Labor Productivity Research Articles

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

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

The Structure-Conduct-Performance of Indonesian Coffee Processing Industry

Coffee industry in Indonesia in the short- and long terms has the potential to boost the country’s economy which can be seen in the form of structure, behavior, and performance. Market forces affect the market structure in an industry. The formation of the market structure affects a company’s behavior which further affects the performance of the company. The data used in this study is sourced from the Central Statistics Agency. The study measures the relationship of structure and other factors that affect the performance of the Indonesian coffee industry using a multiple regression model. Our findings show that the coffee processing industry in Indonesia has an oligopoly structure with a fairly high market barrier. The market behavior of the coffee processing industry is seen in terms of price strategy, products, and promotion. The performance of the coffee processing industry in Indonesia has an increasing trend every year. A positive trend results in good performance for the company so that it will increase the level of profit. Based on the regression results, the Minimum Cost Price which represents the performance of the Indonesian coffee processing industry is significantly influenced by the Efficiency Value. CR4 value and Labor Productivity have no real effect on the Minimum Price Cost. The pattern of the relationship between Efficiency and Labor Productivity to the Minimum Price Cost has a positive effect while CR4 has a negative effect. Keywords: structure, conduct, performance, coffee processing industry

Firm-Level Determinants of Export Performance in Kenya’s Manufacturing Sector

Purpose: This study aimed at investigating the firm-level determinants of export performance (export propensity and export intensity) in Kenya’s manufacturing sector using firm-level panel data obtained from the World Bank Enterprise Surveys for the periods 2007, 2013 and 2018. Methodology: The study adopted a quantitative non-experimental research design. The Heckman Two-Stage estimation procedure was employed to jointly establish the firm-level determinants of export propensity and export intensity in Kenya’s manufacturing sector. Findings: Based on the estimation results, firm-level total factor productivity, firm size, human capital, cost of material, electricity cost and foreign ownership had positive and significant effects on firms’ export propensity while labor productivity negatively influenced export propensity. Firm age, capital intensity and research did not have significant effects on export propensity. On the other hand, export intensity was positively influenced by firm-level total factor productivity, foreign ownership, firm size, firm age, human capital and research. Labor productivity had a negative effect on firms’ export intensity. Whereas the effect of energy cost on export intensity was weakly significant at 10 percent level of significance, there was no significant effect of cost of material on export intensity. Unique Contribution to Theory, Practice and Policy: Employing the new ‘new’ trade theory, the study tested the self-selection hypothesis by analyzing the determinants of export propensity and intensity. According to the self-selection hypothesis, one of the key positive determinants of export propensity and export intensity is firm-level total factor productivity. The study findings validated the self-selection hypothesis since the results revealed firm-level total factor productivity as a positive and significant determinant of both export propensity and export intensity for Kenya’s manufacturing firms. According to the study's conclusions, the government and enterprises must focus on policies that increase firm-level total factor productivity, firm size, human capital, and research in order to improve firms' export performance.

ASSESSING THE SUSTAINABILITY OF ADVANCED AND DEVELOPING COUNTRIES: A DIFFERENT PERSPECTIVE

Purpose – The research aim of the article is the analysis of advanced/developed and developing countries in the context of sustainable development, using invariant coordinate system in energy units, as well as the impact of structural changes in the economy affect the possibility of transition to sustainable development and creation post-industrial society. Research methodology – In order to achieve the aim were applied the method of socio-economic systems power changes analyzing in the frame of structural economic Kaldor model of GDP and the energy flows models. Finding – The advanced countries have seen a trend of “zero growth” and a decrease in useful energy production in the last 10 years. These countries have high labor productivity, technological level and diminishing potential for sustainable development. China is in the stage of “growth and development” and has great potential. Data calculated by the authors of the article correlates with the findings of the Kaldor model. Research limitation – The initial interpretation of the calculated data of France, Germany, Japan, USA, European Union and China was made. Countries have been analyzed in the period from 1990 to 2019. The data of the Central Statistical Office of EU and the World Bank were used. Practical implications – The results of the study can be used to further planning and design of transition to sustainable development for advanced and developing countries. Originality/Value – within the framework of the approach, an invariant coordinates system in energy units is proposed and the main parameters for assessing the potential of growth and sustainable development for advanced countries were formed.

