Sector Productivity Research Articles

Manufacturing Exports and Employment Nexus in Nigeria

Nigeria has lower manufacturing employment than other industries for several reasons, including it share to Gross domestic product. Nigeria's manufacturing sector contributes less than 10 percent of the nation's GDP. This suggests that the sector's overall economic production is weak, which may restrict its ability to provide job opportunities to the teeming populace. This study investigates the impact of manufacturing output on employment in Nigeria. The Autoregressive Distributive Lag (ARDL) estimation technique was used to establish the long run relationship among the variables. It was revealed that long run relationship exists among the variables in the estimated model. The results of the Error Correction Mechanism (ECM) within the framework of the ARDL shows that the development of the manufacturing sector is one of the key strategies for the creation of employment opportunities in Nigeria. The study recommends; the development and diversification of the manufacturing sector as one of its top long-term policy strategies for the creation of employment for Nigerians. It also suggests that policies aimed at attracting foreign investment in this sector could positively impact on employment generation. This can be accomplished by providing incentives to the operators of the manufacturing sector, such as import waivers on essential imported inputs, providing and guaranteeing large commercial trading businesses to enter the manufacturing of their products through licensing, facilitating and acting as surety in franchise agreements with foreign manufacturers, and any other incentive to help lower the manufacturing sector's cost of production. Hence, the government must prioritize the development of the manufacturing sector by providing necessary support and incentives to attract more investors and increase local production, which will lead to job creation and economic growth for Nigerians.

JOINT VENTURE, TECHNOLOGY TRANSFER AND THE PERFORMANCE OF NIGERIAN OIL AND GAS INDUSTRY

Purpose: The objective of this study is to examine joint venture, technology transfer on the performance of Nigeria's oil and gas sector between 1981-2021. Theoretical Framework: It is indisputable that the Nigerian oil and gas sector is not at peak performance when compared to what is obtainable from its peers in the Organization of Petroleum Exporting Countries (OPEC) (Iheukwumere, 2021; OPEC, ASB 2020). One of the factors responsible for the abysmal performance is ineffective and incoherent technology transfer management through joint venture arrangements (Odusina, 2022). Therefore, there is a need to empirically investigate the impact of joint venture arrangements on Nigeria's oil and gas sector production which lacks sufficient research. Methodology: The ex-post facto design was used where data were collected through secondary sources on the aggregate output of the joint venture companies and the total yearly output of the upstream sector of Nigeria’s oil and gas industry represented the performance of the Nigerian oil and gas sector in the period 1980 to 2021. The collected data were analyzed using the Quantile Autoregressive Distributed Lag (QARDL) approach to test for short and long-run impacts. Findings: The study revealed that there is a significant impact of joint venture arrangements on oil and gas production in both the short run and long run. Research, Practical & Social Implication: The study therefore recommends that policymakers and industry stakeholders should carefully evaluate the terms and conditions of joint ventures to ensure their alignment with the goals of maximizing oil and gas production. Originality/Value: The use of joint venture as a proxy for technology transfer in the production of oil and gas in Nigeria and use of secondary data between 1980-2021 for joint ventures is an eye-opener for further exploration of the study areas in oil and gas production management, particularly in the area of technology transfer, which lacks sufficient research.

How do foreign-owned suppliers affect economic performance? Evidence from Italian manufacturing firms

This paper examines how the presence of foreign-owned suppliers (Inward FDI in intermediate good sectors, called input IFDI) affects both the productivity and outward FDI propensity of domestic firms. Using data from Italian manufacturing firms over the period 2005–2012, we find that the degree of a firm's involvement in innovation activities is crucial. More specifically, input IFDI, on average, boosts aggregate productivity in sectors where the majority of firms are involved in innovation activities. These industry productivity gains are due to efficiency improvements within firms, as well as the reallocation of market shares towards more efficient firms. Conversely, in sectors where few firms are involved in innovation activities, input IFDI, on average, leads to productivity losses within firms, entailing larger market share reallocation towards the best performing firms. Our findings further demonstrate that in those sectors with a high degree of innovation activity, input IFDI increases domestic firms' propensity to invest abroad, whereas the opposite is true for the other sectors.

