Sectoral Growth Rates Research Articles

The welfare implications of public healthcare financing: a macro-micro simulation analysis of Uganda.

Studies on global health and development suggest that there is a strong correlation between the burden of disease and a country's level of income. Poorer countries tend to suffer more deaths from preventable causes such as communicable, maternal, perinatal and nutritional conditions, compared with high-income countries. In low-income countries, the government health expenditure share in the general government budget is low and out-of-pocket payments for healthcare relatively high. They also rely heavily on external resources for health funding, yet sustainability of external resource flows is not guaranteed. This article explores increasing public healthcare funding from domestic resources mobilization, and evaluates the impact of measures to achieve this on sectoral growth and poverty reduction rates in Uganda using a dynamic computable general equilibrium model. This article shows that increasing the government health budget share, facilitates expanded healthcare services, improved population health, higher sectoral growth and reduced poverty. The agricultural sector is predicted to post the highest growth when compared with services and industry sectors under both domestic taxation and aid funding scenarios, while national poverty is predicted to decline from 31 to 12% of the population by 2020. This article demonstrates that the most effective measure is to frontload investment in healthcare and generate additional domestic funding for health from a household tax earmarked for health.

Trade Liberalization and Firm Level Productivity in Indian Cement Industry:Evidences from Post-Reform Period

Productivity growth has an important linkage with economic growth and standard of living. It increases output and also improves the efficiency of firms/industries through better utilization of factors of production. This study estimates firm level productivity in cement industry in India and examines the impact of trade liberalization. The period of the study is from 1991-1992 to 2012-2013 which is sub-divided into two sub-periods, i.e., from 1991-1992 to 2001-2002 and from 2002-2003 to 2012-2013. Productivity has been estimated using Levinshon-Petrin (gross revenue case) method. The firm levels productivity growth (semi-log trend rate of growth) in cement industry in balanced and unbalanced panels are negative 0.14 per cent and negative 0.01 per cent respectively. A significant difference in productivity growth among large, medium and small scale firms is found. Trade liberalization has led to decline in input-tariffs, output-tariffs and effective rate of protection. Increase in trade openness led to increased productivity. The study shows positive impact of increase in construction sector growth rate and decline in rate of interest and inflation rate on firm level productivity in this industry.

Dynamic intersectoral models with power-law memory

Intersectoral dynamic models with power-law memory are proposed. The equations of open and closed intersectoral models, in which the memory effects are described by the Caputo derivatives of non-integer orders, are derived. We suggest solutions of these equations, which have the form of linear combinations of the Mittag-Leffler functions and which are characterized by different effective growth rates. Examples of intersectoral dynamics with power-law memory are suggested for two sectoral cases. We formulate two principles of intersectoral dynamics with memory: the principle of changing of technological growth rates and the principle of domination change. It has been shown that in the input–output economic dynamics the effects of fading memory can change the economic growth rate and dominant behavior of economic sectors.

Manufacturing as an engine of growth: Which is the best fuel?

Recent contributions of the development economics literature question the role of the manufacturing sector as an engine of growth. The experience of countries like India, which is investing in the services sector, and failures of industrialization in Africa and Latin America have led to scepticism about the effectiveness of manufacturing to foster development. The contribution of this paper is twofold. First, with the use of GMM techniques to treat the endogeneity bias and a sample of 80 countries for the period 1980–2010, the paper provides new evidence supporting the role of the manufacturing sector as an engine of growth. Second, the paper investigates which fuel is best for the engine. By applying a LMDI (Log Mean Divisia Index) technique, we decompose the manufacturing sector's growth rate into components of structural transformation and employment scale. Whereas structural transformation refers to an increase of manufacturing value added based on drivers that strengthen manufacturing industries (in terms of manufacturing productivity and manufacturing labour share), the employment scale component refers to an increase of manufacturing value added based on a driver (total employment) that does not promote a transition in which the manufacturing sector assumes a leading role. We find that structural transformation rather than employment scale effects enhances economic growth and that not every dollar for additional industrialization matters for development.

