Low Labor Productivity Research Articles

Solutions to Enhance Foreign Direct Investment Attraction to Vietnam in the Digital Transformation Phase

The reality shows that developing countries often face capital and technology shortages, outdated industrial production techniques, small-scale production, low labor productivity, low per capita GDP, low GDP growth rates, low savings rates, underdeveloped foreign trade with a trade deficit, exporting raw materials and semi-processed goods, a development gap compared to advanced countries, and dependence on developed countries in terms of trade, technology, foreign aid, and expertise. This is referred to as the "vicious circle" of poverty by Paul A. Samuelson, which requires an external boost. According to him, this boost includes capital, technology, expertise, etc. Therefore, attracting foreign direct investment (FDI) is considered an effective solution for the socio-economic development of developing countries. Consequently, these countries pay special attention to studying the factors that influence FDI attraction policies to timely adjust their policies to optimize FDI attraction and serve the process of economic and social development. Evaluate the attraction of foreign direct investment and examine the factors influencing foreign direct investment attraction. Based on that, propose solutions to enhance the attraction of foreign direct investment in the current phase.

SPATIAL-GEOGRAPHIC FEATURES OF THE DEVELOPED REGION "KRAISHTE" IN THE WESTERN PARTS OF BULGARIA

This article is devoted to a particular region in our country, the Craiște. It is a region located in Pernik, Kyustendil and Sofia districts. The region has its important strategic importance as a bridgehead to the capital. The presentation gives a brief historical overview of the chronology of the development of the region and its socio-economic, ethnographic and geographical development. The main economic indicators related to the emerging serious barrier to the economic development of the municipalities of the cross-border region is the low labour productivity and the extremely low cost of labour. The specific features of agriculture and forestry, extractive industries and industrial profile, services and tourism are highlighted. The analysis carried out has its spatial patterns.

State support for the cooperative movement in the Republic of Kazakhstan

The study of formation and effective development of agricultural cooperatives in rural areas is of particular importance in the context of improving the legislative and legal mechanism for increasing the competitiveness of agricultural industry, effectiveness of mutually beneficial economic relations, and promotion of cooperative processes in agro-industrial production. The goal is to substantiate the need to optimize the system of state regulation and support for agricultural cooperation. Methods – analytical, monographic, comparison and generalization. Results show the problems that make it difficult to unite small forms of farming in rural areas: low labor productivity, limited access of farmers to technical and information resources and services, lack of modern equipment. The authors note that regulatory governance and oversight, financial support, advisory services and training are needed. Conclusions - cooperation of medium and small enterprises is the only opportunity to produce a modern and competitive product comparable in cost to the products of large agricultural producers. They are of great socioeconomic importance, since they provide employment to a significant number of villagers, contribute to their effective functioning in a market economy through the expansion of agricultural production, the growth of competitive potential, which facilitates entry into the market, ensuring the profitability of business entities, and allows solving issues of import substitution and development of the infrastructure of RS, improving the level and quality of life of the rural population. Such cooperatives adapt their operations to agricultural technological innovations in the use of fertilizers, growing crops and livestock, agricultural mechanization, and the use of new resource-saving energy sources and communication systems. Small farms united on cooperative principles can fully demonstrate their inherent advantages in the future.

Profitability, Productivity, and Technical Efficiency of Cretan Olive Groves across Alternative Ecological Farm Types

Olive groves are an important element of the Mediterranean landscape and heritage and contribute significantly to the area’s rural economies. The primary interest of researchers and policymakers lies in the economic performance of this activity, especially in light of the resource limitations imposed by climate change. Profitability and productivity analyses, as well as technical efficiency methodologies, have been applied to evaluate the economic sustainability of olive cultivation and have often identified shortcomings in farms’ management and structure. In our study, we use profitability and productivity indicators, as well as data envelopment analysis, to estimate the economic performance of Cretan olive groves and a second-stage regression analysis to determine factors that affect efficiency scores. One novelty of this study is that the results are presented across alternative ecological approaches, i.e., organic, conservation, low-input, and standard farms. Our findings indicate that organic farms perform better in the examined economic indicators. On the other hand, standard farms demonstrate a low labour productivity, while conservation and low-input farms exhibit an inefficient use of capital. Scale inefficiencies indicate that certain farm types should also increase in size to be more competitive. Finally, our analysis suggests that training, market orientation, and a commitment to farming positively affect the efficiency of olive groves.

