Raw Labor Research Articles

Total factor productivity gap between the “New” and “Old” Europe: an industry-level perspective

ABSTRACT The main goal of this article is to investigate the source of productivity growth for the Central and Eastern Europe (CEE) countries, at the industry level, based on the Schumpeterian creative destruction mechanisms. Our study provides valuable insights into productivity drivers for the CEE countries, which are vital for the policy makers. To measure productivity, we calculate the Total factor Productivity (TFP) measure based on the raw labour, at the industry level. There is a substantial productivity gap at the industry level between the CEE and core European countries (EU14). The result of econometric analysis suggests that the further a country lies behind the frontier, the higher is the rate of TFP growth, i.e. the convergence process.

Understanding What Informs the Choice of Agro-Processing Firm Siting: Evidence from a Developing Country

This article investigates the complexity of factors that influence the location choice for agro-processing firms from a developing country and SME perspective. It further examines the underpinning role of government policies regarding the siting, operation and effectiveness of agro-processing firms. Using a quantitative methods research design, 124 randomly sampled agro-processing firms were surveyed. The collected data was analysed using exploratory factor analysis and logistic regression analysis. It emerged that business support, economic and socio-cultural factors had a direct impact on decisions regarding the siting of agro-processing firms. Also, the availability of raw materials and cheap labour equally contributes to such decisions. Government policies turned out to be ineffective in influencing decisions on the siting of agro-processing firms. In terms of policy, there is a need to refocus efforts to incentivise agro-entrepreneurs, open up access to sustainable funding options and build the innovative capacity of agro-processing firms. This is critical to attracting agro-processing investments to remote areas such as Northern Ghana to revamp the local economy. This article highlights the impact of policy on the location of agro businesses in developing countries and also demonstrates the nexus between the location of a business and its performance.

Analisis Komponen Biaya Terhadap Pendapatan Bisnis Online Shop (Studi Kasus Pada Bisnis Online Shop Kota Surakarta)

This study aims to determine the cost components needed to generate maximum income in the online shop business from January to June 2021. In order to generate maximum income, there are certainly many factors that must be considered. The population of this study is online business people in Surakarta, totaling 65 people, the sample selection criteria are online business people who earn below 100 million rupiah per year. Data collection techniques in this study are interviews and documentation. The results of this study indicate that the cost of expeditions, raw material costs and labor costs have a positive and significant impact on online shop business income in the city of Surakarta. Simultaneous test results also prove that expedition costs, raw material costs and labor costs also have a positive and significant effect on online shop business income in the city of Surakarta.

重新理解经济发展与自由贸易-以中国稀土工业为例

Free Trade is shaped by a system of rules made by WTO and other international organizations initially dominated by the United States and other developed countries. The seemingly fair rules are based on the status quo and designed to consolidate it, in which the “trade barriers” for the developing countries to export their raw materials and cheap labor should be removed and the high added-value manufactured goods should be free to enter the domestic markets of every country. After China joined the WTO, it emerged as a game-changer by following the rules. How China escaped the “resource curse” experienced by many developing countries and became an industrialized developing country capable of competing with the developed countries on fair terms? This paper uses China’s rare earth industry and related industrial policy and law as an example to formulate a narrative in which relationship between law and development can be reconsbidered from the perspective of the developing world.