Estimating the Relative Benefits of Agricultural Growth on the Distribution of Expenditures

Does the sectoral composition of aggregate economic growth affect poverty? We ask whether agricultural growth in developing countries increases the expenditures of poorer households more than growth in other sectors. While some reduced form analyses have tackled this question using either country-level time series data, regional panel data for one country, or cross-sectional country data, this paper is unusual in using panel data for many countries. We improve on much of the existing literature by devising an instrumental variables strategy to correct for the endogeneity of sectoral GDP growth, involving averaging over sectoral income growth rates for neighboring countries. Our principal finding from our instrumental variable estimator is that the estimated elasticities associated with growth in agricultural income are significantly greater than for non-agricultural income for all but the extreme top and bottom deciles. In the middle range of the income distribution the effect of a given GDP growth due to agriculture is 3–4 times larger than if it was due to non-agricultural activities. Having established that on average growth in GDP originating in agriculture is more beneficial for poorer deciles, we finally explore whether this is a pattern which holds across different groupings of countries. A second important finding is that there is heterogeneity across some groupings. Most particularly, we find that it is the poorest people in the poorest countries for whom agricultural income growth is the most beneficial.

Structural Transformation of Economy in Special Region OF Yogyakarta

The first aim of this study was to determine the relationship between the growth rate of GRDP and the growth rate of sectors’ labor absorption in Special Region of Yogyakarta. The second objective was using the Esteban Marquillas’ Shift-Share analysis to prove whether there has been a structural transformation of the economy in Special Region of Yogyakarta during 2009-2014. The third aim was to determine the impact of economic sectors’ growth in Indonesia on the growth of aggregate GRDP in Special Region of Yogyakarta. Results of this study were: (1) There were three conditions used to observe the relationship between the growth rate of GRDP and the growth rate of labor absorption in Special Region of Yogyakarta namely anomalous; regressive; and progressive. (2) The use of Esteban Marquillas’ Shift-Share analysis showed that in the area of Special Region of Yogyakarta there had been a shift in the economic structure from the primary sector to the secondary and tertiary sectors. (3) The economic sectors’ growth in Indonesia could lead to the growth of aggregate GRDP in Special Region of Yogyakarta as much as 539.53 billion IDR. Suggestions offered by this research are as follows: (1) policy making by the government related to development has to pay attention to the relationship between economic growth and unemployment rate. (2) Government has to address the economic transformation from primary to tertiary sectors; especially for development planning; and (3) government needs to focus on economic development for the dominant sectors of economy in DIY province.

Productivity growth and labor reallocation: Latin America versus East Asia

Over the period 1963 to 2010, Latin American countries exhibit much slower de-agriculturalization than East Asian countries. The manufacturing employment share has been almost stagnant in Latin America, but exhibits a hump-shaped pattern in Korea and Taiwan. Both groups have moved increasingly toward service-based economies. A nine-sector general equilibrium model, treating sectoral productivity growth rates as exogenous, accounts for some of the differing sectoral allocations of employment in Latin America and East Asia over the sample period. I perform a series of experiments, replacing the sectoral labor productivity growth rates in each sector for each Latin American country with the corresponding growth rates in Korea and Taiwan. Low aggregate productivity growth in Latin America is an economy-wide phenomenon concerning all sectors; however, the findings highlight the possible importance of raising productivity in manufacturing and wholesale to have significant increases in aggregate productivity growth rates. I focus attention on the importance of the level of disaggregation in examining the relationship between labor productivity growth and sectoral movement of labor. Some evidence is presented in linking sectoral policies to productivity growth in Latin America and East Asia.

Linear growth rate and sectorial growth dynamics of diamond crystals grown by the temperature-gradient techniques (Fe–Ni–C system)

The paper reports data on the linear growth rates of synthetic diamond single crystals grown at high P–T parameters by the temperature-gradient technique in the Fe–Ni–C system. Techniques of stepwise temperature changes and generation of growth microzoning were applied to evaluate the growth rates of various octahedral and cubic growth sectors and variations in these rates with growth time. The maximum linear growth rates of the order of 100–300 µm/h were detected at the initial activation of crystal growth, after which the growth rates nonlinearly decreased throughout the whole growth time to 5–20 µm/h. The fact that the linear growth rates can broadly vary indicates that the inner structure and growth dynamics of single diamond crystals grown by the temperature-gradient technique should be taken into account when applied in mineral–geochemical studies (capture of inclusions, accommodation of admixture components, changes of the defective structure, etc.).