Factors of Talent Retention in Malaysian Construction Industry: Employee’s Perspective

Engaging and retaining high-quality employees is critical to achieving an organization’s objectives. Employee turnover can cause a shortage of skilled manpower, ultimately leading to reduced innovation, lower labour productivity, etc. In the construction industry, employee turnover will cause project delays, project quality defects, client dissatisfaction, and profitability challenges. As the construction industry is critical to Malaysia’s development, organizations must ensure smooth operations by retaining their talents. This paper reports on the significant factors of talent retention in the Malaysian construction industry. The methodology adopted was literature review and quantitative method via a questionnaire survey. 12 predefined factors identified from literature review were presented to the respondents in the questionnaire. The target respondents for this study were construction professionals from G7 contractor, and a total of 77 responses were obtained. The significance of the factors was assessed and ranked using their average mean scores. The top five factors influencing talent retention are: 1) management and social support; 2) compensation and benefits; 3) work environment; 4) organizational commitment (employee loyalty); 5) nature of work (meaningfulness). This study would serve as a reference for employers to take necessary proactive action to retain employees and ensure the efficiency and survival of the industry.

Analysis of Labor Productivity in Single and Multi-household Grassland Management Patterns: A Case Study in Maqu County, Qinghai-Tibetan Plateau

This study investigated labor productivity in meat and milk/dairy production within single and multi-household management patterns, based on primary data collected from 156 randomly selected herder households in Maqu County, Tibetan Plateau. The results showed that in the rotational grazing system, herder households in both single and multi-household management patterns achieved higher labor productivity for meat production (70.36 Kg/man-day and 51.21 Kg/man-day, respectively) compared to the overall study households (40.89 Kg/man-day). In contrast, within the continuous grazing system, the single-household management pattern recorded lower labor productivity for meat production (23.04 Kg/man-day). Significantly, regional variations in the distance between pastures and market centers led herder households in the single-household management pattern within the continuous grazing system to achieve superior labor productivity for milk and dairy production (19.74 $/man-day) compared to the overall study households (15.44 $/man-day). In the rotational grazing system, labor productivity for milk and dairy production stood at 12.63 $/man-day for the single-household management pattern and 8.30 $/man-day for the multi-household management pattern. These findings underscore the complexities associated with achieving high labor productivity simultaneously in both meat and milk/dairy production within the same grassland management pattern. While the multi-household management pattern shows promise in reducing labor inputs, it also grapples with challenges in achieving substantial production levels for meat and milk/dairy products. To address these challenges, policymakers should consider follow-up measures that prioritize the simultaneous enhancement of meat and milk/dairy production within the multi-household management pattern. Special attention should be given to reducing the distance between herder households and market centers to facilitate the sale of milk/dairy products. Simply advocating for the broader adoption of the multi-household management pattern may fall short without addressing these production-related hurdles.

Application of mining technology by the combination of ANSH equipment to longwall in Seam 6 of Mao Khe coal mine, Viet Nam

Currently, in the Quang Ninh coalfield, exploiting the seams with medium thickness and dip angle of over 50 degrees is often difficult, so labor productivity and safety are low. It is necessary to research and apply advanced mining technology to medium thickness seams with dip angle of over 50 degrees in order to improve efficiency and safety. Studying the actual production in the Mao Khe coal mine shows that the mining technology for the condition of the seam with medium thickness, and dip angle over 50 degrees is mainly mining technology by drilling and blasting. This technology has the disadvantage of low labor productivity and unsafety. In this paper, the authors have researched and proposed mining technology by the combination of ANSH equipment to exploit the longwall in Seam 6 of Mao Khe coal mine. This is a fully mechanized mining technology, coal cutting by plow, combined with shield. Analysis of economic and technical indicators shows that this technology has been more effective and productive than the mining technology currently applied in other coal mines. This application will benefit not only Mao Khe coal mine, but also to other coal mines of Quang Ninh coalfield with similar coal seam conditions.