SME INTER-CLUSTERING LINKAGE OF EAST JAVA: AMONG BUSINESS STRATEGY AND COOPERATIVES

The Indonesian SME cluster has not fully implemented the cluster concept, causing the SME cluster to stagnate. The Meubel SME Cluster of Pasuruan City and Malang City are two prime clusters working to show their economic crisis performance several times. This study aims to examine the factors of inter-firm linkage and business strategy on business performance. Methodologically, this study uses several analytical methods, namely multiple linear regression, to measure the influence between inter-firm linkage and business strategy variables on business performance, SWOT matrix to map strategy, and descriptive analysis to present non-parametric findings. This study analyzed 60 samples of MSEs from a population of 350 business units. The results of the study mentioned that aspects of business strategy (finance, marketing, human resources, research, development, and operations) had a more significant effect on business performance (sales, profits, assets, labor, and productivity) than inter-firm linkage (backward, forward, and horizontal). Through SWOT matrix analysis, the inter-clustering linkage of Malang City and Pasuruan cluster SMEs is naturally created. Access to raw materials and labor in the city of Malang began to be complicated even though consumers’ potential from large tourists and access to adequate technology. In contrast, Pasuruan City is lt to do marketing because of geographical conditions’ weakness even though the raw material resources and labor are abundant. The specialization of production is created with Pasuruan City as the production base and Malang City as the Marketing Base.Keywords: Cooperatives, Business Strategy, Inter-Clustering LinkageJEL: Q13, L21, C38

The Natural Resource Boom and The Uneven Fall of The Labor Share

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares. The theory suggests that the response of factor shares to exogenous changes in commodity prices depends on the relative intensity in which factors are used in the tradable and natural resource sectors. We construct estimates of income shares accruing to raw labor, human capital, physical capital, and natural resources, and quantify the effect of the resource boom on factor shares. For identification, we use a two-way fixed effects strategy and a differential exposure design to instrument commodity prices. We find that a natural resource boom negatively impacts the total labor, human capital, and physical capital shares, while the raw labor share remains unchanged. Our estimates suggest that the natural resource boom explains nearly 25.7 percent of the global decline of the total labor share during the 2000s. We also find a redistribution effect within labor income that indicates that the fall of the labor share was unevenly distributed against human capital.

The Natural Resource Boom and the Uneven Fall of the Labor Share

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares. The theory suggests that the response of factor shares to exogenous changes in commodity prices depends on the relative intensity in which factors are used in the tradable and natural resource sectors. We construct estimates of income shares accruing to raw labor, human capital, physical capital, and natural resources, and quantify the effect of the resource boom on factor shares. For identification, we use a two-way fixed effects strategy and a differential exposure design to instrument commodity prices. We find that a natural resource boom negatively impacts the total labor, human capital, and physical capital shares, while the raw labor share remains unchanged. Our estimates suggest that the natural resource boom explains nearly 25.7 percent of the global decline of the total labor share during the 2000s. We also find a redistribution effect within labor income that indicates that the fall of the labor share was unevenly distributed against human capital.

Development of high-strength concrete with the addition of a universal superplasticizer

Automobile roads perform a particularly important, responsible function in the movement of every automobile, transport equipment. The quality of automobile roads determines the reliability of road construction and automotive equipment, the resource of their work, and, most importantly, ensuring traffic safety. However, the construction of roads and construction methods with the expiration of a certain time undergo significant changes associated with the intensive development of road transport, road construction equipment, an increase in the intensity and flow of traffic. In this regard, there is a need to build high-quality roads and cover roads with durable concrete, which can be achieved by upgrading with composite chemical additives in the composition of concrete - a modernized superplasticizer. The object of this work is a superplasticizer for producing wear-resistant concrete. The introduction of a superplasticizer into the composition of concrete makes it possible to obtain especially strong concrete with an increased service life, which in turn will significantly reduce material costs for raw materials, repair work, and labor resources. The purpose of this study is to obtain a highly effective superplasticizer and particularly durable wear-resistant concrete for road surfaces. To achieve this goal, it is necessary to solve the following tasks: prepare raw materials, develop an optimal component composition and obtain a superplasticizer; in laboratory conditions to obtain a prototype of concrete; determine the quality indicators of the resulting concrete by GOST; to conduct pilot tests for implementation in production.

