of IT parks and ecosystems that need to be developed and supported financially and institutionally. Conclusions. The assessment methodology is applicable for monitoring and evaluating the stage of development of IT parks as digital regional ecosystems.

Теория эндогенного роста: исследование исторических предпосылок и ретроспективных особенностей эволюции в рамках отдельных макроэкономических парадигм и моделей экономического роста

To date, the main research on macroeconomic theory identifies five main factors of economic growth that will be decisive in the coming decades: population and human capital; capital and capital markets; globalization and trade; technology and innovation, as well as new frontiers for productivity growth. It remains an undeniable fact that innovations stimulate modern economic growth. At the same time, in the process of its evolution, any macroeconomic paradigm faces certain limitations associated with changes in the socio-economic system of society, and as a result, there is a need to rethink what are the historical prerequisites and retrospective features of the evolution of the endogenous macroeconomic theory of economic growth. The purpose of the article is to study the nature of similarities and contradictions, and the nature of the mutual influence of various macroeconomic paradigms within the framework of the evolution of the endogenous macroeconomic theory of economic growth; the roles of generalizing and separating factors that cause the emergence and development of individual elements of this macroeconomic paradigm. The scientific novelty of the article is presented by the author’s new critical view of the study of historical prerequisites and retrospective features of the evolution of individual macroeconomic theories and models of economic growth, especially the endogenous growth model, in order to show that the nature of innovation itself has an ambiguous assessment from the side of macroeconomic science.

Productivity growth and regional reindustrialisation: UK evidence

ABSTRACT The re-emergence of industry – a process known as ‘reindustrialisation’ – has been widely acknowledged, especially in the United States and Europe. However, there are unanswered questions about the extent of any recent industrial revival in the UK. We present new evidence on reindustrialisation within and across UK regions. Our measures of reindustrialisation reveal that most regions outside London have reindustrialised to some extent. Furthermore, we explore regional reindustrialisation-growth patterns within the context of the UK’s longstanding spatial divide in productivity. Our results highlight that manufacturing can still be a dynamic force in the UK economy when supported by appropriate regional policies.

Labor share decline across US manufacturing sectors: 1979–2019

ABSTRACT This paper studies the sectoral contributions to aggregate manufacturing labour share decline in the US between 1979 and 2019. Using the Log Mean Divisia index (LMDI) decomposition, the decline in the manufacturing sector’s labour share is decomposed into contributions from real wage growth, labour productivity growth, changes in employment shares, and relative prices arising from the constituent sectors across three business cycles. The primary findings of the paper suggest that the downward decoupling of real wages from labour productivity is the primary contributor to the labour share decline in manufacturing. Moreover, low labour share sectors (especially chemical products, food and beverage and tobacco products, and petroleum and coal products) have experienced an increase in their employment shares, contributing negatively to aggregate manufacturing labour share. This paper advances insights related to sectoral heterogeneity and possible mechanisms behind the decline in aggregate manufacturing labour share.

Inclusive education and labour productivity: The case of Sub‐Saharan African countries

AbstractEducation is instrumental in developing skills that determine the level of labour productivity in an economy. This study cross‐examines the effect of inclusive education on labour productivity growth in Sub‐Saharan Africa (SSA). The methodology involves the instrumental variable two‐stage least square (IV‐2SLS) with data collected for 48 SSA countries spanning between the years 2000–2021. The following results are arrived at: (i) Inclusive education significantly boosts labour productivity across all income groups. (ii) Pre‐primary, secondary and tertiary education significantly affect labour productivity more than primary education with the impact less evident in middle‐income countries. (iii) The impact of secondary and primary educational enrolments on labour productivity is greater in African countries that follow the French civil system compared to those under British common‐law jurisdiction. Based on the study findings, the following policy recommendations can be forwarded: SSA countries should design policies that improve the productive capacity of their workforce through the enhancement of inclusive education. In addition, more investments should be made in the educational sector to increase access to education and equitable opportunities for schooling for all, especially in Africa where the attainment rate has been relatively low.

