Sector Productivity Research Articles

Asset prices in a production network

The relative importance of sectoral and aggregate productivity shocks in asset pricing is examined using a nonlinear dynamic equilibrium model where heterogeneous sectors interact in a production network. The model accounts for the heterogeneity in sectoral stock returns and endogenously generates conditional heteroskedasticity and fat tails. The equity risk premium is shown to be driven by sectoral shocks – specially to investment good producers and mining – with a limited contribution from the aggregate shock. SMM estimates of the elasticities of substitution between material inputs and between investment goods support the assumption of gross complementarity employed by previous network literature.

The Effects of Oil Price on Energy Production and the Ecuadorian Economy

Through an empirical analysis of the impact of variations in the international price of oil on the economic production of different strategic sectors and on energy production from various sources in Ecuador, the study seeks to show evidence on the economic effects of the price of oil. in a Latin American economy strongly linked to oil production. For this, relevant data were collected on production in different economic sectors, on the type of ownership in oil production and on energy production in various energy sources in Ecuador and statistical analyzes were carried out to evaluate the relationships between these and the international oil price. The results indicate that the effect of the oil price varies between the economic sectors of Ecuador. Some sectors, such as financial services and construction, show positive responses, while others, such as agriculture and fishing, appear less affected. The oil and mining sector in Ecuador is strongly linked to variations in the price of oil. The positive and significant response of the Oil and Mines GDP underlines the sensitivity of this sector to changes in international prices. Furthermore, energy production in Ecuador exhibits heterogeneous responses to variations in the price of oil. Forms of energy such as wind, solar, and thermal energy show positive and significant responses, while hydropower presents a negative response in some periods. Positive responses in forms of energy such as wind, solar, and thermal may indicate that the increase in the price of oil positively influences investment decisions in these energy sources. The study provides a significant contribution to the field of energy economics in oil-exporting countries and, particularly, in developing countries, as well as highlights the importance of energy diversification for these types of economies.

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).

The Nexus between Infrastructure Development and Agricultural Growth In Nigeria

The study examined the impact of infrastructure development on agricultural growth in Nigeria during the period 1990-2022. Key variables examined include public capital expenditure on economic services (PCEES), employment in agriculture (EMPA), research and development (RD), domestic credit to the private sector (DCPS), and agricultural output. Statistical analysis using the Ordinary Least Square (OLS) technique was employed, along with the Augmented Dickey-Fuller (ADF) unit root test to ensure the stationarity of the time series data, and the Johansen cointegration test to assess the long-run relationship between the dependent and independent variables. Our results show that all variables, except research and development, were stationary at first difference. The Johansen cointegration test conclusively demonstrated the existence of a long-run relationship in two cointegrating equations. Furthermore, the results from the Ordinary Least Squares (OLS) technique reveal that public capital expenditure on economic services, domestic credit to private sectors, and research and development were found to have a positive correlation with agricultural output in Nigeria. Conversely, employment in agriculture (EMA) was identified as having a negative effect on agricultural output in the country. The study recommends increasing investment in public capital expenditures on economic services. Moreover, establishing research institutes focused on agriculture in each state can provide valuable insights and solutions to boost the sector's productivity.

The impacts of technological change policies on water uses and virtual water trade in water-constrained settings

Virtual water trade, which underlines the importance of inter-regional commodity transactions for enhancing water management, has often been recommended as an alternative to technological advancements in addressing water scarcity and increasing water savings in dry regions. Sectoral adjustment policies that focus on enhancing the productivity of specific sectors therefore should prioritize sectors with high growth impact potential but low virtual water demand. However, the diverse understanding of the concept and differing assessment techniques employed by various research communities complicate the debates surrounding the policy relevance of the virtual water trade. This study proposes a novel and integrated approach to evaluating virtual water content and flows endogenously, leveraging the advantages of Input-Output and Computable General Equilibrium (CGE) modeling methods. The quantification of the method is exemplified in the case of Uzbekistan (Central Asia), where water is a limited yet essential resource for sustainable economy and environmental systems. Specifically, this study examines the impacts of changes in economy-wide and sector-specific Total Factor Productivity (TFP) and water productivity on water uses, virtual water flows, and economic outcomes. The findings reveal that TFP improvements in livestock and fodder crop production and water productivity enhancements in gardening are recommendable options to constrain the net virtual water trade and enhance economic growth in Uzbekistan. The study also shows a high sensitivity of virtual water flows to technological changes, highlighting the importance of considering options for improving productivity when analyzing the potential of virtual water trade.