Trade liberalisation and manufacturing employment in developing countries

The manufacturing sector has played an important role in the structural transformation process in the developing world by providing jobs and income opportunities. Using data from 131 developing countries from 1991 to 2020, we estimate the impact of trade liberalisation on manufacturing employment using panel fixed-effects and instrumental variable regression approaches. We find that trade liberalisation – on average – has harmed manufacturing employment in developing countries. There are considerable differences at the regional level; the impact has been most substantial in sub-Saharan African and Latin American countries. At least in these regions, trade liberalisation has contributed to deindustrialisation. Policies that improve labour productivity in manufacturing will increase the competitiveness of manufacturing firms in these countries in the face of growing trade globalisation.

Determinants of Production in the Bread and Cake Industry in Banyumas District

The industrial sector is a pertinent driving force for economic development in developing countries, including Indonesia. Therefore, the industrial sector more than other industries must be prepared to become a leading sector. One of the industrial sectors growing in the Banyumas district is the food industry, especially cakes and bread. This research aims to analyze the effect of capital, labor, and raw material on the production of the food items and identify the independent variables that influence the production the most. The population of this study is 108 bread and cake business units. The sampling technique used is Stratified Random Sampling based on the number of workers. The data analysis technique used is multiple linear regression which refers to the Cobb-Douglas production function using natural logarithms. The results show that capital, labor, and raw materials partially have a positive and significant effect on production; capital, labor, and raw materials simultaneously have a substantial impact on production; the most influential variable on production is the raw material. The research implies that the bakery industry in Banyumas Regency should use a combination of production factors such as capital, labor, and raw materials optimally to increase production. Furthermore, it is hoped that the Banyumas Regency Government and financial institutions can increase the ease of access to capital to support business development. To increase labor productivity, the government and companies can facilitate to improve their knowledge and skills. Keywords: capital, labor, raw materials, production

Special economic zone dynamics and firm performance: Evidence from an emerging economy

AbstractThe empirical literature on Special economic zones (SEZs) has shown that SEZs have become critical policy tools for advancing economic and firm performance, especially in developing economies where financial capital, human capital, technology and technical know‐how to drive these performances are in limited supply. While the importance and effects of SEZs cannot be overemphasised and are well documented, particularly in Asia, SEZs' operationalisation, structure and policy practice appear to vary, especially in Ghana and hence a need to examine SEZ effects on firm performance in Ghana. Thus, following the difference in the structure and practice of SEZs and its limited empirical evidence in African emerging economies, this present study employs analysis of variance, treatment estimation and regression models covering 328 firms between 2018 and 2021 to shed insights on how SEZ dynamics/features affect firm performance (measured with total factor productivity, labour productivity, profitability, revenue generation and value added) in Ghana. Our results suggest firms operating under SEZ dynamics have varying significant effects on firm performance. Thus, while firms registered as SEZ firms and operating in SEZ enclaves and firms registered as SEZ firms and operating outside SEZ enclaves have significant positive effects on the performance indicators of firms, firms that are not registered as SEZ firms and operating outside SEZ enclaves detracted firm performance. Clearly, firms that possess SEZ dynamics/features tend to promote performance of firms as denoted in the empirical literature and theoretical approaches to SEZ. Arguably, the tax holidays, cheaper tariffs and infrastructural benefits derived by SEZ registered firms boost their productivity, revenue and profit performance higher than non‐SEZ registered firms. These results suggest policymakers/government should reduce administrative bottlenecks of registering as SEZ firms and operating in SEZ enclaves to increase the number of SEZ firm operations to induce performance and create room for fiscal revenue.

‘Women stay behind and grow the food’: Agricultural productivity and the interstices of petty commodity production and reproductive labour in Tanzania

AbstractInspired by the work of Carmen Diana Deere, this paper examines how an analysis of the work of rural production, even when gendered, is compromised if it does not incorporate reproductive labour. The paper presents estimates of the gender yield gap in agricultural crop productivity in Tanzania, along with the statistical causes of the gender yield gap, in order to demonstrate what is and why it matters. The paper then shows that the gender yield gap cannot be understood without interrogating how the reproductive labour of unpaid care and domestic work limits the time for productive activities available to women who have day‐to‐day decision‐making managerial control over plots of land. In this light, the paper suggests a way of rethinking the basic analytical frameworks of agrarian political economy in ways that are consistent with and incorporate the theoretical insights of Carmen Diana Deere. The implications of the analysis are stark: it should not be assumed that all members of an agrarian household share an identical class location, as remains far too often the default assumption in agrarian political economy.