Приоритетный рост заработной платы как фактор повышения производительности труда

Based on Rosstat data, the trends and factors determining labor productivity in modern Russia are assessed. It is shown that the main trend in the development of the Russian economy is a decrease in the growth rate of labor productivity. It is shown that the influence of wages and accumulated fixed capital on labor productivity is equivalent. At the same time, with a high level of confidence, labor productivity is determined by the amount of wages, and the advance of wage growth in relation to productivity growth largely determines the growth of labor productivity.

Рост заработной платы как фактор повышения эффективности производства в современной России

The work assesses trends in the efficiency of the economy of modern Russia and assesses the impact of wages and accumulated fixed capital on production efficiency. Production efficiency was assessed by return on assets. Factors of production were assessed by the growth rate of wages, their excess over the growth rate of labor productivity, and the growth rate of accumulated fixed capital. Econometric methods were used. It is shown that the main trend in the development of the Russian economy is a decrease in the profitability of assets and, accordingly, production efficiency. An increase in production efficiency by 40% can be achieved through an increase in wages and by 50% through an increase in accumulated fixed capital. Additionally, increased efficiency can be ensured by the rate of growth in wages exceeding the rate of growth in labor productivity.

Moderating Effect of Coaching Between Leadership, Culture and Work-Life Balance with Job Satisfaction in Malaysia

Objective: The purpose of the research is to examine the moderating role of coaching on employee job satisfaction within the Malaysian manufacturing sector. The independent variables are transformational leadership, organizational culture and work-life balance. Thus, research investigates the connections between the independent variables and employee job satisfaction as the dependent variable, with a specific focus on the moderating impact of coaching. Theoretical Framework: The underpinning study uses Theory X and Theory Y where empowering managers foster positive relationships with their employees and improved productivity. Method: Through a quantitative analysis and the 400 questionnaires was successfully collected using snowball sampling. The data is being analysed using SPSS software to perform Pearson correlations and regression. Results and Discussion: The findings reveal positive correlations between variables and job satisfaction. Coaching also significantly mediates the job satisfaction. The implications extend beyond the manufacturing sector, providing valuable insights for organizations seeking to cultivate positive work environments and achieve overall organizational success. Research Implications: The study advances scholarly knowledge by closing a gap in the literature on job satisfaction of Malaysian manufacturing workers. Prior to this study, no empirical investigation on the function of coaching as a moderator in the relationship between particular traits and employee work satisfaction in Malaysian manufacturing could be found. In essence, by including coaching into these areas, Malaysian manufacturing companies can raise employee job satisfaction. By means of coaching strategies, leaders enable employees to guide and support them, offer timely feedback, and promote personal development, so enhancing employee performance, job satisfaction, and Malaysian manufacturing companies. Originality/Value: The concept of the study examined the understanding for what coaching can moderate the relationship between leadership, organizational culture, and work-life balance with job satisfaction in Malaysia. This topic is particularly relevant to SDG 8: Decent Work and Economic Growth: Enhancing job satisfaction can lead to higher productivity and economic growth.

Impact of Tax-based Revenue on Economic Development in Nigeria, 1999 to 2023

This research measures the contributory impact of Tax-based revenue on economic development in Nigeria, 1999 to 2023, with a specific focus on the nuanced dynamics of oil-based tax (OBT), non-oil-based tax (NOBT), and aggregate tax revenue (ATR). Leveraging comprehensive data extracted from the Central Bank of Nigeria's Statistical Bulletin and Federal Inland Revenue Service (FIRS) database, the study employs the Autoregressive Distributed Lag Model (ARDL) with Gross Domestic Product Growth Per Capital (GDPPC) as the outcome variable. The empirical analysis supports a significant and positive impact of non-oil-based tax revenue on GDPG while the oil-based tax shares no significant impact on economic development. Also, aggregate tax revenue (ATR) was found to negatively but significantly impact on economic development. The study recommends the adjustment of the tax system to address the developmental constraint on investment and consumption posed by taxation while optimizing the benefits that accrue from an efficient and good tax system.