Analysis of the effect of nutritional status, workload and work period on worker productivity

Introduction: Worker productivity measures quantity and quality in specific units to produce outputs efficiently. Low labor productivity is one of Indonesia's biggest issues. In these times of constant change, rising economic conditions, and increased dominance of the market economy system, there is an increase in fierce competition between businesses operating in similar industries. The rise and fall in labor productivity are influenced by various variables, including those at work, the environment, and personal issues. This research aims to identify the variables that influence employee productivity. Method: This research's methodology employs cross-sectional observational research with quantitative approaches. The participants in this study were employees of PT. Z in Samarinda, with a sample size of 45 participants. Result: The study's findings point to several variables impacting employee productivity. PT. Z. According to the analysis, productivity is determined by workload, working time, and nutritional status. It is evident from the significance value's findings, which have a value of 0.05. Conclusion: Workloads that are above the employee's capabilities, working hours, and irregular nutritional state can impact the degree of productivity. Implementing fit-to-work policies, a healthy diet, regulating the workload, and obtaining enough rest are some examples of the modifications that must be made to increase workers' productivity.

The Effects of Industrial Park Development on Export Earning, Employment and FDI Attraction: Evidence from Ethiopia

This study examines the effects of industrial parks on export earnings, employment creation, and FDI attraction in Ethiopia. Furthermore, the study aims to identify the constraints and potential to achieve sustained and dynamic results expected from the industrial park development. Despite varying degrees of successes and failures, several countries have utilized industrial park and other types of special economic zones as a policy instrument for fostering economic transformation. Ethiopia is one of the African countries that have adopted industrial park development as a policy tool to enhance its economic growth and transformation. However, the effect of the industrial park policy initiative of the country is not well researched. The analysis of the study reveals that industrial parks in Ethiopia have contributed statistically significant effects on export earnings, employment creation, and FDI attraction with significant levels of p= <.001. The analysis also showed that the top five binding constraints for the effectiveness of the industrial park development are low labor productivity, domestic raw material supply constraints, weak forward and backward linkage, transport cost and logistic constraints, and institutions’ capacity constraints. On the other hand, the availability of a trainable labor force, raw material potential, preferential policies and incentives, the economic growth of the country, and the labor wage rise in China and other emerging countries are identified as the top five potentials and opportunities to achieve sustained and dynamic benefits of industrial park development in Ethiopia.

Unethical decision making and sleep restriction: Experimental evidence

Insufficient sleep is costly to organizations (e.g., direct health costs, cognitive errors, accident risk, and lower labor productivity). In this current study, we examine another more hidden cost associated with insufficient sleep– unethical behaviors. Using a hybrid field/lab experimental approach, participants were randomly assigned to a week of sleep-restriction or well-rested sleep levels in their at-home (naturalistic) environment prior to decision making. We found that sleep restricted participants cheated significantly more in two honesty tasks, while anti-social choices were, surprisingly, not affected. Because sleep restriction promotes reduced deliberation, these results contribute to our understanding of the cognitive underpinnings of decision making. Importantly, these findings have practical implications to managers who want to reduce dishonesty in the workplace. For example, our results suggest that workplace health promotion programs focused on good sleep hygiene would additionally benefit the company in terms of indirectly promoting ethical conduct in the workplace.