Dynamic and spatial approaches to assess the impact of geographical indications on rural areas

The paper explores the role of Geographical Indications (GIs) in promoting the economic development of European regions. We consider all NUTS3 regions of Italy, France, and Spain between 1993 and 2014, and 728 GIs.. Our research aims to empirically assess the impacts of GIs on labor productivity and employment, for the agricultural and industrial sectors. We rely on a dynamic panel model and considere the spatial variation of the data. The main results show that GIs generate a positive impact on employment, both in the short and the long-run. Moreover, we find that the impact of GIs is not limited to the province where they are produced, but also triggers sizable spillover effects. Our results have important policy implications for further economic research.

Improvement of the device’s design for increasing the efficiency of geophysical research using the Earth’s natural pulsed electromagnetic field method

Long-term field studies have shown the high efficiency of the geophysical method of the earth’s natural pulsed electromagnetic field (NPEMFE). It is a modern and experimentally substantiated tool for studying geodynamic processes in the geological environment. Disadvantages of the known device are the low efficiency of recording the intensity level of the NPEMFE, low productivity and high costs of manual labor when performing complex registration. The application of the proposed improvements will make it possible to increase the efficiency of registration of the intensity level of the NPEMFE with an increase in productivity and a decrease in costs and the level of manual labor. The technical result is achieved due to the mobility of the structure and the provision of the possibility of simultaneous registration of the intensity level of the NPEMFE both in the frequency band and in its spatial position.

Wellbeing and collective grievances among farmers: The case of Flanders, Belgium

Media coverage and policy at both national and EU level is increasingly paying attention to how farming populations in multiple countries in Europe are facing problems in terms of wellbeing. Similar attention is also being paid to this issue in Flanders (Belgium), although research data on this problem is lacking. The present study fills this gap by investigating what type of stressors farmers are experiencing in their daily activities. Through qualitative interviews (15) and focus group discussions (9), reaching 81 Flemish farmers, 2 categories of stressors are identified as negatively impacting on farmers wellbeing. The first category encompasses regulations and administrative burdens which are understood to be increasingly strict and complex, adding to workload and reducing the autonomy of the farmer. A second category relates to financial insecurity, including points such as anxieties as to the overall future of the farm enterprise and price volatility. These stressors and their direct impact can also be retrieved in other countries.In addition to these findings, this article will argue that these stressors are inextricably tied to perceptions by Flemish farmers about a changing socio-political climate that is understood to be increasingly anti-farming. Throughout the individual and group interviews on stress and wellbeing, a discourse emerges about a lack of societal respect towards farming in which farmers express increasingly feeling alienated from society. Hence, these individual stress factors cannot be detached from a set of collective grievances about the place of farmers as a professional group in the larger societal fabric. The point on regulations and administrative burdens is put in a framework wherein farmers indicate increasingly being misunderstood and disrespected. A specific symbol of contention in this regard are so-called ‘green regulations’ centred around biodiversity, animal welfare, climate … The issue of financial insecurity is tied to a larger moral critique wherein society supposedly no longer wishes to pay a fair price for honest labour and healthy food products.

A Framework for Economic Growth with Capital-Embodied Technical Change

Technological advance is often embodied in capital inputs, like computers, airplanes, and robots. This paper builds a framework where capital inputs advance through (i) increased automation and (ii) increased productivity. The interplay of these two innovation dimensions can produce balanced growth, satisfying the Uzawa Growth Theorem even though technological progress is capital-embodied. The framework can further address structural transformation, general-purpose technologies, the limited macroeconomic impact of computing, and declining productivity growth and labor shares. Overall, this tractable framework can help resolve puzzling tensions between micro-level observations of innovation and balanced growth while providing new perspectives on numerous macroeconomic phenomena. (JEL E22, E23, E24, E25, L16, O33, O41)

Determinants of Labor Productivity of Turkish Manufacturing Sectors: The Role of Global Value Chain Participation

Purpose: This paper investigates the determinants of labor productivity of Turkish manufacturing sectors by taking into account both the global value chain (GVC) participation and the research and development (R&D) expenditure for the period of 1995-2018. Methodology: To analyze the determinants of labor productivity in Turkish manufacturing sectors, we specify the labor productivity model and estimate this empirical model by the Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) methods. Findings: Our estimation results indicate that while simple forward GVC participation enhances the labor productivity of Turkish high-tech manufacturing sectors if they trade with developing countries, complex forward GVC participation increases productivity regardless of trading partners. For low-tech sectors, there is no significant impact of GVCs or R&D on productivity. There is no significant impact of backward GVC participation and sectoral R&D intensity on labor productivity. These significant results provide strong evidence for the importance of deeper involvement of high-tech sectors in GVCs for higher sectoral productivity. Given the strong heterogeneity in terms of sectors and trading partners, specific policies should be targeted to benefit from the productivity gains of the global value chains. Originality: This study contributes to the current studies by focusing on disaggregated measures of GVC participation indices and enlarges the empirical analysis by considering the heterogeneity in trading partners (developed and developing trading partners).