SUSTENTABILIDAD DE LAS UNIDADES PRODUCTIVAS AGRÍCOLAS EN LA CORDILLERA OCCIDENTAL DE LOS ANDES ECUATORIANOS

<p><strong>Background</strong>: In this research, the sustainability of the productive systems of the parish of El Tingo La Esperanza, Ecuador was evaluated to make a diagnosis considering 25 sustainability indicators corresponding to the social, economic and environmental dimensions.<strong> Objective</strong>: To evaluate sustainability in the different groups of agricultural production units (APU). <strong>Methodology:</strong> Structured interviews were conducted with 109 producers of the Agricultural Production Unit (APU) to determine indicators of sustainability and clustering of APU using Ward's method. Subsequently, the sustainability attributes were determined in each group to calculate the General Sustainability Index (IGS); and finally, the influence of the attributes in each APU group was analyzed using Principal Component Analysis (PCA). <strong>Results:</strong> There is a high variability among the sector's production systems, represented by 5 groups of APU. Sustainability applying 25 indicators allowed us to observe that there is weak sustainability in the sector in all dimensions, especially in the environmental dimension. The evaluation of the General Sustainability Index (GSI) shows that APU1 are sustainable and resilient, while in APU2 sustainability is affected by difficulties in the production system, APU 3, 4 and 5 have very low sustainability values; especially the APU3 which lives in critical conditions; in the same way, the PCA shows that APU3 is not associated with any sustainability attribute. <strong>Implication</strong><strong>:</strong><strong> </strong>The producers of El Tingo La Esperanza parish especially those belonging to APU 3, 4 and 5, require special attention in improving their diversity, productivity and association capacity to improve their quality of life and therefore their sustainability.<strong> </strong><strong>Conclusion</strong>: To design an effective strategy for the development of the parish, the diversity of the APU, their sustainability and critical points must be taken into account.</p>

Towards a just transition: Identifying EU regions at a socioeconomic risk of the low-carbon transition

Europe has committed to turning climate neutral by 2050 while wider stakeholders acknowledge the need for a just low carbon transition that will alleviate any negative socio-economic impacts and leave no one behind. A key first step to this direction is to identify the regions at risk. We develop a dedicated socio-economic risk indicator which makes it possible to identify the EU regions likely to be affected the most from the transition. The indicator rests on the latest definition of the IPCC, which treats risk as the combination of Hazard, Exposure and Vulnerability. In our risk index, Hazard is described as the drop in production of fossil fuel-related sectors due to the transition risk, Exposure is the respective employment share, while Vulnerability is a composite index of socioeconomic sub-indicators that further describe Sensitivity and Adaptive Capacity of the regions. We find a wide divergence across the risk profiles of EU regions. 6 % of all EU regions are found to be at high risk, while 74 % of the regions face no risk. The 15 high-risk regions are also found to experience socioeconomic challenges prior to the low-carbon transition process, thus indicating the need for dedicated supporting policy mechanisms.

The gains from changes in internal trade costs: A quantitative analysis of China

AbstractWe study how internal trade costs affect the Chinese economy. Combining regional and industry data with a multiregional multisector general equilibrium model, we quantify the magnitude of total trade costs and institutional trade costs, and the impact of their changes on aggregate, regional, and sectoral total factor productivity, gross domestic product, and welfare. Using unique data, we estimate the sectoral trade elasticity of internal trade in 16 tradable sectors. We use our calibrated model to perform a variety of counterfactual exercises. We find that the welfare gains are negative for a 5% reduction in total trade costs and for the elimination of institutional trade costs, which can be attributed to inherent inefficiencies in the economy. However, as total trade costs decrease further, the positive welfare effect significantly exceeds the impact of inefficiency. The regional and sectoral effects of changes in trade costs show that the spatial structure of the economy, input‐output linkages, and local factors together determine the heterogeneity of sectoral and regional consequences. Finally, we infer the relative changes in China's internal trade costs from 2012 to 2017, and calculate their economic effects.

