Private Sector Productivity Research Articles

Impact of fiscal policies on the labor market with search friction: An estimated DSGE model for Japan

This study investigates the effects of heterogenous fiscal policies on Japan's labor market amidst increasing national debt and economic downturns. We develop a Dynamic Stochastic General Equilibrium model incorporating labor market search friction, staggered wage negotiation, price stickiness and productive government employment. This model is used to compare the impacts of multiple fiscal policies—including government employment spendings, direct government expenditures, and tax cuts—on employment. The model, estimated with macroeconomic data of Japan spanning 1985 to 2019, offers a detailed look at how fiscal policies influence employment dynamics.Our analysis shows that increasing employment within the government sector significantly lowers unemployment rates, with a long-term unemployment reduction effect (multiplier) of −0.4. Collectively, all fiscal policies contribute to 23.96 % of the employment rate fluctuations, with government employment policies playing a dominant role, accounting for 8.55 % of these variations. This underscores the significant stabilizing effect of government employment policies in the labor market and their capacity to boost private sector employment through enhanced household income and increased private sector productivity. This research not only sheds light on the critical role of public sector interventions during economic downturns but also enhances our understanding of the effectiveness of Japan's fiscal policies.

Financial Inclusion and Nigerian Economic Growth: An Empirical Investigation (2001-2021)

The aim of this study was to determine the impact of financial inclusion on economic growth in Nigeria. the study used an ex-post facto research design and investigated variables such as credit to the private sector (CPS), ATM transactions(ATM), and gross domestic product (GDP) as indicator variables for financial inclusion and economic growth, respectively. The Statistical Bulletin of the Central Bank of Nigeria, provided the annual time series statistics on private credit, ATM usage, and GDP from 2001 – 2021. Using the ordinary least square (OLS) approach, the data were examined. The study established credit to the private sector is positively related to economic growth and is statistically significant, However, ATM transactions have a positive and statistically insignificant relationship with economic growth in Nigeria The study suggests that monetary authorities implement measures to promote and increase the availability of credit to the private sector. r e.g., through reducing interest rates to levels that are conducive to growth objectives as this will favor economic development.

Productivity of older employees in comparison to other age groups: a cross-country analysis

The main aim of the paper was to estimate the impact of older employees aged 55-74 on productivity compared with other age groups. The research (foundation of the paper) was conducted in 72 countries in the period 2000-2021. Countries were divided into three groups composed of 24 economies according to their GDP pc in 2021, i.e. the lowest GDP pc, the middle GDP pc, and the highest GDP pc countries. The study covered the five age and sex groups of employees: 25-34, 35-44, 45-54, 55-64, and 65-74. The Productive Capacities Index (PCI) built by UNCTAD and its selected categories were assumed to be dependent variables. The research results obtained for three groups of countries indicate that older employees had stronger positive impact on improving PCI than younger employees, especially on human capital development and private sector productivity. Our outcomes also suggest that older employees are better integrated than younger age groups with ICT tools that increase work productivity. To sum up, we can state that older employees can be a key factor in economic development due to their knowledge and experience, provided that others are willing to learn from them and they receive relevant organizational support.

Impact of financial market development on economic growth: evidence from Sri Lanka

The study focuses on the impact of financial market development (FMD) on economic growth in Sri Lanka. The study investigates positive association flows from finance to growth, called the “supply-leading hypothesis”, in different directions such as positive, negative, bidirectional and neutral. FMD impact is considered in both depth and efficiency aspects. Natural logarithms (Ln) form of all gross domestic production in real terms, total domestic credit, percentage of loans and advances to total deposits, inflation index, market capitalisation of listed domestic companies and money supply as liquidity indicator are concerned, first being the dependent variable, next two as depth indicators and last three explanatories as efficiency indicating variables. Changes in both private sector production volume Index and government expenditure are also included into the model as independent variables to represent the non-financial market impact. Secondary monthly time series data published by the Central Bank of Sri Lanka from January 2008 to June 2019 of 138 observations are analysed using the E-views version 10. The ARDL model is applied. The study suggests a significant long-run impact of FMD on economic growth in Sri Lanka. Furthermore, inflation hinders the FMD. Up to the bearable limit, financial depth positively affects, while the higher degree of financial depth negatively influences economic growth in Sri Lanka. The impact of the non-financial market is comparatively insignificant on economic growth.

