Growth Rate Of Labor Productivity Research Articles

Методический подход к достижению баланса интересов сельскохозяйственных организаций, их работников и государства

The state is interested in increasing the volume of agricultural production, but state support for agricultural production is limited. The activity of agricultural organizations is profitable, but the achieved level of profitability is still insufficient for a significant expansion of production. The low level of remuneration of agricultural workers does not create sufficient incentives for labor productivity growth. The use of the profit factor model constructed by the authors makes it possible to create a basis for the formation of vectors of interests of the state, producers and workers in one direction in such a way that state support creates the possibility of additional labor costs. Subject to compliance with the requirement of a faster rate of labor productivity growth, this will contribute to the growth of profits of commercial agricultural organizations received from an ever-increasing volume of production.

The fundamental principle of providing enhanced reproduction in enterprises

It is noted that the article attaches great importance to such principles as the principle of the excess of labor productivity growth over wage growth. Compliance with this principle will allow resolving the contradiction between the economic interests of the employer and employees. The issue of labor productivity should be considered along with wages and living standards. With low wages, one cannot speak of an increase in productivity, just as with low productivity one cannot speak of decent wages and their growth. The purpose of the study is to offer some methodological features of the calculations for comparing the growth rates of labor productivity and staff wages, to show their simplicity and accessibility. The article used economic-mathematical and graphic methods of research. On the example of the agricultural enterprise SRL "Agrosolidax" of the Ceadir-Lungsky district for 2016-2021, compliance with the basic principle of exceeding the growth of labor productivity compared to the growth of its payment is shown. The calculation results are shown in the graphs. The fundamental principle of ensuring expanded reproduction in enterprises presented in the article is quite accessible and easy to use. It can be used both for educational purposes and in existing enterprises.

Features of spatial and structural transformations of the economy: European experience and Ukrainian realities

The article focuses on the study of the structural features of the economy of the EU member states and Ukraine. Labor productivity and capital productivity in a sectoral section are analyzed. In particular, changes in the dynamics of labor and capital productivity during 2014-2021 are examined. Based on the results, the sectors that are leaders and can act as determinants of the productive capacity of Ukraine and its regions are identified. The article reveals that the most intensive growth of labor productivity is recorded in such sectors as temporary accommodation and organization of food, as well as information and telecommunications. Capital productivity under the prevailing instability of the dynamics of this indicator is recorded only in construction and in information and telecommunications. The regions of Ukraine are ranked and grouped according to the intensity of labor productivity growth. The comparative analysis of the rates of growth (decline) of capital productivity in the sectors of the economy of Ukraine is carried out. It shows that the growth rate of labor productivity exceeds that of capital productivity. Based on the assessment of the ratio of wage growth rates and labor productivity in the economic sectors, the hypothesis regarding the predominance of labor productivity growth rates over wage growth rates in the majority of the economic sectors is verified. Drivers contributing to the growth of the productive capacity of economic sectors are characterized. The main strategic priorities of the structural transformations of the domestic economy in wartime and post-war recovery are determined, in particular regarding the development of the military-defense complex, which will ensure the long-term political and economic security of Ukraine and the development of industrial and innovative structural elements of the country’s economic system. The article emphasizes the need to create and develop a national innovation platform, which should be a component of the innovation market and the formation of the state system of legal protection of intellectual property, the demands for reform of which were put forward in the process of deepening European integration reforms.

ECONOMIC GROWTH AND TOTAL FACTOR PRODUCTIVITY IN CENTRAL AND EASTERN EUROPEAN COUNTRIES BETWEEN TWO GLOBAL CRISES AND BEYOND