Estimating the Impact of Monetary Stability and Commercial Exposure on the Agricultural Sector’s Production of Vegetable Oils in Iraq for the Period 2003-2020

This manuscript aims to estimate the impact of monetary stability and commercial exposure on the agricultural sector's production of vegetable oils in Iraq for the period 2003-2020. We assume that monetary stability and commercial exposure impact the quantity of vegetable oil production. Use descriptive analytical approach and use econometric techniques estimate the impact utilizing unit root testing with the extended Dickey-Fuller (ADF) time series test. The variables became stationary after taking their first difference. According to Johansen, co-integration was observed when co-integration was tested as the vector error correction model (VECM) was applied. There is a long-term equilibrium relationship between the independent monetary stability variable (X1), the independent trade exposure variable (X2), and the dependent variable of the quantity of vegetable oil production (Q). That is, there is a long-term equilibrium relationship that goes from (X1) and (X2) to (Q). The results indicate that there is a significant positive relationship (positive effect) between monetary stability (X1) and the agricultural production of vegetable oils (Q) in the long term. There is an inverse significant relationship (reverse effect) of commercial exposure (X2) on agricultural production of vegetable oils (Q) in the long term. The quality of the model's performance and its safety from standard problems were confirmed. The manuscript recommends that the government of Iraq get up prioritize supporting the vegetable oils sector by developing a strategy that works to increase production and includes providing financial and in-kind support and preparing infrastructure for the agricultural sector to reflect the increase in the production of vegetable oils because they are considered a cash crop and essential for achieving food security.

Is larger really better? Productivity and firm size in European electricity generation sectors

Although a conventional wisdom claims that larger firms perform better than smaller ones, the conclusions drawn by the literature are ambiguous. This study examines the effect of firm size on productivity, using a dataset on European electricity generators from 2012 to 2020. European electricity generation sectors are particularly interesting given the substantial liberalisations in the past decades and strong subsidisation of electricity generated from renewables. Next to estimating productivity of electricity generators and establishing a link between firm size and performance in this industry, the analysis allows for heterogeneity of impacts of firm size on productivity across various dimensions (e.g., regulation scheme, state ownership), as firm size may attenuate or fuel associated problems and benefits. Besides, it adds to the literature by investigating whether and how renewable subsidies impact reallocation from the technically less efficient to the more productive firms, since they often favour smaller generators in European countries that might be less productive. The overall results highlight that firm size significantly boosts firm performance. Effects, however, diminish with size. Last, renewable subsidies deteriorate allocative efficiency. Hence, renewable subsidies favouring smaller generators are at the cost of allocative efficiency.

The Effects of Structural Transformation of the Indian Economy on the Land Use Pattern

Due to high density of population the per capita availability of land in India is comparatively less than the rest of the world. As a result, issues concerning the effective and efficient use of scarce land resources are becoming increasingly important in the Indian context. Importance of agriculture in the economy has been declining in terms of the sector’s share in GDP. On the other hand, the importance of the service sector is rapidly growing. Urbanisation has also increased significantly. Given these trends, it is quite possible that the land-use pattern in India has also been changing over the years in response to the structural changes that its economy has been going through. With this possibility in mind, the paper aims to examine whether changes in sectoral composition of the economy are reflected in the country’s land use pattern also. Further, it explores if changes in the sectoral land shares have any correspondence with comparative sectoral land productivity trends. Data on Gross Value Added (GVA) and Land -Use Pattern, accessed from relevant websites of the Government of India have first been processed by computing ratios and percentage, and drawing trend lines. Further, econometric methods have been used to estimate annual compound growth rates. Results show that agriculture has been able to sustain overall growth, including an increase in food-grain production, despite stagnations in its land share. Non-agricultural sectors have been able to claim increasing shares of land from the reduction of barren, unculturable, and cultivable wastelands. But the important point to note here is that the land-share of non-agriculture has been increasing not at the expense of agriculture but from progressively bringing to use lands which were previously not under any economic use. This is a positive development in economic use of the country’s limited land resource.