An Exploration of Construction Craftspeople Apprentice Training: Evidence from the UK

ABSTRACT Today, demographic data shows that the workforce in the construction sector is aging. The prevalence of injuries, such as musculoskeletal problems, and low labor productivity have been linked to the aging construction workforce. To improve the supply of young workers to the industry, stakeholders, i.e. government and the private sector, are investing in construction craftspeople apprenticeship programmes. These programmes address two keys issues: (i) provide training to young workers for construction jobs and (ii) reduction in youth unemployment. This qualitative study explored the practice of mentoring during construction craftspeople apprenticeship within the UK. Eighteen people who are involved in the various stages of apprentice training were interviewed about mentoring practice. The data was transcribed and qualitatively analyzed. The data highlights the prevalence of informal mentoring of proteges during the period of craftspeople apprenticeship. Lack of structured mentoring programme and inadequate support from mentors were identified as the main barriers to effective mentoring. Also, building strong relationship, patience, vast industry experience and good communication skills are attributes of effective mentors. The study concludes by providing insights into its theoretical contributions and practical implications for vocational training and the construction sector.

THE MECHANISM OF MANAGEMENT OF DIGITAL TRANSFORMATION OF ECONOMIC ACTIVITY OF INDUSTRIAL ENTERPRISES

The digital transformation of industry allows a significant increase in labor productivity and the growth of gross domestic product in the manufacturing sector, which ultimately leads to an increase in the welfare of the country’s citizens. However, to solve the existing systemic problems, such as low labor productivity, irrational use of resources, low efficiency of production facilities, etc., it is necessary to implement an effective management mechanism. The implementation of such a mechanism will solve the problems of managing the digital transformation of industrial enterprises, improve the efficiency of production facilities and reduce transaction costs and the complexity of forming responsible cooperative chains.
 The purpose is to develop a mechanism for managing the digital transformation of economic activities of industrial enterprises.
 Methodology in article: the research methodology is based on existing theoretical developments relating to industrial economics, management issues of industrial complexes, industries, enterprises.
 Results: the mechanism for managing the digital transformation of the economic activities of industrial enterprises, representing a set of methods and tools used to change business models and management processes through new paradigms based on digital thinking, revision of organizational processes and digital culture of the industrial enterprise, optimization of the enterprise management system as a whole.
 Practical implications: the obtained results can be used in the activities of corporate industrial systems engaged in technological development, digitalization and digital transformation projects.

УКРАЇНСЬКА МОВА: ПЕРСПЕКТИВИ МАЙБУТНЬОГО ЧИ МАЙБУТНЄ БЕЗ ПЕРСПЕКТИВ? 2

The article contains an attempt to predict the future of the Ukrainian language based on such parameters as demographic power, economic power and communicative power. Due to low birth rate, early mortality, and high emigration, Ukraine suffers from depopulation for the last 30 years. According to the UN forecast, by the end of the XXI century the population of the country will be reduced by half (up to 24 million). Perhaps the only way to avoid a demographic catastrophe is the growth of immigration, in particular from the countries of the Middle East and Africa. In order for immigrants and their descendants to integrate naturally into the Ukrainian-speaking society, immigration should not be violent, but gradual, moderate, ethnically diverse (without a marked predominance of any ethnic group). An efficient economy is an essential factor of language sustainability. Therefore, the future of the language must be ensured not only legislatively and demographically, but also economically. Due to the backwardness of the national economy (agricultural and raw-material specialization, low labor productivity, lack of investment and modern technologies), the economic power of the Ukrainian language remains minimal. The Ukrainian language will be fully established with the development of an innovative, hightech, competitive economy, when Ukraine becomes a profitable and equal partner of the world’s leading states. The strong position of the language also depends on its communicative power. This parameter implies not only the presence of language in all important areas of communication, but also the availability of cultural and intellectual products created in it — significant in quantity, high in quality. This will increase the prestige of the Ukrainian language and create conditions for it to achieve communicative parity with the world’s leading languages. The general prognosis for the Ukrainian language is favorable, provided that the active cultural activity of its speakers and the comprehensive success of the Ukrainian state.