The aim of the article is to assess the factors of economic growth of the CEE countries over the 30-year history, the productivity of capital and human resources, the resilience of these countries to the negative impact of the global financial crisis. Methodology. The Solow growth model was used to estimate the growth rates of capital, labor and total factor productivity (TFP). The impact of macroeconomic indicators on GDP and TFP growth is assessed. The group of Central and Eastern European countries that joined the European Union was chosen for the analysis: Bulgaria, Romania, Poland, Hungary, Czech Republic, Slovakia, Slovenia, Estonia, Lithuania, Latvia, as well as post-Soviet European countries: Ukraine, Belarus, Russia and Moldova and Albania in the period from 1991 to 2019. Results. TFP makes a significant contribution to the economic growth of CEE countries. During the period of market reforms, TFP significantly decreased, and during the boom of 2000-2008 it fully ensured the growth of the CEE economies, after the crisis of 2008, the contribution of TFP decreased by 2 times. In the conditions of recovery, TFP growth is positively influenced by inflation, negative CA balance, and unemployment reduction. In the post-crisis period, a decrease in inflation, a positive CA balance, and an increase in unemployment had a positive impact on TFP growth. During a depression, the influence of capital becomes dominant. Restrictive monetary policy contributes to the efficiency of CEE economies. In the short run, unemployment increases, but in the long run it decreases significantly due to the growth of investment and exports. Practical implications. The analysis makes it possible to identify effective macroeconomic policies to stimulate the productivity of the economies of Central and Eastern Europe during the period of economic recovery and depression. Value/originality. A long-term study of the economic performance of CEE countries using the Solow methodology has revealed the behavior of total factor productivity in different periods of modern economic history and its contribution to economic growth.

DEMOECONOMICS: SUSTAINABLE DEVELOPMENT GOALS AND IMPLEMENTATION OF NATIONAL PROJECTS IN THE RUSSIAN FEDERATION AND THE REPUBLIC OF KAZAKHSTAN

In the process of implementing the Sustainable Development Goals (SDGs), each country uses its own established mechanisms that contribute to the implementation of the Goals at the national level. The article presents an overview of research on the theoretical and practical aspects of sustainable development in the Russian Federation and the Republic of Kazakhstan. Special attention is paid to the SDGs adopted by the United Nations in 2015. The relationship of the SDGs with the National Projects adopted in the Russian Federation and valid until 2024 and the strategic projects of the Republic of Kazakhstan presented in the "Strategy 2030", which were first announced in 1997 in the Presidential address, is shown. It is determined that in the Russian Federation and the Republic of Kazakhstan there is an annual collection and analysis of data in the field of sustainable development according to the methods developed by the United Nations. It is noted that the main reason for the decline in the main indicators of sustainable development in 2020, including the growth rate of labor productivity, is the outbreak of the COVID-2019 pandemic. The interrelation of the Sustainable Development Goals with the introduced indicator "demoeconomics" is shown, which, along with such parameters as "demoethics", "demography" and "democracy", is a criterion for the harmonious socio-economic development of society.

Анализ факторов, влияющих на перспективы повышения производительности труда

The article is devoted to issues concerning the prospects for the formation of a comprehensive system of measures to improve labor productivity. Based on the research of various authors in the course of determining the key factors for increasing labor productivity, it was found that their qualitative and quantitative composition primarily depends on the industry in which the enterprise operates. An analysis was carried out of some statistical indicators characterizing, first of all, directly the growth rates of labor productivity in general, by individual industries and indicators relating to the labor force as a whole, average annual employment and the number of unemployed. The article conducted a study of the influence of external and internal environmental factors on the activities of enterprises dedicated to improving productivity. In the course of the study, it was found that in order to have a steady rate of labor productivity growth, it is necessary to provide assistance from the state that affects not only the internal environment of organizations, but also the external environment. Support measures should be of a comprehensive systemic nature and extend at the first stage to priority industries whose enterprises produce products with guaranteed demand. This will create a complex of enterprises that have the necessary monetary foundation for further independent functioning and development.