INVESTMENT IN MANUFACTURING INDUSTRIES AND THEIR IMPACT ON THE FOOD SECTOR IN JORDAN

Purpose: This research aims to demonstrate the impact of manufacturing growth, exports, and the GDP deflator on the food industry. Furthermore, it examines the influence of manufacturing growth on the food industry from 1983 to 2021. Theoretical Framework: It should be highlighted that the global financial crisis, notably in the industrial sector, including the food sector, has had a negative impact on economic performance in 2021 (Central Bank, 2022). Jordan is still suffering from the economic consequences of events in neighboring nations. Design/Methodology/Approach: The methods utilized in this study include descriptive methods and statistical analysis, which allow for the examination of the parameters impacting the research issue and the description and measurement of the relationship between them. Findings: It is proven that the processing sector's production volume positively impacts the food industry by testing the hypotheses based on the research results. The GDP deflator has a positive impact on the food industry as well. Research, Practical & Social Implications: It is advised that the food sector be given serious consideration as it has a significant impact on the country's economy and that several studies and research relating the GDP deflator to various other economic sectors be presented in order to identify and contrast the most significant economic sectors. Originality/Value: The findings demonstrated that the expansion of exports in all economic sectors has a detrimental effect on the expansion of the food industry. The study also demonstrated that the impact of the GDP deflator on the food industry is favorable. It is advised that serious attention be paid to the food sector because it significantly impacts the country's economy. Research and studies that link the GDP deflator to various other economic sectors should be presented to identify and contrast the most significant economic sectors.

Effects of Climate Change on Horticulture Sector Productivity: A Review

This comprehensive analysis provides a thorough examination of the significant influence of climate change variability on the horticultural yield. The focus is specifically on recent trends and changing patterns within various major sectors of horticulture, namely Pomology, Olericulture, Floriculture, Post-Harvest, and Landscaping. The impact of rising temperatures altered precipitation patterns, and increased occurrences of extreme weather events is profoundly transforming the horticultural landscape. By delving into in-depth analyses of recent studies, this article sheds light on noteworthy changes in flowering and fruiting patterns in Pomology, as well as alterations in phenological stages in Olericulture. Furthermore, it highlights the innovative approaches in controlled-environment agriculture that have been adopted in Floriculture. The effects of climate change on post-harvest processes and the adoption of novel technologies are also explored within the context of post-harvest. Additionally, the integration of horticulture and landscape architecture is emphasized as a crucial strategy in adapting Landscaping practices to the variability brought about by climate change. The review is supported by various facts that illustrate global temperature anomalies, fruiting periods, phonological shifts, impacts on flower quality, adoption rates of post-harvest technologies, and the integration of horticulture and landscape architecture. The main objective of the review is to offer a brief understanding on the impact of climate change on horticultural productivity. Ultimately, the review highlights the urgent need to implement adaptive strategies and sustainable practices across diverse sectors of horticulture to ensure resilience in the face of ongoing climate change. This study suggests that vertical farming, climate resilient landscaping, Genomic Wide Association Studies, and Smart Breeding of crops as well as Controlled Environmental Agricultural methods might be suitable to encounter climate change.