Distributional effects of the increasing heat incidence on labor productivity

This paper examines how temperature affects worker productivity beyond the usual “on average” analysis, with a particular focus on distributional impacts of the increasing heat incidence across high- and low-productivity areas. Using a recentered influence function regression approach, we estimate unconditional reduced-form effects of a location shift in the temperature distribution—consistent with climate change trends—on the labor productivity distribution across counties in the contiguous U.S. We find that labor productivity is largely insensitive to changes in the frequency of cool-to-moderate maximum daily temperatures. However, as temperatures shift above 24∘C, the effects on productivity turn increasingly negative, albeit with their magnitudes attenuating as a county’s productivity rank rises. While highly productive locations in the top 5% are not adversely impacted even by the hottest temperatures, permanently increasing the incidence of ≥36∘C temperatures just by a day lowers productivity at the bottom vigintile by a nontrivial 0.22% per year, an equivalent of 10.5 hours of work by a minimum-wage worker. As temperatures continue to rise, not only does worker productivity worsen on average, but the cross-county dispersion therein widens too. Given existing climate forecasts, we predict that future extreme temperatures would further deepen worker productivity inequality.

Problems of Income Disparity Based on the Gini Ratio in the Indonesian Economy

Income Disparity is a problem that is still being intensively discussed. This journal aims to provide more in-depth knowledge about the economic system and income disparities in Indonesia. The type of research methodology used is descriptive qualitative. The data used in the research is in the form of literature, news stories and books. The results of the discussion show that the factors causing income disparities include investment, Human Development Index (HDI), labor productivity, economic growth, natural resources, differences in demographic conditions and education levels. The impact of income disparities is extreme poverty, and also endangers social stability and economic growth. The proposed solution involves equal development, equal education levels, equal minimum wages, community empowerment and the Micro, Small and Medium Enterprises (MSME) sector.

PROCESSING CHARACTERISTICS OF VANAME SHRIMP (Litopenaeus vannamei) PEELED FROZEN RAW Peeled Tail On (PTO)

Shrimp is one of the aquaculture products that contributes greatly to the country's foreign exchange. Vaname shrimp can be used as processed products, one of which is frozen raw peeled shrimp products. The purpose of this study is to determine the characteristics of the Peeled Tail On (PTO) frozen raw peeled shrimp processing process consisting of processing process flows, quality testing, application of temperature, yield, labor productivity, application of basic feasibility, and waste management. Primary data collection is carried out by participating in the production process, observation and conducting interviews with employees. While secondary data is obtained from company archives/documentation. The processing of PTO vaname shrimp goes through 23 stages of the process starting from receiving raw materials to loading. The results of organoleptic quality tests of raw materials and sensory tests of the final product show values between 8-9. Microbiological quality tests on raw materials and products have met the standards. Chemical quality tests on raw materials have met the specified standards. The application of temperature during the process has met the processing temperature standards in the company. The yield and productivity of the workforce have met the company's standards. Sanitation and hygiene have been implemented well, as evidenced by the certificates of Sanitation Standard Operating Procedures (SSOP), Good Manufacturing Practices (GMP), and feasibility of processing. Solid waste in the form of head and skin waste is processed into flour. The resulting liquid waste is treated at the WWTP (Wastewater Treatment Plant).

The Effect of Land Area, Labor, Fertilizer Subsidyon Agricultural Production In Indonesia

The problem in this research is the increasingly depleting land area in the agricultural sector that occurred in Indonesia from 2010 to 2020, Employment in the agricultural sector has increased from 2010 to 2020, Instability of Agricultural Fertilizer Subsidies in the agricultural sector that occurred in Indonesia from 2010 to 2020, Production Agriculture for rice, potatoes, tomatoes, eggplant and chilies has increased from 2010 to 2020. The location of this research is in Indonesia. The scope of this research was carried out by focusing on discussing the influence of land area, labor, fertilizer subsidies on agricultural production in Indonesia from 1990-2020. The data analysis technique used in this research refers to the Error Correction Model (ECM) equation model by estimating short-term and long-term relationships between the variables Land Area, Labor, Fertilizer Subsidies and Agricultural Production in Indonesia from 1990-2020.