Manufacturing as the Key Engine of Economic Growth for Middle-Income Economies

This paper revisits the role of the manufacturing sector during the middle-income stage. By exploiting a large dataset that covers internationally comparable sectoral information, we prove that the manufacturing sector is imbued with three important characteristics. First, for middle-income economies, manufacturing pulls along services, instead of the other way around. A decline in the manufacturing sector growth rate will negatively affect the growth rate of the services sector, in both the short-run and long-run meanings. Second, we show that manufacturing development not only promotes the incentives of savings, but also accelerates the pace of technological accumulation. Third, an increased share of the manufacturing sector in middle-income economies can enhance the utilization of human capital and economic institutions. Our empirical findings indicate that the manufacturing sector is still the key engine of economic growth for middle-income economies.

Estimating Potential Output in Chile: A Multivariate Filter for Mining and Non-Mining Sectors

Using a multivariate filter, we estimate potential growth rates in Chile's mining and non-mining sectors. Estimates for the mining sector incorporate information on copper prices, whereas estimates for non-mining reflect information on inflation and unemployment rates. To better understand the drivers of potential growth, we decompose estimates into capital, labor (adjusted for human-capital and hours worked), and total-factor productivity using a production-function. Our estimates of potential output in Chile suggest that an important part of the recent growth slowdown has been structural, with potential-output growth slowing to 21/2 percent in recent years, although it plausibly could be higher in the medium-term.

Продовольственное эмбарго и продовольственное импортозамещение: опыт России

Rational import substitution is a necessary element of the strategy of national food security, including effective export expansion. Russia's food embargo has helped to significantly decrease its dependence on agro-food imports, improve the balance of import-export relations, enhance their product and geographic diversification. If current trends maintain, Russia by 2020 will be able to balance the agri-food imports and exports, and then to become the net exporter of food. The embargo has also contributed to maintaining high growth rates in advanced sectors of agriculture and food industries. The embargo has also contributed to maintaining high growth in advanced sectors of agriculture and food industries. However, the stimulating effect of the embargo waned, calling for increased state support of agribusiness development especially in the investment-innovation sphere. Organizational-structural, and consumer-social effects of the embargo and import substitution in general are controversial. It contributed to rapid expansion of large agriholdings, strengthening of their positions and the crowding out of the production of medium and small farms and companies. Consumer and social effects of the embargo are mostly negative. It has spurred inflation of producer price and consumer price of food, significantly decreased the purchasing power of real disposable money incomes of the population. To solve these problems without government food assistance to the9poor is unlikely. In general, both positive and negative potentials of the embargo are close to exhaustion. Further development of the process of rational import substitution requires more careful consideration consideration of its organizational, structural and socio-demographic aspects in the development of long-term agricultural strategy of Russia.

Contribution of Agriculture Sector in the GDP Growth Rate of Pakistan

This study is about to be the contribution of agriculture sector in the GDP growth rate of Pakistan. The important variables of this study is major crops, live stocks, other crops which is contribute in the agriculture sector and after that study also provide the results of whole contribution of agriculture sector in the GDP growth rate of Pakistan. Most of this study is based on secondary data and study has taken 25 years past data from economic survey of Pakistan and the period is (1990-2014). For justifying their results researcher fit the regression model for this study. Our results show that there is a strong relationship in our variables agriculture sector and GDP growth rate. Research also provides the significant impact of Major crops and other crops on agriculture sector and contribution towards (GDP) Gross Domestic Product. Live-stock is also major part of agriculture and has significant contribution in agriculture sector.

Note on Sustainability Prices When Sectoral Growth Rates Differ

A dynamic Leontief-type model is considered. The sectoral growth rates differ. This note shows that the dual of the (vector) equation connecting sectoral products and sectoral consumptions is a (vector) price equation representing sustainability prices, i.e. prices assuring profits that are consistent with the cost of sectoral capital adjustments. In this economy the sectoral price levels depend on the sectoral growth rates and the sectoral profit-capital rates differ.

Distribution of Industrial Growth in Nagoya Metropolitan Area, Japan: An Exploratory Analysis Using Geographical and Technological Proximities

Yamada E. and Kawakami T. Distribution of industrial growth in Nagoya Metropolitan Area, Japan: an exploratory analysis using geographical and technological proximities, Regional Studies. This study explores the spatial pattern of industry dynamics in Japan's motor metropolis of Nagoya. Exploratory spatial data analysis methodologies that reflect aspects of both geographical and technological proximities within regional industries are proposed and applied to the long-term, sustained manufacturing and service sector growth rates. The descriptive results identify the presence of positive multilayered growth clusters, driven mainly by the automobile and associated industries. These growth clusters differ in sectoral composition and geographical scale; the larger specialized growth cluster of transportation equipment encompasses the smaller one composed of diverse manufacturing and service sectors.