Hydrogeochemical investigation of irrigation water in the vicinity of metallic ore deposits in Kiraz‐İzmir, Turkey: Understanding the crucial nexus between “geology and food safety”

AbstractThe increasing drought due to climate change poses a threat to issues such as safe and accessible drinking water, food safety, and protection from diseases. The provision of water supply is vital for agricultural and livestock activities, which are commonly practiced around natural ore deposits. Examining traditional “irrigation water quality” methods alone is insufficient; investigating potentially toxic metal content in the region's waters is vital, especially around metallic ore deposits. This study focused on the Kiraz district in Turkey, known for its agricultural activities, to assess the impact of geogenic water pollution on irrigation water quality and its implications for food safety and human health. Geology determines nutrient availability, water resources, and land suitability for agriculture. Conventional irrigation water quality parameters indicate groundwater suitability for irrigation in the study area, considering Na%, sodium adsorption ratio, residual sodium carbonate, permeability index, Kelly ratio, magnesium hazard, and potential salinity. However, when examining the potential toxic metal content in the region, it was determined that the values of Al ranged from 96 to 8676 ppb, Ni values ranged from 27 to 360 ppb, and Sb concentrations varied between 9 and 53 432 ppb. Utilizing geogenically contaminated water for irrigation and its indiscriminate use in livestock, dairy, and food industries can lead to foodborne illnesses (cancer, endocrine disruptors, tuberculosis, antimony spots, thyroid tumors, goiter, neurologic and cardiovascular diseases) that endanger human health. The use of low‐quality water throughout the agricultural sector and food production chain increases food safety risks.

Real exchange rates and manufacturing exports in emerging economies: the role of sectoral heterogeneity and product complexity

The empirical evidence on the relationship between the real exchange rate and export performance in emerging economies is inconclusive. In this paper, we present evidence that one reason for this inconclusiveness is the use of real exchange rate (RER) measures that do not consider the heterogeneity between economic sectors. To this end, we calculate a unique sectoral bilateral RER index (SBRER) for 12 Latin American economies, which considers the variation of producer price differentials and bilateral nominal exchange rates across 21 manufacturing sectors and 38 trade partners between 2001–2018, and to estimate the effect of SBRER movements on manufacturing exports. The regression results show that the SBRER is a significant determinant of aggregate manufacturing exports, whereas the bilateral RER is not significant. Moreover, sectoral export elasticities indicate that mainly sectors with low levels of product complexity and, to a lesser extent, those of medium complexity are affected by RER movements. These findings show that it is important to consider sectoral heterogeneity when estimating RER export elasticities from a macroeconomic perspective.

Patterns of variability in the structure of global value chains: a network analysis

AbstractGlobal Value Chains (GVCs) are a feature of the organization of production in many sectors and countries and they deeply affect international trade patterns. How far the separation of production stages—generating increasingly widespread GVCs—can go, is currently a matter of debate. The main focus of this paper is to investigate GVCs at the country-industry level by modelling them through the construction of a specific network and using network analysis tools. In particular, the aim is to propose a network-based measure of GVCs length to assess whether the structure of GVCs has stretched or shrank over time. Analyzing the evolution of these structures is important to better understand the role played by countries in the production chain, with implications also for their fragility or resilience in presence of external shocks. Our measure allows to consider differently shaped GVCs, and the results show that there are relevant differences among sectors and countries in terms of the evolution of GVCs, especially considering direct or indirect links. Overall, we find a general stability over time of GVCs, confirming the importance of the “relational approach” in GVCs. But the shifts in the geographical patterns of the connections also support the view that firms organizing this complex form of production are ready to grasp better opportunities when they appear in the global markets.

Facilitating greenhouse gas emissions reduction via photovoltaic site characterization and deployment in Jeddah, Saudi Arabia

Abstract The study shows that oil production and consumption in the various sectors accounted for over 80% of the rising GHG emissions, especially CO2. Additionally, the study examines the solar photovoltaic (PV) potential of Jeddah, Saudi Arabia, using computational modelling. The results show that the yearly average global horizontal irradiation, direct normal radiation and diffuse horizontal irradiations are 2244, 1967 and 863.3 kWh/m2, respectively. Other results are the yearly sum of monthly global tilted irradiation (GTI) and an average yearly daily sum of GTI are 2348.4 and 6.44 kWh/m2, respectively. These results show that Jeddah has huge solar PV potential.