The Efficacy of Developments in Agriculture and Industry Sectors on Economic Growth in Turkey: ARDL Approach

One of the oldest economic goals of societies around the world is to increase the welfare level of the society. For this reason, the phenomenon of economic growth has been one of the most studied subjects since history. In this work, the efficacy of production in Turkey's agricultural and industrial sectors on economic growth amongst 1980 and 2022 has been investigated. In addition, inflation and trade deficit data are included as control variables. ARDL bounds test was implemented in the work. Accordingly the outcomes of the work, in the first model, when the share of the agricultural sector in GNP increases by 1%, per capita income decreases by approximately 1.13%. A 1% increment in the inflation rate diminishes per capita income by approximately 0.18%. In the second model, the margin of the industrial sector in GNP has an affirmative efficacy on per capita income. The inflation rate, conversely, has a negatory efficacy on per capita income. When the share of the industrial sector increases by 1%, per capita income increases by approximately 4.5%. A 1% increment in the inflation rate diminishes per capita income by approximately 0.5%. The parameters related to international trade deficit are statistically insignificant.

Information and Communication Technologies (ICT) and Economic Growth in Latin America: An Empirical Analysis for the 2000-2020 Period

Introduction ICTs (Information and Communication Technologies) play a crucial role in improving efficiency and productivity in various economic sectors. The research focuses on measuring the impact of ICTs on the economic growth of Latin American nations during the period 2000-2020. Methods A fixed effects, panel data model covering 17 countries in the region has been applied using ordinary least squares methodology. The variables selected for the empirical exercise are: the number of individuals using the Internet, fixed and mobile telephone subscriptions, trade balance, domestic credit, foreign direct investment and gross domestic product per capita. Results The study’s findings show that ICTs have a positive impact on economic growth. That is, for every percentage point increase in the percentage of the population using the Internet, GDP per capita increases by US$16.82. Conclusion This highlights the unique influence exerted by digital connectivity in shaping the regional economic landscape. At the same time, mobile and fixed telephone subscriptions are not significant variables in the model.

Labor Market Reflections Of Covıd-19 Pandemic: A Global Investigation Specific To Income Groups And Vulnerable Workers

The Covid 19 pandemic, which started in Wuhan, China in November 2019 and then spread rapidly all over the world, caused the death of millions of people, stagnation in the global economy, and created a rare economic conjuncture by creating both demand and supply shocks. The pandemic has affected world economies and deeply affected the labor markets on a global scale. Production in many sectors has decreased significantly, and in some sectors it has come to a standstill. As a result, unemployment rates and employment losses have increased and employment patterns have changed. Main objective of this study is to investigate the effects of the pandemic on labour markets around the world in terms of both income groups and vulnerable labour based on the extensive literature and ILO&IMF database. According to the findings, the macroeconomic structures of the countries have differentiated their levels of being affected by the crisis, while unemployment and employment losses were felt sharply in middle and low-income countries. Moreover, impacts of the pandemic on disadvantaged groups have been harsh, women, youth, migrant and child labor have been affected in different ways by the pandemic. Due to the pandemic, women had difficulty in staying in the labor market, young people were left out of the labor market and NEET rates increased, migrant workers also experienced significant employment losses, the pandemic has also increased child labor globally.