Analiza faktora od uticaja na konkurentnost domaćeg meda

The aim of this paper is to determine the competitiveness of domestic honey and analyze the factors of influence, in order to create an adequate strategy for maintaining and strengthening the competitive position. The research is based on the analysis of results from the scientific-professional literature and statistical reports, calculation of economic indicators, comparative method and other general scientific methods. Porter's diamond model is used, as a basis for analyzing the competitiveness of honey. Domestic honey, as a traditional food product, is competitive. Data on honey exports and imports are a true indicator of the high competitiveness of honey. Namely, out of the total value of foreign trade in honey, almost 98 % refers to exports. The favorable competitive position of honey is primarily the result of low production costs, based on cheap raw materials and labor. In order to maintain a solid competitive position of honey, it is necessary to diversify the range, differentiate the offer, branding, quality standardization, innovative technology, education of producers, raising production efficiency, better use of comparative advantages, stimulating research and development projects, financial incentives, association of producers, etc. However, in order to survive in the international market, adequate marketing and technological strategies need to be developed and implemented.

Coconut Sugar Quality Control Analysis of Home-Industry in Central Java

Coconut sugar is a potential trade commodity, and Indonesia is one of the biggest exporters in the world. There were some problems such as the use of raw material was not optimum and some quality issues. The study aims to identify the defective product and evaluate the current process capacity at Ngudi Lestari as one of the biggest home-industry in Central Java. The method was use the Six Sigma Method through DMAIC tools. The data was used primary data from 28 times production during seven days through the observation process. The finding showed that there were nine potential critical to quality that affects sugar. The control chart showed that production in Ngudi Lestari still uncontrollable. It was indicated by the process that out of control limit was about 75%. The result of the sigma value was sufficient, which was 4.39. It had reached the average sigma level of industry in the United States. The defective products were caused by raw materials, labor, equipment, and production process. The raw material was one factor that had a significant effect on the quality of coconut sugar.

Faktor-Faktor Yang Mempengaruhi Penyerapan Tenaga Kerja Pada Industri Pengolahan Kayu di Kabupaten Langkat

This research was conducted for two months from April 2015 to June 2015 in Langkat District, known as one of the centers of the wood processing industry in North Sumatra. The object of research is entrepreneurs in wood industry companies in the study area. Based on the problems that have been formulated, the study aims to: (1) Analyze the effect of working capital variables, wood raw materials, labor costs and productivity in the wood processing industry on labor absorption in Langkat Regency. (2) Analyzing the average size of processed wood production produced by companies in Langkat Regency. (3) Analyzing the amount of the average absorption of labor per month received by the company in Langkat Regency. The study area was determined purposively with a sample size and population of 25 companies. Sampling of respondents using simple random sampling. The data used are primary data and secondary data. To examine the relationship between income and production costs the multiple linear regression analysis model is used. The results of this study indicate that the variable amount of working capital, wood raw materials, labor wages and productivity in the wood processing industry on labor absorption in Langkat District is 374 people with an average of 15 people, the average size of processed wood production produced the company in Langkat Regency is 282,429 m3. And the average absorption of labor per month received by the company in Langkat Regency is 15 people.

Financial Feasibility Analysis of Processing Tumpi on The Home Industry Scale in The Sub-District Kulisusu Utara, North Buton Utara Regency

This study aims to determine the manufacturing process and the financial feasibility of pile processing. This research was conducted in Kulisusu District, North Buton Regency. The population in this study were all business owners of pile processing. The determination of the sample is done by purposive (direct appointment) because the pedicab processing business actor only consists of two business units. Samples taken are as many as two business units consisting of all existing populations. The variables in this study are raw materials, supporting materials, labor and equipment. The results showed a 12%/yr NPV calculation in 1%/month. At a discount factor of 1% which is equal to Rp 14.546.944. BCR of 1,16 (>1), IRR of 5% (>1%) and return on investment by calculating PP for 9,92 months, BEP units/production of 288 packages and BEP for Rp 2.486. BEP analysis had reached the break-even point that was determined, namely 1. From the five criteria used, it was indicated that the pile processing in the Kulisusu sub-district was feasible to be developed.