УКРАЇНСЬКА МОВА: ПЕРСПЕКТИВИ МАЙБУТНЬОГО ЧИ МАЙБУТНЄ БЕЗ ПЕРСПЕКТИВ? 1

The article contains an attempt to predict the future of the Ukrainian language based on such parameters as demographic power, economic power and communicative power. Due to low birth rate, early mortality, and high emigration, Ukraine suffers from depopulation for the last 30 years. According to the UN forecast, by the end of the XXI century the population of the country will be reduced by half (up to 24 million). Perhaps the only way to avoid a demographic catastrophe is the growth of immigration, in particular from the countries of the Middle East and Africa. In order for immigrants and their descendants to integrate naturally into the Ukrainian-speaking society, immigration should not be violent, but gradual, moderate, ethnically diverse (without a marked predominance of any ethnic group). An efficient economy is an essential factor of language sustainability. Therefore, the future of the language must be ensured not only legislatively and demographically, but also economically. Due to the backwardness of the national economy (agricultural and raw-material specialization, low labor productivity, lack of investment and modern technologies), the economic power of the Ukrainian language remains minimal. The Ukrainian language will be fully established with the development of an innovative, high-tech, competitive economy, when Ukraine becomes a profitable and equal partner of the world’s leading states. The strong position of the language also depends on its communicative power. This parameter implies not only the presence of language in all important areas of communication, but also the availability of cultural and intellectual products created in it — significant in quantity, high in quality. This will increase the prestige of the Ukrainian language and create conditions for it to achieve communicative parity with the world’s leading languages. The general prognosis for the Ukrainian language is favorable, provided that the active cultural activity of its speakers and the comprehensive success of the Ukrainian state.

Specialisation precedes diversification: R&D productivity effects

We model how R&D enters the innovation system in four ways (intramural, extramural, cooperative, and spillover). Despite measuring three different spillovers together, for a very large sample of European enterprises we conclude that the productivity effects of spillovers were at best smaller than intramural R&D productivity effects. We also find that building on the greater skills and experience of enterprises already undertaking R&D (intensity) raised labour productivity more than providing support for those beginning R&D (extensity). Optimal extramural R&D intensity was higher than the actual level; sample firms could boost productivity either by abandoning extramural R&D or by doing much more. There were substantial differences in our sample between enterprises and countries in terms of R&D spillovers. Greater multinational corporation incidence in new EU members accounted for these countries' high direct R&D intensity productivity, regardless of their generally low overall labour productivity. Absorptive capacity made little difference to the utilisation of spillovers.

Measuring and understanding regional inequality through the lens of the Indonesian experience:

This article reviews the book by Akita and Kataoka (Regional inequality and development: Measurement and applications in Indonesia, 2022). The book first provides an overview of various measurement methods of regional inequality. Next, it presents four case studies that deepen our understanding of regional inequality in the context of the development challenges of Indonesia: decentralization, premature deindustrialization, financial crisis, low labor productivity, among others. Overall, this book provides an excellent introduction and application of inequality decomposition methods in the context of regional disparities and structural change.

PREREQUISITES OF ADAPTIVE MANAGEMENT OF BUSINESS PROCESSES IN THE CONDITIONS OF DIGITALIZATION: THE NATIONAL DIMENSION

The article defines the factors that form the environment of adaptive management of business processes in the conditions of digital transformation, and the nature of their influence. It was determined that the characteristic features of digital technologies are integration, intellectualization, and individualization. It is noted that the business process as a sequence of interrelated events that ensure the result of the activity of the subject of economic activity depends on many factors at each of the stages. It has been determined that the orientation of business processes on performance determines the objective necessity of classifying factors according to the nature of the impact – positive or negative. Among the favorable conditions, structural shifts in the labor market under the influence of digitalization, the formation of cyber-physical systems and platform technologies are highlighted. Structural shifts in the labor market under the influence of digitalization are associated with changes in labor relations, forms of employment, the quality of labor resources and their motivation, which will certainly contribute to changes in business models and their management. Cyber-physical systems, embodying material and virtual space, contribute to prompt response to problem situations, effective use of resources, and synchronization of work operations. Platform technologies help reduce transaction costs and save time. The threats of unfavorable factors are in the demographic and institutional planes and are related to deglobalization, resource failure. Unfortunately, it has been determined that the negative trends associated with the decrease in the number of labor resources and the deterioration of their quality characteristics will intensify. It is substantiated that in Ukraine at the current stage of development, the institutional environment does not have enough motivating motives for the effective use of the potential opportunities of business entities in the field of digitalization. It is noted that the resource failure is multi-layered and is a consequence of imperfect state regulation of the national economy, institutional environment, and low labor productivity. Prospects for further research are related to today’s challenges and substantiation of the possibilities of using digital technologies in the construction of business models during the post-war reconstruction of our state.