Uncovering the Sources of Sectoral Employment Fluctuations

This paper explores the sources of fluctuations in sectoral employment growth rates across the Australian economy over three different periods: the pre‐terms of trade boom period; the pre‐global financial crisis (GFC) phase of the terms of trade boom; and the GFC and post‐GFC phase. We find that common cyclical fluctuations, not just sector‐specific shocks, can and do have an important effect on sectoral growth rate dispersion across the full sample. We also find that there is evidence of accelerated structural change in the latter phase of the terms of trade boom.

A Note on How and Why Growth and Unemployment Go Hand in Hand in Developing Economies

This paper develops a simple model to explain the phenomenon of persistent unemployment, even in an economy experiencing high output growth. In the model, unemployment grows at a rate identical with the growth rate of input factors and sectors. The result is primarily triggered by a pre-fixed minimum wage for unskilled workers. To corroborate our claim, we have empirically tested our model hypothesis using data for 12 developing countries and found empirical results consistent with the theory. To mitigate or reduce unemployment, history becomes crucial in deciding on the desired rate of growth in different sectors.

CAPITAL MISALLOCATION AND AGGREGATE FACTOR PRODUCTIVITY

We propose a sectoral–shift theory of aggregate factor productivity for a class of multisector economies with AK technologies and a constant production possibilities frontier. Loans are partly secured by collateral and partly based on reputation. We find that both the growth rate and total factor productivity (TFP) respond to random and persistent endogenous fluctuations in the sectoral distribution of physical capital, which, in turn, responds to reversible exogenous shifts in relative sector productivities. Endogenous debt limits on secured and unsecured loans slow down capital reallocation, preventing the equalization of risk-adjusted equity yields across sectors. Economywide factor productivity and the aggregate growth rate are both negatively correlated with the dispersion of sectoral rates of return, sectoral TFP, and sectoral growth rates. We also find highly volatile limit cycles in economies with small amounts of collateral.

Decompositions of productivity growth into sectoral effects

The paper provides some new decompositions of labour productivity growth and Total Factor Productivity (TFP) growth into sectoral effects. These new decompositions draw on the earlier work of Tang and Wang (2004). The economy wide labour productivity growth rate turns out to depend on the sectoral productivity growth rates, output price effects and changes in sectoral labour input shares. The economy wide TFP growth decomposition is similar but some extra terms due to input price inflation make their appearance in the decomposition.

ESTIMATES OF INTANGIBLE INVESTMENT BY INDUSTRY AND PRODUCTIVITY GROWTH IN JAPAN

In estimating intangible investment in Japan at the industry level, we find a high intangible investment/gross value added ratio in the information technology (IT) sector and negative growth rates in intangible capital in 13 industries over the decade from 2000. When we examine the impacts of intangible investment on total factor productivity growth, we find a significant and positive effect on total factor productivity growth in the market economy. In a revised estimation that considers intertemporal knowledge spillovers, the estimated rate of return on intangibles in the IT sector is quite high after the IT revolution. The results imply that intangible assets have been underinvested in the IT sector.

Sectoral Allocation, Risk Efficiency and the Great Moderation

This paper argues that the decline in U.S. real GDP growth volatility after the mid 1980s was an outcome of more risk efficient and more diversified sectoral allocations. Using a portfolio approach, I distinguish between the two determinants of GDP growth volatility: sectoral covariances and sectoral allocations. I use the sectoral growth and covariances to compute the growth-volatility frontier of the economy. I define the efficiency of the actual sectoral allocation as the distance of the economy from the frontier, measured in the (volatility, growth) space. There are three main findings. 1) The frontier has shifted due to a lower sectoral growth rate and a higher sectoral variance. 2) The distance of the economy from the frontier has decreased. The efficiency over the period increased by 1.4 percentage points. This increase occurred along the volatility dimension and it is interpreted as the decline in the growth volatility in the economy, if there were no changes in the sectoral covariances. This efficiency improvement is comparable to the 1.5 percentage points decline in GDP growth volatility in the data after the mid 1980s. 3) The U.S. economy became more diversified across sectors after the early 1980s, shifting away from manufacturing and agriculture towards services. The increase in the share of Finance and Insurance coupled with the doubling of the growth volatility in this sector, might have contributed to the recent increase in GDP growth volatility.