Dynamic overcapacity modelling of early warning system for phosphorus fertilizer industry in China

In recent years, due to significant overcapacity in China’s phosphorus fertilizer industry, the pressure of industrial capacity reduction issue has been existing for a long time. The study contributes to establish a dynamic early warning system of overcapacity to provide meaningful insight for optimizing managerial policies of phosphorus fertilizer industry in China. The dynamic early warning system includes a novel and comprehensive evaluation model, and the commonly used entropy method is applied to effectively demonstrate the degree of overcapacity. Then, the GM (1,1) grey model proposed provides future production scenarios. Several useful conclusions can be obtained. First, the overcapacity of phosphorus fertilizer has been existing for a long time and is characterized by periodicity, and more obviously, overcapacity deteriorate significantly in 2011 and 2015. Second, the greater threat would be the excessive growth and low utilization rate of new capacity of production, and the higher volatility of phosphorus fertilizer price but relatively low profit for phosphorus companies. Third, the significant increase of raw material price, labor and transportation cost and financing cost will restrict the development of the overall industry in the future, and we highlight the more comprehensive policies to consider the uncertainties in the overcapacity issue in the long term.

Manajemen Produksi Home Industry Perspektif Ekonomi Islam

Home Industry Mega Sandra is a furniture business in Buntu, Kroya, Cilacap that utilizes raw materials of teak, jackfruit wood, and laban wood in making furniture. According to T. Hani Handoko management production is an optimal management efforts in the use of resources in the process of transforming raw materials and labor into various products or services. Management production is also the process of making products or providing services, creating and operating systems and structures through the people involved in them. Management production is also a very important role in the process of making furniture. The purpose of this research is to find out what management production is used by Mega Sandra's Home Industry in the perspective of Islamic economics. Based on the results of research conducted by the author, it can be concluded that the Mega Sandra home industry has run its production management process in accordance with the perspective of Islamic economics. About natural resources (raw materials), human resources (labor) in accordance with Islamic sharia.

SELISIH BIAYA PRODUKSI SEBAGAI ALAT PENGENDALIAN MANAJEMEN PT INDO PUSAKA BERAU

This study aims to analyze whether the difference that occurs in the cost of raw materials, direct labor, and factory overhead costs between the standard costs and the actual costs in PLTU LATI is a difference that is favorable or unfavorable. Data collection techniques with field research and library research. The analytical tool used is the analysis of the difference in raw material costs, the difference in direct labor costs and the difference in factory overhead costs.
 The hypothesis in this study is that the difference allegedly occurs in the cost of raw materials, direct labor costs, and factory overhead costs at PT Indo Pusaka Berau Tanjung Redeb is a favorable difference.
 The results showed that the difference in the cost of producing MWh electricity at PT Indo Pusaka Berau Tanjung Redeb in 2018, namely the difference in the price of raw material costs Rp. 548,029.80, - is favorable, the difference in quantity of raw materials is Rp. 957,216,602, - is (favorable) , the difference in direct labor costs Rp 2,602,642,084, - is (unfavorable), and the difference in factory overhead costs Rp 8,807,051,422, - is (favorable) This shows that the difference in the overall production cost budget is favorable or profitable. This beneficial difference shows that the company is really able to reduce production costs optimally in 2018.

LES ENTREPRISES FRANÇAISES FACE AUX OCCUPANTS (1940–1944)

Amid severe shortages of raw materials, labor, and transportation, companies in occupied France (1940–1944) sought alternative paths to what is commonly called “economic collaboration.” They worked to find substitute supplies, convert to new product lines, alter their manufacturing methods, and even adapt to the black market. But few businesses could avoid the question of whether to provide goods and services to the occupier. The opportunities to do so were widespread, though they varied according to occupation, economic branch, and the passage of time during the Occupation. The German occupiers thus benefited from the French economy. With decisive help from the Vichy regime, the occupiers managed to force, induce, or entice French enterprises into their war economy—be they large industries formerly mobilized for French national defense, small and medium-sized firms, or agricultural producers.