Domestic Borrowing and the Nigerian Economy: A Bayesian VAR Analysis

ABSTRACT: The Nigerian government has borrowed for more than three decades to fund the growing fiscal deficit based on a weak tax revenue base. After the repayment of the country's foreign loans in 2006, the borrowing structure has been dominated by domestic loans. Between 2006 and 2020, domestic borrowing has grown by more than 800 per cent. This study examines the effect of domestic borrowing on Nigeria's macroeconomic variables from 1975 to 1980. The variables examined against the effect of domestic borrowing include economic growth, financial development (broad money supply and credit to private sector), external borrowing, interest rate, inflation, industrial production, private investment, trade openness and population growth rate. The study utilised the Bayesian Vector Autoregressive (BVAR) model. The BVAR approach gives more realistic estimations than other VAR models as it considers prior information steady states during analysis. The study also adopts the Cholesky impulse response function and variance decomposition approach in the investigation. The study found a long-run equilibrium relationship between domestic borrowing and other macroeconomic variables. Also, domestic borrowing positively and significantly affected economic growth, industrial production and inflation. However, domestic borrowing negatively and significantly affects trade openness. Although the effect of domestic borrowing on the financial development variables (broad money supply and credit to the private sector) is negative, it is insignificant. The Bayesian VAR impulse response simulation demonstrates that the fiscal policy shock from domestic borrowing impacts the macroeconomic variables in line with the estimated regression results. As a follow-up, the variance decomposition results show that the decomposition of the shocks from government domestic borrowing is borne more by external borrowing, broad money supply and interest rate in the order of magnitude. The study recommends a restriction in monetary policy to benchmark and closely checkmate the aggressive spending from domestic borrowing. Also, the Nigerian government should improve investment in infrastructure to enhance private sector productivity and expand taxes revenue base to mitigate the reliance on borrowing as a source of funding for fiscal deficit. Furthermore, the country's productivity must be coordinated by the government to expand the sources of foreign exchange earnings to enhance stability in the country's external sector.

THE IMPACT OF HUMAN RESOURCE PLANNING ON PRODUCTIVITY

This research is designed to cover Human Resources Planning in relation to Productivity in Private Sector. As a Human Resource Manager, Human Resources Planning are relevant function of management in an organization for the purpose of actualizing set goals and objectives. Human Resources Planning is a process of analyzing an organization Human Resources needs under changing condition and developing the activities necessary to satisfy these needs. Human Resources Planning to aid to find out actual problem affecting management of Nigerian Sonar System Social Business Management Limited using primary and secondary data as a source of information. Good human resources planning is responsible for higher productivity in the private section. There should be regular and adequate personnel planning in organization to cater for lapses or inadequacies where they exist. Keywords: planning, productivity

From monopoly to voice effects? British workplace unionism and productivity performance into the new millennium

AbstractBritain has featured prominently in debates about unionism and productivity. This article suggests a recent revolution in the productivity effect of British unionism. A thorough review of extant evidence at various levels of aggregation indicates that whatever the broader cost to employee welfare and well‐being, the hollowing and erosion of workplace unionism under Thatcherism delivered a one‐off productivity dividend. However, by the turn of the millennium, extant Workplace Employment Relations Survey (WERS) analysis shows that workplace unionism, where it remained, was no longer robustly linked to poorer productivity performance. Our private sector analysis of WERS2011 confirms this, while our analysis of the WERS2004–2011 panel indicates that stronger workplace unionism now positively promotes private sector productivity. A thorough contemplation of the shifting concomitants of modern British unionism suggests a variety of processes which may underlie our striking panel findings, underscoring the suggestion that there has been a revolution in British unionism's productivity implications, but also indicating mechanisms which may underlie positive productivity effects of joint regulation already apparent in other countries.

What's new in the drivers of electricity access in sub-Saharan Africa?

This study examines the drivers of electricity access in sub-Saharan Africa in 48 chosen countries from 1995 to 2019, accounting for endogeneity of variables using a new novel xtdpdgmm command that implements two-step system GMM (Generalized Method of Moment) estimators. The findings show that in sub-Saharan Africa, domestic credit to the private sector and the food production index are the two most important factors influencing access to electricity. Domestic credits to the private sector and food production are statistically significant and have a positive impact on increasing regional electricity access. Thus, having access to credit from financial institutions is crucial for many households in order to have access to electricity. The result reveals that agricultural productivity improves food security by increasing access to electricity. Our study recommends that governments in sub-Saharan Africa should boost agricultural production and provide a favorable environment for the banking sector and other microcredit institutions to finance electrification initiatives. In order to improve the region's access to electricity, financial institutions, governments, and donor funding should be encouraged to finance small-scale renewable energy projects. Thus, to lower the cost of electrification in sub-Saharan Africa, increasing off-grid financing should be prioritized. These findings have significant implications for sub-Saharan Africa and other developing countries.