РОСТ АГЛОМЕРАЦИЙ И ЭФФЕКТИВНОСТЬ ЭКОНОМИКИ

The article examines the impact of population migration to the capital of the region on the development of the region’s economy as a whole. It is shown that a higher concentration of the population in the capital of the region and the rate of migration of the population to the capital do not lead to an acceleration of economic growth in the region. If more than 40% of the region’s population lives in the capital of the region, then the growth rate of labor productivity in the region is noticeably lower than the average for the Russian Federation. Data analysis shows that labor productivity is growing faster in regions that are losing population, and slower in regions where the population is growing or decreasing slightly. It should be noted that regions with lower labor productivity are losing population faster

Potato growing industry of Belarus: regional peculiarities of cultivation, labor productivity and work efficiency

Potato cultivation in Belarus has long-standing traditions. This crop is grown everywhere by all categories of farms of the republic, among which the highest proportion (over 80 %) is occupied by personal subsidiary farms of the population. Significant regional peculiarities have developed in terms of the gross harvest of tubers. Thus, over a five-year period of time (2016–2020), farms of the Minsk and Brest regions differed, where up to 45 % of all potato tubers were harvested, and in all regions there was a dynamic decrease in gross potato production. For various reasons, the farms of some Belarusian regions, for example, the Gomel region, were characterized by poor crop yields. It is important to pay attention to the fact that during the studied period in potato-growing agricultural organizations in Belarus, the total (commercial) cost of 1 ton of products sold increased significantly (by more than 40 %), and in some years the potatoes sold turned out to be unprofitable. An in-depth study of the main production, economic and financial indicators for potato cultivation was carried out on the example of the experimental base “Natalyevsk” of the Chervensky district for the period 2019–2021, where significant volumes of tubers were produced. According to the reporting data of this farm, calculations of hourly labor productivity in the potato industry were performed using the current and proposed methodology. It was revealed that the average annual growth rate of labor productivity, calculated on the basis of net output, was 5,1 % ahead of the similar growth rate of labor productivity, found on the basis of gross output. The content of the article concludes with reasonable conclusions.

Modern problems of digitalization in energy

The formation of the technological progress of the Russian economy is inextricably linked with the development of the industry. And one of the key industries is energy. It is she who largely determines the socio-economic and industrial development of the country. Without a doubt, with digitization, business becomes more efficient and products become more accessible. At this stage, the digitalization of postal systems in the Russian Federation makes it possible to process more than a billion e-mail messages every day. This leads to an increase in the growth rate of labor productivity and a decrease in costs. Therefore, there is reason to say that the digitalization of the electric power industry will allow not only achieving similar results, but also surpassing them.

Economic growth as a double-edged sword: The pollution-adjusted Kaldor-Verdoorn effect

There is evidence that pollution concentration impacts negatively on labor productivity, which has implications for the well-know Kaldor-Verdoorn law. While the growth rate of labor productivity varies positively with the growth rate of output, the growth rate of pollution concentration also varies positively with the latter. An increase in pollution concentration leading to environmental degradation might thus offset the productivity-enhancing effect of output growth. This paper explores such a double-edged sword feature of output growth in a demand-led macrodynamic framework having pollution concentration as a further influence on the conflict over the functional distribution of income. The stability of the environment-economy system hinges on how output growth varies with the functional distribution of income. When output growth is wage-led, the balanced growth path is unstable. When output growth is profit-led, stability is possible, but the system undergoes fluctuations as it converges to the balanced growth path.

Evolution of the theory and practices of human capital management in the agricultural sector

Human capital is a factor and a result of the agrarian economy development at the same time, which determines peculiarities of its formation and use. Managing the development of human capital in agricultural sector of the economy is a complex problem, requiring development of theoretical, methodological and practical recommendations in order to ensure food security, improve in competitiveness of agricultural products and living standards of the rural population, stimulate innovative activities and innovative development of agro-industrial complex, and ensuring the growth rate of agricultural labor productivity. Social and economic, technical and technological and institutional transformations in the agricultural sector contribute to the emergence of scientific schools, defining theoretical directions and methodological approaches of management. Aggregation of conducted researches and refracting them into the plane of agro-industrial production makes it possible to identify the main stages of transformation of conceptual aspects of human capital management, depending on the stages of social and economic and technical and technological development of the agricultural sector. Study of genesis and evolution of human capital management allows to substantiate a single concept, revealing features of transformation of theoretical and methodological ideas about this process within the framework of scientific paradigm corresponding to a certain historical stage in society development. Considering the previous stages, this makes it possible to develop the concept of the essence, content and structure of human capital, taking into account industry specifications, to determine the features of its management in the agricultural sector.