A competitive idea-based growth model

ABSTRACTIn this paper, we present a model in which endogenous growth arises in competitive markets. Knowledge is described as a factor used directly in the final goods' production. Firms demand both basic nonrival knowledge contents, which are supplied jointly and inelastically with raw labor, and further contents supplied by patent holders. This fact, together with Lindahl prices for knowledge, allows competition to work, while it also implies that workers' income share declines overtime. In a first version of the model with constant cost of knowledge production, the first best is attained. In a further version of the model, in which the cost of knowledge production is allowed to change over time and thus intertemporal externalities arise, in a decentralized economy a second best equilibrium occurs in the transitional period, while in the long run there is convergence to efficiency.

Female Labour Force Participation in Indonesia: Why Has it Stalled?

This paper examines and disentangles the factors that have led to the largely unchanged participation (about 51%) of women in Indonesia’s labour force in the past two decades. We use data from the National Socio-economic Survey (Susenas) and Village Potential Statistics (Podes) from 1996 to 2013 in order to conduct a cohort analysis that distinguishes the effects of time and age on female labour force participation. We find that the raw labour market participation figures, which show little change over time, mask changes that offset one another in the current population. Evidence suggests that social norms are changing to support female participation, but this is offset by the changing industrial structure. Our projections show that the government’s current policies are unlikely to allow Indonesia to reach its G20 goal of decreasing the gender gap in labour force participation by 25% between 2014 and 2025.

The effects of rising labour costs on global supply chains: the case of China’s cotton yarn industry

ABSTRACTRapid economic growth in China and India has resulted in rapidly rising labour costs in those countries. In this study a Muth-type model is used to assess the potential effects of this development on global supply chains using China’s cotton yarn industry as a case study. The model considers i) product differentiation at the yarn level; ii) imperfect competition in the markets for cotton yarn and raw cotton fibre, iii) input substitution between raw cotton fibre, labour, and capital; and iv) offsetting increases in the demand for cotton yarn caused by rising consumer income. Results suggest the effects of rising labour costs on the supply chain are modest, and easily swamped or obscured by the effects of rising income. Increases in industry market power (both oligopoly and oligopsony) have the same effect on the supply chain as increases in labour costs, raising prices to consumers of cotton yarn, and lowering prices to input suppliers, including foreign suppliers of raw cotton fibre. The combined effects of increases in labour costs and income have increased the factor shares for labour and to a lesser extent capital at the expense of raw cotton fibre.

Inequality and the future of healthcare.

To protect our masses, primary care institutes were developed in many countries, all over the globe. In the previous era, labour was valuable to produce crops and protect native countries from enemies as no substitute for raw labour was available to do these jobs. The scenario has changed after the era of automation. After the agricultural revolution, technological revolution took place. Hence, most of the manual jobs in agriculture sector and industry sector were automated. As a result, “new” type of jobs has emerged which was based, so far, on mainly of cognitive skills, e.g., learning, analysing, communication, and understanding human emotions. As the technology is advancing day by day, the role of humans as individual is becoming less and less except for some extraordinary persons or elite groups. Now the important question is, will elites and governments will go on valuing every human being even when it pays no economic dividends? Will the development of mass medicine/primary care will continue? Will governments/bureaucrats fund adequately for the protection of the health of these useless classes merely on the humanitarian ground? We assume that due to technological advancement and greater role of elite classes, the norm of shifting non-normal people to normality may not require any more, the previous practice of treatment (health for all concept) may not repeat in future and it is quite natural. Experiences from Japan highlight that society may prefer theses elites to the useless average class. The gap between the two classes regarding availing health facilities may widen further. This is because the government may focus more on the health of elites than common masses. One step further the government/ bureaucrat may try for immortality/divinity for this elite class, at any cost for maintaining supremacy over the poor masses.