Několik statisticko-analytických poznámek k charakteru krize 2020-2021

The present work is based on a hypothesis that the Czech economy was showing signs of economic deceleration and a potential slump into deeper growth problems way before the outbreak of the COVID-19 pandemic, i.e., at least in the year 2019. However, the present text does not intend to thoroughly confirm this hypothesis because in order to do so, a longer timeline of key economic indicators needs to be analysed. What it does present is at least a partial argumentation supporting the abovementioned hypothesis and some basic calculations. It proposes two ways towards its confirmation. The first one is a comparative analysis of individual - especially European - economies' response to subsiding external influences, i.e., to the weakening of the effects of the pandemic on the economy. The second way is at least a partial analysis of key macroeconomic indicators from the time before and during the pandemic, with an emphasis on detectable divergences in the development. The conclusion of our research is the finding that as early as in 2019, the Czech economy was showing signs of imminent deceleration of growth, which would probably have turned into stagnation and possibly a certain decrease in economic activity. The conclusions indicate that the reason behind such development was a massive but in fact little effective investment activity in the Czech economic environment, which is historically related to the structure of the economy and to the position of the Czech industrial sector in supplier relationships. Two related phenomena arise from that: firstly, a relatively low labour productivity, with producers domiciled in the Czech Republic reaching quite a low volume of value added, and secondly a massive capital outflow in the form of profits paid to parent companies abroad. The final part of the paper outlines some potentially effective steps which might lead - under favourable circumstances - to restructuring processes in the Czech economy. Due to the date of finishing the research, the paper does not include the consequences of the War in Ukraine.

Productivity slowdown and tax havens: Where is measured value creation?

Based on French firm-level data, we evaluate the contribution of the micro-level profit-shifting –through tax haven foreign direct investments– to the aggregate productivity slowdown measured in France. We show that firm measured productivity in France declines over the years following the establishment in a tax haven, with an average estimated drop by 3.5% in apparent labor productivity. To isolate the contribution of multinational enterprises' (MNEs) tax optimization to the decline in productivity, we then exploit the 2006 Cadbury-Schweppes decision of the European Court of Justice limiting the extent to which member States can counter European MNEs' tax planning strategies. We find that multinational groups benefiting from that loosening of the legal constraints do exhibit a lower labor productivity following that ruling. Finally, given these firms' weight, our results imply an annual loss of 5.7% in terms of the aggregate annual labor productivity growth.

Delays of construction projects in Makkah from the point of view of the consultant

The study investigates the causes of delays in construction projects in the Makkah region of Saudi Arabia. The objective is to determine the most significant factors from the consultant designer and supervisor’s perspectives. This study is part of a series designed to explore the causes of delays from the perspective of different stakeholders in the construction industry. A comprehensive survey of 69 questions has explored various possible delay factors. All factors are grouped into eight categories based on their relevance and orientation. The factors were recorded and ranked by their relative importance index concerning their impact and frequency. The top three factors in their impacts are found to be (1) difficulties in financing the project, (2) poor management of the site and lack of distribution of tasks (3) low productivity of labor. The first two are delay factors related to the contractor group, and the third is related to the labor group. The highest in frequency relative importance index is (1) delays related to sub-contractor’s work, (2) lack of experience of the owner in the approval of the supervision team and (3) inadequate estimate of task duration and scheduling, inadequate training, and adopting new techniques. In the overall average of the impact index of all groups, the highest was the delays due to the contractor group, followed by delays due to the designer group, and finally, delays related to the labor group. The overall average of the frequency index of the whole group seems relatively low. The study’s novelty lies in the large number of delay factors that have been investigated, by collecting and analyzing actual data, focusing separately on the opinions of all stakeholders, and then comparing them to find objective results related to delays in construction projects in the Makkah region.