The impact of employee motivation on organisational performance in the case of NOSA company

The article investigates the features of employee motivation impact on the organisation effectiveness. The purpose of the study is to clarify the theoretical foundations of motivation, improve the methodological approaches and substantiate the practical recommendations concerning the motivational mechanism development, which is one of the most important components in the chain of achieving high performance of modern business entities. Research objectives are to analyse the of employee motivation impact on the effectiveness of the organisation, identify and evaluate the relationship between the impact of the remuneration system on the results of the organisation’s activities, formulate recommendations to firms and their managers on promoting the system of motivation and remuneration of employees, that expands the effectiveness of the organisation.In the article the terminological analysis of the definition of “employee motivation” has been carried out. The relationship between employee motivation and the remuneration system with organisational efficiency has been formalised. The effectiveness of the motivation system and the employee incentive system at Iran software and hardware company (NOSA) has been evaluated using the questionnaire and expert survey method. The relationship between the productivity of the company’s personnel and the level of remuneration has been ascertained using the correlation and regression analysis. The recommendations to improve the efficiency of the labor motivation system at the NOSA enterprise have been formulated based on the obtained data.The results obtained allowed us to conclude that the interaction of motives and incentives is the tool that allows us to meet the needs of the employee in the most appropriate way for him – as a result of the realization of his abilities. Study of the motivation system at the NOSA enterprise indicates that the staff is not satisfied with the material remuneration. The company’s management during developing directions for improving the motivation program should take into account that the growth rate of labor productivity should outstrip the growth rate of its remuneration, otherwise the company’s resources will be spent inefficiently.

СОВЕРШЕНСТВОВАНИЕ СИСТЕМЫ УПРАВЛЕНИЯ АО «ЕВРОХИМ-1 ФУНКЦИОНАЛЬНЫЕ ДОБАВКИ»

The purpose of the article is to propose recommendations for improving the management system of Eurochem-1 Functional Additives joint-stock company. The article used methods: synthesis, system functional analysis, expert and survey. Recommendations were proposed to improve the management system of Eurochem-1 Functional Additives joint-stock company. It was concluded that the performance indicator of the management system is more achieved due to the high value of the balance sheet profit indicator and the volume of commodity products, while the value of the indicator of the ratio of growth rates of labor productivity and wages does not exceed 100%. The need to improve the efficiency of the company is due not only to the desires of customers, but also to external conditions, in particular, at the moment it is a pandemic and a distant economic downturn.

Rethinking the Africa-China Trade: Some Policy Considerations and Implications

As many countries in Sub-Saharan Africa (SSA) struggle against severe food insecurity, unemployment and poverty, their heavy reliance on the export of raw materials as sources of revenue to solve these problems has long been put into question. The trade between China and SSA is characterized by China’s importing mining and extraction from SSA and SSA’s importing manufactured goods from China. We analyse the asymmetric SSA-China trade and focus on how trade policy and productivity shocks will reduce SSA’s dependency on raw material export to China. We perform accounting and simulation exercises using the General Equilibrium GTAP model. The main innovation in our study is the inclusion of estimates of different labor productivity growth rates across regions and across sectors in the model. These labor productivity growth estimates show that the gaps between China and SSA especially in manufacturing are huge; ignoring these gaps would have biased any estimation. The other innovation is the simulation that the imports from China would yield some technology spillover on productivity in SSA. We examine several scenarios that include tariff elimination by China, common external tariff in SSA, and free regional trade in SSA. We find that with its current low labor productivity growth rates especially in manufacturing sectors, SSA continues to lose in the global trade, including in its trade with China. More important, manoeuvring room for trade policies is limited. China tariffs on imports from Africa are already low and bringing these tariffs down to zero will lead only to a modest increases in welfare and employment for SSA without altering SSA’s dependence on raw material export. Raising the tariffs on manufactured goods from China will reduce SSA’s welfare and employment by harming consumers and the agriculture sectors dependent on intermediate goods from China. Increases in labor productivity and technical progress in SSA’s manufacturing sectors are welfare improving, but will not alter the high share of mining and extraction export to China unless such increases in productivity are accompanied by a voluntary restriction on these raw material exports. As such a voluntary restriction is being practically hard to apply and sustain, SSA shall continue to liberalize internal markets and pursue higher growth rates in labor productivity to cut the losses in international trade. Our simulations show that freer intra-African trade with small and steady increase in productivity can have significant impacts on welfare and employment.