Impact of a free trade agreement on unemployment and productivity growth in Nigeria

This research investigates the impact of a free trade agreement on unemployment and productivity growth in Nigeria over the period 1981–2019. Data was collected from the World Bank Development Indicators (WDI) online database as of 2020. The study employed various analytical methods, including unit root tests, autoregressive distributed lag (ARDL) bound tests, error correction models (ECM), and cumulative sum (CUSUM) and cumulative sum of squares (CUSUMSQ) tests to assess data stability. The ARDL bound test statistics (F-statistics) of 4.26914 and 7.680624 exceeded the critical values for both I(0) and I(1) bounds, indicating a meaningful relationship between the variables. In the long run, physical capital, human capital development, and economic growth were found to have a negative impact on unemployment, with statistical significance. Additionally, sectoral productivity growth negatively influenced aggregate productivity growth. The error correction model (ECM) indicated a weak speed of adjustment, suggesting that the disequilibrium takes around 13% of the time to return to equilibrium annually. Based on these findings, the study recommends the implementation of safeguards to protect vulnerable industries, particularly in manufacturing and agriculture. Additionally, the government should focus on fostering human capital development by ensuring the availability of suitable support measures.

Analysis of The Influence of Information Availability, Economic Factors and Changing Trends on Travel Agent Business Sustainability in Digital Era

The goal of this study is to identify key factors in travel agent management and then differentiate their impact on the value creation of these companies. Researchers group methodologies for analyzing value creation in travel agencies into several main categories. The methods are interview and economic-financial analysis. Then we identify value creation indicators to determine economic value-added options, then we conduct empirical contrast. The research results reveal that travel agents, acting as intermediaries, have become highly relevant, absorbing nearly all industries of this sector's production. The historical analysis concludes that travel agents underwent a positive evolution in value creation during the studied period. The revolution in information technology, which increased staff productivity, and the process of sector concentration and association, which increased rotation, are the main factors driving this evolution. Investments in financial assets, tangible assets, and intangible assets also play an important role in transforming the sector's productive structure. While the evolution of margins plays a less significant role in value creation, the sector faces challenges due to price wars and strong competition. The positive impact of the sector's debt also increased, contributing to a significant increase in economic value-added. Finally, travel agents need to pay attention to these factors in their management in order to remain competitive and achieve their ultimate goal of creating value in this sector.

Regimes of global and national oil palm cultivations from 2001 to 2018

Oil palm is the dominant global oil crop due to its high productivity and diversified usage in many sectors. Since the late 20th century, oil palm cultivations proliferated in Southeast Asia, West Africa, and Latin America. However, global market factors, different national and regional policies, and smallholder versus commercial planting regimes in different areas lead to significant differences in economic benefits and environmental problems from deforestation and loss of biodiversity. We investigated changes in global and national distributions against suitability and indices of tree age distribution change for industrial oil palm (IOP) and smallholder oil palm (SOP). Spatial and temporal change analyses show that: i) For most tree ages, the proportion of global oil palm planting in suitable areas was less than 50%, but the impact of temporal regimes, from possible market factors and local policies, on planting structure should not be neglected; ii) Central America, South America, and West Africa were less suitable for oil palm cultivation compared to Southeast Asia. While, as two dominant oil palm planting countries, Indonesia and Malaysia had relatively low planting suitability, with 39.23% of Indonesia’s IOP, 44.85% of Indonesia’s SOP, 30.90% of Malaysia’s IOP and 18.77% of Malaysia’s SOP in highly and most suitable intervals; iii) There exist clear differences between IOP and SOP in terms of suitability, planting structure and spatial expansion patterns; iv) Hysteresis effect exists between latecomers (countries in West Africa and Latin America) and forerunner (Indonesia and Malaysia) in terms of spatial expansion; v) The spatial expansion patterns of oil palm planting centers have obvious scale effects for both IOP and SOP, with clear inter-country and intra-country differences. This paper reinterprets the global distribution of tree age and spatial expansion pattern and recommends scientific strategies to guide site selection and planting structure that enable oil palm cultivation for sustainable development.