Transforming construction: The growing role of mechatronics in building our infrastructure

Mechatronics, the synergistic integration of mechanical engineering, electrical engineering, control engineering, and computer science, is progressively transforming the construction industry. This paper explores how mechatronic technologies are being applied across the construction lifecycle to enhance productivity, quality, safety, sustainability, and cost-effectiveness. Core mechatronic technologies changing construction include automated material handling systems, advanced construction robotics, sensor networks for monitoring, laser scanning for accurate modeling and control, and building information modeling (BIM) software. Mechatronics offers multifaceted benefits spanning from enhanced labor productivity and construction velocity to superior quality control, safety, and process optimization. However, realizing the immense potential of mechatronics in construction requires overcoming key challenges including high upfront costs, lack of technical skills, organizational resistance, integration difficulties, and reliability concerns. With thoughtful leadership and implementation, mechatronics promises to revolutionize construction, shifting it towards more automated, streamlined, and optimized techniques. This paper delineates the tremendous potential of mechatronics in construction regarding benefits, technologies, and challenges. The outlook is promising for intelligent mechatronic systems to profoundly enhance productivity, quality, and safety as construction progresses towards greater automation and optimization.

Administrative empowerment and its relationship to job performance in special education centres in Karak Governorate: the employee perspective

Introduction. Administrative empowerment in special education centres is of great interest because it involves changing approaches to organisational management in the system of special (correctional) education. This, in turn, impacts the success and sustainability of the activities of such centres. Aim. The present research aimed to quantify the extent to which employees in special education centres felt empowered by their supervisors and how that empowerment correlated with their job productivity. Methodology and research methods. To achieve the research objective, the authors utilised the correlational survey method and created two questionnaires. The first questionnaire examined the administrative empowerment transferred to staff members. The second questionnaire was administered to assess the employees’ job performance following the implementation of administrative empowerment. 112 employees of special education centres participated in the study voluntarily. Results. The results of the study showed a positive correlation between administrative empowerment and the growth of labour productivity in the centre. At the same time, there were differences in job performance based on variables such as gender, years of experience, academic qualifications, and attendance at training courses. Scientific novelty. The study identified key factors that can enhance job performance in special education centres to support students with special needs. Practical significance. The research findings will be of interest to academics, scholars, and educators working in the field of special education.

INNOVATIVE ANTI-CRISIS MANAGEMENT AT TRADE ENTERPRISES IN THE CONTEXT OF EUROPEAN INTEGRATION AND RISKS IN UKRAINE

The article examines the activities of commercial enterprises during the crisis caused by the war, the coronavirus, and the European integration aspirations of Ukraine as a candidate for membership in the European Union. Despite the significant number of publications on anti-crisis policy, there are still unresolved problems related to risk management in the process of ensuring the anti-crisis policy of trade enterprises in the global economic uncertainty. Most of the companies in this sector suffered collapse and bankruptcy due to the complexity of operating conditions during this difficult period: power cuts, labour migration, changes in international and domestic supply conditions, selection of new suppliers, destruction of road and warehouse infrastructure, and the search for new logistics routes. The aim of this article is to offer practical recommendations that will help retailers strengthen their resilience, adapt to the changing environment through innovative crisis management measures, and quickly recover from the crisis to reach or exceed the previous level of financial and operational stability. The research methodology involves a two-pronged approach: a qualitative study through a literature review and interviews, which gives an idea of crisis management, and quantitative methods, including surveys and analysis of financial indicators. The article examines the activities of trade enterprises in the crisis period of the pre-war years, i.e., the time of the pandemic's impact on the dynamics of trade. It analyses the losses of retailers during the war. The objectives of crisis financial management are defined. The relationship between crisis management and the solvency and financial stability of trade enterprises is determined. The impact of insolvency of trade enterprises on the payment of wages to employees is identified. The authors propose a number of anti-crisis measures for trade enterprises in the context of wartime and a global pandemic, such as transition to online trading using marketing strategies and plans, cost reduction, effective inventory management, modelling the sensitivity of financial indicators to changes in the external environment, and search for innovative opportunities. Attention is focused on the growing role of human capital in business recovery, including the importance of staff training and professional development, improvement of motivation systems and human resource management. The paper suggests ways to increase labour productivity, such as process automation and the effective use of data analytics. Results. Thus, the objective need for innovative tools for crisis management of trade enterprises becomes a key element of research in the context of European integration and wartime.