Spatial and sectoral determinants of regional productive capacity: theoretical genesis and methodological principles of the study

In the pre-war period, the stagnation of economic productivity was observed in Ukraine. It was manifested by a decrease in the annual growth rates of labor and capital productivity. The natural consequences of this include the inability to increase the growth rate of employees’ wages and their purchasing power, the increase in the share of raw material exports in the total volume, the country's growing dependence on energy imports, etc. The lack of positive productivity dynamics is related to the lack of active encouragement of domestic enterprises to improve resource efficiency. The article aims to substantiate the theoretical and methodological foundations of the study of the productive capacity of the regional economy in Ukraine and determine its potential growth accelerators across spatial and sectoral determinants. The evolution of the theoretical basis of the concept of economic productivity at the national and regional levels is examined. Based on the interpretation of the concepts of “productivity” and “capacity”, the authors offer their definition of the meaning of the term “regional productive capacity”. The article characterizes the achievements of foreign researchers regarding the study of regional development features and problems of productivity; identification and assessment of the impact of spatial factors on the productivity of the economy of territorial systems of different hierarchical levels; identification of spatial determinants of regional productive capacity. Based on the analysis of the experience of empirical research on assessing the impact of spatial factors on economic productivity, the article outlines a number of its growth patterns. The specific nature of interregional and intraregional productivity disparities is presented. The article proves that the interaction of spatial and sectoral determinants determines the level of productivity of the national, regional, and individual territorial communities’ economies. Special attention is paid to the issue of resource productivity. Ways for further theoretical and practical studies of regional productive capacity are suggested.

The impact of accumulation, human capital and institutions on productivity growth in the advanced economies and developing countries

According to the authors' calculations, such an important determinant of economic progress as the share of total investments (TIs) in physical and human capital (PK and HK) in GDP, having amounted for the whole world at the stage of the 1st and 2nd industrial revolutions (IR) in 1800-1950 to 12 to14%, increased by 2016-2020 (stage of transition from the 3rd to the 4th IR) 3.5 times, exceeding 2/5 of the world GDP. By this key parameter, developing countries (DCs) as a whole have already surpassed the advanced economies (AEs; in 2016-2020 45% vs 43% of GDP). However, the share of investments in HK in TIs in the DCs is on the whole only half of that in the AEs (1/4 vs 1/2). Calculations and models, made for the AEs, the main regions and a number of large DCs, revealed that (1) in the long term, an increase in the share of their TIs significantly and markedly affected dynamics of their per capita GDP (PCGDP), labor productivity (LP) and total factor productivity (TFP). Higher growth rates of LP in large DCs compared to large AEs in 2000-2020 were due respectively by 2/5 and 1/4 to much more substantial increase in the former of their TIs in GDP, as well as to the increase of their government effectiveness and the quality of institutions. (3) Almost fourfold superiority of the AEs over DCs in terms of PCGDP is brought about by 1/3; 2/5 and 1/5, respectively, by higher values in the former of their indicators of technological development, educational attainment of the population and the rule of law.

On Labor Productivity in OECD Countries: Panel Data Modeling

Labor productivity is a key measure of economic performance and an essential factor of improving the living standards. High labor productivity growth rate can reflect increased use of capital, and/or a decrease in the employment of low-productivity workers. Thus, it can be said that labor productivity indicators reflect the effectiveness of labor utilization, labor cost, and revenue accumulation. This paper studies the impact of labor market conditions, economic integration, market size, and institutional quality on labor productivity in Organization for Economic Co-operation and Development (OECD) countries during the period from 2005 to 2017 by using panel data technique. The study finds that the random effects panel data model is the appropriate model to fit this data. The results suggest that average annual hours worked, labor force participation rate, and inflation rate have a negative significant impact on labor productivity in OECD countries. However, annual growth rate of GDP per capita, value added of industry, and control of corruption have a positive significant impact on labor productivity.