Accounting for water quality—A framework for agricultural water use

Driven by increasing water demand, scarcity concerns, and climate change impacts, numerous countries prioritize solutions for enhanced water use efficiency. However, these solutions often focus primarily on managing water quantities to improve water productivity in agriculture, urban, and industrial sectors. Effective and sustainable water use, however, requires monitoring and management of both water quantity and quality. Traditionally, water quantity and water quality have been managed separately, often by different government agencies with different missions and limited interaction. Ensuring sufficient water quantity for agriculture and food production often takes precedence over managing water quality. Water accounting, as a tool for allocating and managing water quantity is now widely accepted and numerous examples of successful implementation exist worldwide. However, the concept of incorporating water quality into water accounting has not yet been widely promoted. Measuring both quantity and quality in the same water bodies is a fundamental principle of assessment of impacts on water quality through the determination of loads. The load is the amount of a given substance or pollutant for a given period of time. Using the key steps necessary for the development of a water quality monitoring and assessment programme, a framework has been developed that can be applied to water accounting projects using typical water accounting applications. Two examples of potential applications are used to consider the technical, institutional, and financial requirements. Implementing a framework for incorporating water quality monitoring and assessment into water accounting should contribute substantially to the need for more water quality data at global scale. Such data are required to facilitate achievement of Sustainable Development Goal 6 “Ensure availability and sustainable management of water and sanitation for all” through more efficient water resources management and greater awareness of water quality impacts in the agricultural water use sector.

Impacts of gender inequality on international trade and innovation

Analyses of the recent ASEAN dataset indicate that gender inequality may reduce FDI's positive effects on international trade. Gender inequality negatively affects innovation in which international trade plays a mediating role. Improving education and employment opportunities for women boosts the productivity and competitiveness of trade sectors, leading to innovation activities for sustainable growth.

Visual Intelligence: Machine Learning Approaches to Image Filtering and Identification

We apply powerful machine learning approaches in our work on visual intelligence to increase visual clarity and automate picture filtering. Machine learning is applied in image filtering in an attempt to automate and enhance picture quality, minimize noise, and extract vital information. Machine learning employs models and algorithms created on massive datasets to enhance filtering efficiency over prior techniques. Our strategy seeks to minimize noise, enhance picture quality, and extract useful information by integrating the Retinex algorithm with Gaussian filtering. Its purpose is to promote productivity and effectiveness in numerous sectors, including satellite analysis, medical imaging, and photography, by means of techniques like noise reduction, sharpening, and creative upgrades. This technology improves the area of visual data processing while solving concerns with computation efficiency and parameter fine-tuning. Furthermore, by tackling concerns like computer efficiency, dataset bias, and fine-tuning, it achieves substantial breakthroughs in the processing and interpretation of visual data. Our results hint to the potential uses of machine learning in numerous domains, such as satellite analysis, medical imaging, and photography, and illustrate how it may be used to enhance picture quality. We explain how visual intelligence is applied in current photo processing and analysis via our work. Keywords— Visual intelligence, image processing, blur removal, object detection, machine learning, Computer vision, Image enhancement, Retinex algorithm, Gaussian filtering, Deep learning, Neural networks, Feature extraction, Image segmentation, Anomaly detection, Data preprocessing.

Asymmetric Effects of Local and Global Business Cycle Variations on the Sectoral Industrial Production in Singapore

Abstract This paper investigates the sensitivities of Singapore’s sectoral industrial production to local and global business cycle variations using the auto-regressive distributed lag (ARDL) model in the nonlinear and asymmetric cointegration framework. By employing monthly time series data from Jan 1983 to Dec 2022 the study corroborates the commonly held view that durable industries are pro-cyclic to thelocal business cycle. However, the nature of cyclic sensitivity is different if viewed from a global perspective. Industries including pharmaceutical, computer, and motor vehicles industries flourish in both the local and global business cycle booms. Almost all industries having long-run linkages with global industrial production are also affected by global production growth in the short run. However, consistent with earlier studies for Southeast Asian countries, very few industries exhibit short-run asymmetries in their relationship with local and global business cycles. We found that incorporating long-run information also improves the forecasting ability of sectoral industrial production growth in Singapore.