APPROACHES TO THE DEVELOPMENT OF THE PUBLIC-PRIVATE PARTNERSHIP PROGRAM IN KAZAKHSTAN

The transfer of infrastructure facilities to the private sector in a concession is a real mechanism for interaction between the public sector and private capital in the creation, modernization, maintenance and operation of infrastructure facilities. Currently, the issues of private sector production capacities in Kazakhstan are not fully reflected. Creating an infrastructure. Research in the field of subsurface use and individual scientific articles that consider only some aspects of this problem or are of a step-by-step and descriptive nature are not subject to this. Conceptual development and implementation of the policy of involving the private sector in infrastructure development is the "key" to improving the effectiveness of economic reforms carried out in Kazakhstan and adequately reflecting economic processes in the world. The main purpose of submitting materials in this article is to develop scientifically based proposals for the creation and development of industrial infrastructure based on Public-Private Partnership (PPP).

Insights from the evaluations of the NIH Centers for Accelerated Innovation and Research Evaluation and Commercialization Hubs programs.

The National Institutes of Health launched the NIH Centers for Accelerated Innovation and the Research Evaluation and Commercialization Hubs programs to develop approaches and strategies to promote academic entrepreneurship and translate research discoveries into products and tools to help patients. The two programs collectively funded 11 sites at individual research institutions or consortia of institutions around the United States. Sites provided funding, project management, and coaching to funded investigators and commercialization education programs open to their research communities. We implemented an evaluation program that included longitudinal tracking of funded technology development projects and commercialization outcomes; interviews with site teams, funded investigators, and relevant institutional and innovation ecosystem stakeholders and analysis and review of administrative data. As of May 2021, interim results for 366 funded projects show that technologies have received nearly $1.7 billion in follow-on funding to-date. There were 88 start-ups formed, a 40% Small Business Innovation Research/Small Business Technology Transfer application success rate, and 17 licenses with small and large businesses. Twelve technologies are currently in clinical testing and three are on the market. Best practices used by the sites included leadership teams using milestone-based project management, external advisory boards that evaluated funding applications for commercial merit as well as scientific, sustained engagement with the academic community about commercialization in an effort to shift attitudes about commercialization, application processes synced with education programs, and the provision of project managers with private-sector product development expertise to coach funded investigators.

Alternative View of Unemployment Issue among Saudi Citizens - Automatization of Local Gas Stations as a Case Study

The primary objective of this paper is to propose an alternative solution for unemployment among Saudi youth. This paper seeks to address the problem of unemployment in Saudi Arabia from a different perspective: productivity aspect. Substantially, this paper proposes solutions for the Saudi youth unemployment problem by increasing the non-oil private sector's productivity. It evaluates the macroeconomic gains of the proposed solutions, such as the number of new jobs for Saudi citizens and additional value-added. The research's main hypothesis is that increasing the non-oil private sector's productivity would significantly reduce unemployment among Saudi citizens. There are two methodologies for evaluating the expected economic benefits of increasing productivity in local economic activities. The first methodology, which is the Saudization of local gas stations by transforming the local gas stations into self-service ones (with one cashier every 8 hours for each gas station), finds that there would be more than 28,000 new jobs with reasonable salaries (at least SAR 3000 instead of SAR 1000 for at least 5 low-skilled foreign laborers) for unemployed Saudi citizens, which are socially accepted and at no additional cost to the government. The second methodology uses Leontief’s IO model to estimate the macroeconomic effects of increasing productivity in the non-oil private sector. It finds that the Saudi gross domestic product (GDP) is expected to record an additional growth rate of around 2.7 percentage points (Note 1) and to create more than 96,000 sustainable jobs for Saudi citizens within the period from 2021 to 2025.