The evolution of China's marine economic policy and the labor productivity growth momentum of marine economy and its three economic industries

This paper analyzed the phased changes and direction of China's marine economic policy after the reform and opening up, the changing characteristics of the scale of the marine economy and the output structure of marine tertiary, secondary and primary industries. A shift-share analysis model was used to decompose the labor productivity growth rate of China's marine economy and its three economic industries into the corresponding contributions of the structural shift effect caused by institutional changes and the within-growth effect caused by technological progress. The results showed that from 2005 to 2015, the within-growth effect caused by technological progress contributed approximately 92.74% to the labor productivity growth of China's marine economy, while the contribution of the structural shift effect was approximately 7.25%. The contribution of marine tertiary industry, secondary industry and primary industry to the growth of marine economic labor productivity decreased in turn. China’s marine economic policy regulated marine industrial structure and promoted marine scientific and technological progress through market-oriented incentive, industrial regulation constraints and support for technological innovation, etc. There was good synergy between the changes in policy and the change trend of the structural shift and within-growth effects in the labor productivity growth process of the marine economy and its three economic industries. This showed that China's marine economic policies have an important impact on scientific and technological progress and industrial structure changes within the marine economy.

What to make of the Kaldor-Verdoorn law?

Abstract The Kaldor-Verdoorn law refers to a positive but less than one-for-one causal relationship between the growth rates of output and labour productivity. While empirical research has found that the Kaldor-Verdoorn coefficient lies between 0 and 1, the interpretation of this finding remains unclear. In this paper, we present a model to derive the Kaldor-Verdoorn law. Our results show that the Kaldor-Verdoorn coefficient is jointly determined by the elasticity of factor substitution, labour supply elasticity, the profit share and the increasing returns to scale (or demand-induced technical change) parameter. Hence, estimated Kaldor-Verdoorn coefficients cannot be used, on their own, to infer the presence of aggregate increasing returns to scale—with the exception of the benchmark case of Leontief Production technology (and steady-state analysis coupled with the assumption of Cobb-Douglas production technology). We also report a surprising result: an economy without aggregate increasing returns to scale (or without any demand-induced technical progress) can generate a Kaldor-Verdoorn coefficient that lies between 0 and 1.

The Contribution of Agricultural Manufacturing in the Egyptian Economic Growth: Kaldor's Hypotheses

This research uses a Kaldor’s hypotheses to estimate the contribution of the agricultural manufacturing sector to increase the economic growth of the Egyptian agricultural sector during the period 1997-2018. It based on the three "hypotheses" of growth. Kaldor model depends on three hypotheses related to the relationship between the growth of manufacturing sector and the economic growth. The study used the growth rate, dummy variable, Ordinary Least Square (OLS) test, and used CUSUM squares test and Chow breakpoint test. In addition to, testing the stability of time series depended on E-view 11.0. The food, beverage, tobacco industries and textiles industry are the largest two sectors in the Egyptian agricultural manufacturing industries, as they represent about 83.58% of the total value of the agricultural manufacturing industries output during the period 1997-2018. The results shows that the increase of real growth rates of food, beverage, tobacco industries and textile production lead to increasing in the real growth rate of agricultural output. According to CUSUM Sq test and Chow test, the year 2003 is considered as the switch point for the study variables. Also, if the real agricultural manufacturing production growth rate increases, the real agricultural manufacturing labor productivity growth rate will increase. And if the real growth rate of agricultural manufacturing production value increases, the real growth rate of agricultural non-manufacturing labor productivity will increase. The results of the research assist decision-makers in the field of manufacturing industry and agriculture in Egypt, especially in the stages of economic development.