Economic impact of government health expenditure: An application of the computable general equilibrium model to the Iran.

Considering the increase in health expenses and the government's role in health financing, this study investigated the economic impact of increases in the share of the health sector in the government budget while taxes remain unchanged and government spending is fixed. The economic model used in this study was a macroeconomic Computable General Equilibrium (CGE) model. This model was calibrated using a 2011 Social Accounting Matrix (SAM) Of Iran. The CGE model was solved with non-linear programming using the General Algebraic Modeling System package, version 2.50. The effect of this simulation on the government budget deficit, the production of different sectors of the economy, and the employment rate was investigated. Based on our fundings the elasticity of substitution in the agricultural and industrial sectors is higher than in the health and service sector. Also, the biggest decrease in production occurred in the industry, agriculture, and service sectors, respectively. With the doubling of the share of government spending in the health sector, the employment rate of this sector has increased by 40.9%, but the highest decrease in the ignition rate is related to the service sectors (-2.7%), agriculture (-0.23%), and industry (-0.14%). Increasing the share of government spending in the health sector in comparison with other sectors of the economy, provided that government spending is maintained in general, leads to a decrease in production and economic welfare. It seems that the Iranian government should seek to increase the sources of health financing and the share of government expenditures in the health sector with other ways in order to improve the health level of the society and have a positive effect on other economic sectors.

Sectoral Heterogeneity in Nominal Price Rigidity and the Origin of Aggregate Fluctuations

We study the role of heterogeneity in nominal price rigidity for aggregate fluctuations in a model with sectoral productivity shocks. Theoretically, sectoral heterogeneity in the pricing friction has an ambiguous effect on GDP and aggregate price volatility. Quantitatively, (i) GDP volatility is amplified when the friction is heterogeneous rather than homogeneous; (ii) sectoral shocks can jointly rationalize the volatility of sectoral prices, aggregate prices, and GDP, unlike aggregate shocks; and (iii) shocks to the largest or most central sectors may not matter in the aggregate as heterogeneous pricing frictions may alter the identity of the most important sectors for aggregate fluctuations. (JEL E12, E23, E31, E32)

Fueling Progress: How Innovation is Driving Growth in Russia's Oil and Gas Industry By IJISRT

There has always been a linkage between the technological innovation of the country and its industrial development. . In the current paper, technological innovation in oil and gas companies has been considered research and development, patents applications and information and communication technology (ICT). Moreover, the oil and gas sector development has been measured in the form of oil and gas sector production and oil and gas sector export.

Review of Research on the Impact of Changes Resulting from the Hard Coal Mining Sector in Poland on the GDP Value

Energy transition is one of the main objectives of the European Union. Significant changes will mainly affect countries in which significant modifications will have to be made to their energy sources. The process will involve high investment in infrastructure and additional costs of the transformation, such as reduced production (which may affect the GDP value) in the economic sectors involved in the process. The aim of this article is to provide the energy transition community, namely the national economy in general and those involved in planning for structural change in particular, with the key lessons and challenges in researching the impact of production changes in the mining sector. This article also shows the relevance of the mining sector in the economy. Within this area, particular attention is given to the following issues: the impact of economic sectors on the country’s GDP (gross domestic product); the identification of key sectors of the economy using the input–output method; the contribution of coal mining and the mining industry to Poland’s GDP; an analysis of changes in the structure of Poland’s economy using the input–output method; and the use of the input–output method in the context of changing/reducing the supply of economic sectors.

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.