Credit Channel of Monetary Transmission Mechanism: New Insight from SVAR-DAG Approach

The credit channel of monetary transmission mechanism gains significant importance after global financial crises. The present study has investigated the credit channel for an emerging economy of Pakistan, which has an underdeveloped financial sector. The study has collected monthly data from June 2006 to June 2018 on credit to the private sector (CPRVS), interest rate, money supply, price level, and industrial production index. The study has contributed to the empirical literature by investigating the contemporaneous causal relationships among the variables. Further, the study has investigated the effectiveness of the credit channel of the monetary transmission mechanism. The study has employed the SVAR model along with direct acyclic graphs (DAG) to identify the covariance matrix.The study notes that the credit channel is ineffective in Pakistan, and it does not contemporaneously cause economic growth (EG).Further, EG causes credit supply to the private sector. Hence, when the economy grows, the financial sector develops, and commercial banks extend more credit to the private sector. The study also notes that the interest rate has no contemporaneous impact on the CPRVS. Moreover, for robustness check, we have estimated two SVAR models, one with a real discount rate as a measure of interest rate and the other is with the real lending rate, as it is more related to the credit supply. However, both proxies give the same results, which implies that our findings are robust. Hence, we can conclude that the credit channel is ineffective in Pakistan.

THE RELATIONSHIP BETWEEN MONETARY POLICY AND PRIVATE SECTOR CREDIT IN SADC COUNTRIES

This paper empirically examined the relationship between monetary policy and private sector credit in the Southern African Development Community (SADC) group of countries using a panel autoregressive distributed lag (ARDL) co-integration technique for the period from 2009 to 2018. The Hausman test result indicated that the null hypothesis of long-run homogeneity cannot be rejected and hence we accept the pooled mean group estimators (PMGE) as a consistent and efficient estimator. The PMGE results showed that credit to the private sector and gross domestic product have a positive and statistically significant long-run impact on money supply. The impact of credit to the private sector on money supply is shown by the results to be statistically significant and positive both in the short and long run. The impact of gross domestic product on money supply was found to be statistically significant positive in the long run while positive but insignificant in the short run. The study recommends policy attention that is directed towards the appetite for accelerated growth, investment, and employment in the SADC region but more importantly with more regard to the establishment of sustained macroeconomic stability as a precondition to sustainable growth and for the creation of monetary union in the region.

The Labor Productivity Gap between Formal Businesses Run by Women and Men

ABSTRACT This study analyzes gender differences in labor productivity in the formal private sector, using data from 126 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among women- than men-managed firms. The analyses are based on women’s management, which is more strongly associated with labor productivity than women’s participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of women-managed firms relative to firms managed by men: Fewer women-managed firms protect themselves from crime and power outages, have their own websites, and are (co-)owned by foreigners. In addition, in the manufacturing sector, women-managed firms are less capitalized and have lower labor costs than firms managed by men.

Біометод — основа сталого розвитку вітчизняного землеробства

Goal. To study the dynamics of processes and the current state of application of biological plant protection products in Ukraine, the main trends in world markets for organic products and domestic production of biological products, to identify tasks for the implementation of bio methods in the context of organic farming in Ukraine. Methods. Analytical, economic and statistical, comparative analysis, graphical, cartographic. Results. On the background of significant growth in the production and use of biological plant protection products in the EU and the world, the use of safe methods of protection in Ukraine is declining. With the growth of the range of microbiological means of protection included in the «List of pesticides and agrochemicals in Ukraine», the production capacity for the production of biological products has sharply decreased. Thus, in 2019, there were 24 biofactories and bio laboratories in Ukraine, and their total number, including private-sector production, was over 45, while by 1990 there were 268 biofactories and bio laboratories in Ukraine. Conclusions. The use of environmentally friendly biological plant protection products in Ukraine for a long time is at a very low level and tends to further decrease. To intensify the transition to environmentally friendly methods of plant protection, the development of domestic production of biological plant protection products, as well as the process of greening agriculture, they propose strategic approaches to the formation and development of a common system of environmentally friendly methods of plant protection on the new technological and organizational basis.

ISLAMIC FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA: A BOUNDS TESTING APPROACH

Using a bounds testing approach to the cointegration and error correction method developed within the autoregressive distributed lag (ARDL) framework, this paper analyses the short- and long-run dynamic relationships between Islamic financial development and economic growth in Nigeria. Quarterly time-series data (2012:1 to 2019:3) are employed for the variables, together with non-interest bank financing to the private sector and real gross domestic product as indicators of Islamic financial development and economic growth respectively. The results indicate a significant short- and long-run relationship between Islamic financial development and economic growth. The relationship, however, is neither Schumpeter’s supply-leading nor Robinson’s demand-following type; rather, it appears to be bi-directional. In addition, empirical evidence is found that underscores the important role of Islamic bank financing in the economic performance of Nigeria. The paper recommends that improvement of the Islamic financial system in Nigeria may foster economic development and enhance welfare and poverty alleviation in the long run.

Assessing Alternative Investment Policies in a Resource-Rich Capital-Scarce Country: Results from a DSGE analysis for Iran

This study mainly aims to assess the impact of an oil revenue shock on Iran's macroeconomic variables using a New Keynesian DSGE model as well as considering some main resource-rich developing countries characteristics such as capital scarcity, government's dominance in the economy, and public investment inefficiencies features. Here, the macroeconomic outcomes of implementing an alternative fiscal rule, namely, modified Bird-in-Hand (MBIH), in which both the development of infrastructures and future generations needs are taken into account are investigated and compared with the fiscal rule of the base scenario. The results are considered in four directions: First, an oil revenue increase shock causes the macroeconomic variables to rise in both scenarios, but the variables private-sector production, consumption, total investment, and non-oil GDP have a more increase under the MBIH scenario. Second, oil revenue accumulation in the oil fund under the MBIH scenario is significantly more than that in the base scenario. Third, government budget deficit experiences a higher increase, and public sector production experiences a less rise under the MBIH scenario. Fourth, the sensitivity analysis of public investment inefficiency shows that this factor acts as a serious barrier to the realization of the government's investment goals. Therefore, performing the first-best (MBIH) fiscal rule entails the reduction of the government's budget dependency on oil revenues through expanding the tax base, improving the public investment efficiency, and shrinking the public sector.

The relationship between foreign direct investment and economic growth: A multivariate causality approach from Namibia

AbstractThe paper empirically investigates the short and long‐run causal relationship between foreign direct investments, credit to the private sector, trade openness, gross national expenditure and economic growth in Namibia. In doing this, the paper employs multivariate Granger‐causality within an Auto‐regression distributed lag‐bounds approach to co‐integration and unrestricted error correction model. The paper finds a strong bi‐directional causal relationship between FDI inflow and economic growth both in the short and the long run. Suggesting that FDI inflow spurs economic growth and economic growth promotes FDI inflow and also, FDI inflow, credit to the private international trade and national expenditure spur economic growth both in the short and the long runs in Namibia. The policy implication therefore is to provide incentives for private sector innovation and production away from the export and import sector.

Estimation of Demand for Major Crops in Egypt Using Almost Ideal Demand Model

Promoting exports development and reduction of imports are top priorities on Egypt's economic development agenda as tools to reduce the sharp deficit in the balance of trade, to which wheat and corn imports are main contributors due to the fact that domestic production fails to meet national consumption from both crops. Such imports pose a heavy burden on Egypt’s Balance of Payments, where imports from the two crops reached US$ 2.65 and 1.74 billion, respectively, representing 20.37% and 13.38% of the total value of food imports during 2017, estimated at US$ 13 billion. The Government also devotes great attention to boosting rice and potato exports to accelerate development in the context of global changes leading to increased competition among nations to acquire the largest share of markets, which depends not only on domestic production but also on the competitive advantage of the exported commodity. Needless to say, competitive advantage is the outcome of interaction between a combination of several factors such as growth, economic stability, private sector development, education, training, productivity, efficiency and degree of integration with the global economy.

Optimal Size of the Public Sector in Poland in Terms of Employment

The paper contributes to the literature on the public sector optimal size. The most common approach to measure the optimal size of the public sector is based on government expenditures. The authors propose a broader approach to public sector size measurement and define it by the share in the gross value of fixed assets and the share in employment. The approach is based on the stocks of accumulated capital and labour. Contrary to most of the literature, it gives a clear answer on the optimal employment share in the public sector that leads to maximizing gross domestic product per capita. The authors use Poland as an interesting case study. Public sector size in Poland evolved during 2002–2014, thus at some point it may have achieved the optimal size. The authors analyse the effects of changes in the public sector size on gross domestic product per capita. The authors find that: (a) agricultural sector seriously lowers private sector productivity; (b) the optimal share of the public sector employment in Poland is 20%, and 24% excluding agriculture; (c) the actual share of the public sector in employment in 2014 was one percentage point larger than that which would maximize gross domestic product per capita; (d) there is significant inefficiency in the production process in Poland that can be explained by suboptimal public sector share.