Mechanism of fruit and vegetable canning production development based on formation of cluster structures

The article is devoted to the formation of the structure of the organizational-economic mechanism for the development of fruit and vegetable canning production in Ukraine. It is determined that the main components of the organizational-economic regulation of activity and development of fruit and vegetable canning production are: regulation of the integrity of the development of enterprises; regulation of innovation and investment activities based on equity; regulation of financial activities; creation of conditions for the implementation of operational activities; conducting practical commercial activities; providing motivating and motivational social conditions; providing information and analytical assessment of the search and control of the use of enterprise resources. The conceptual foundations for creating a new organizational structure for developing fruit and vegetable canning production in Ukraine have been formed. A definition of a new type of cluster structure in the fruit and vegetable canning production system is given. This structure is an organic unity of production, investment, innovation, financial, sales, and other activities of enterprises, united by the chain-network (technological-functional) principle into an interconnected system of functional "fields": production of raw materials, procurement, and storage processing, and marketing. The creation of integrated fruit and vegetable canning structures of the cluster type will solve the problems of industry development through the operation of the organizational and economic mechanism for the development of the industry in the cluster system. The capabilities of the cluster allow to solve the following tasks: meeting the existing and future needs of consumers in quality food products; providing canning enterprises with high-quality raw materials of domestic origin; overcoming price disparity and optimizing the distribution of profits between the links of the technological chain; combining the financial capabilities of enterprises to solve development problems; ensuring guaranteed sales of products at an adequate price for agricultural producers; updating the technical and technological base of production; increasing the economic efficiency of the cluster's production, reducing costs, more precise identification and use of reserves of economic development; dissemination of corporate culture, new methods of work organization, raising collective consciousness, motivation of creative activity; increase in labor productivity; implementation of modern quality management systems; more complete and rational use of resources; solving the problem of staffing. Keywords: agrarian sector, fruit and vegetable canning production, organizational and economic mechanism, integrated structure, clustering, cluster formations.

Catch-Up Growth and Inter-industry Productivity Spillovers: Evidence from Trade Data

Abstract Where and when does export-led growth work? This paper estimates the importance of inter-industry productivity spillovers for the export-led growth of developing countries. My empirical strategy is based on a standard quantitative trade model that features sector-level gravity in trade flows. Applying the framework to four decades of trade data, I find clear evidence of spillovers, which are larger for skill-intensive sectors. The estimates imply that patterns of sectoral specialization play a quantitatively important role in accounting for the slow convergence of labor productivity in tradable sectors. Quantitative exercises suggest that export-led growth works for poorer countries with an initial comparative advantage in manufacturing, as these countries can use foreign demand from richer countries to reallocate labor towards sectors with high spillovers.

Overcoming barriers to technology transfer: empirical evidence from the German Democratic Republic

This paper provides empirical evidence on a special case of restricted technology transfer: the German Democratic Republic (GDR) characterized by a socialist innovation system with a supply-side-oriented technology-push model encompassing intellectual property rights protection partially distinct from the one employed in most market economies. We exploit the natural experiment setting of the formerly separated regions in Germany and compare the productivity effects of knowledge generation, accumulation, and diffusion in the GDR with those of the Federal Republic of Germany (FRG) between 1970 and 1989. By applying a Cobb–Douglas production function to original primary and harmonized productivity data and manually cleaned patent data, we show that knowledge generation, accumulation and diffusion contributed to sectoral productivity in the GDR similarly compared to the FRG, despite the institutional misalignments in the socialist innovation system. We explain these findings and provide implications for present organizations with regard to incentive schemes for patenting, the support of personal creativity and education, and alternative technology transfer mechanisms in case of institutional barriers to innovation.

The Impact of Government Expenditure on Industrial Sector Productivity in Tanzania

This study examines the impact of government expenditure on industrial sector productivity in Tanzania. The analysis was based on secondary annual time series data. Using data from 1980 to 2011, the study employs the Auto Regressive Distributed Lag (ARDL) bounds testing approach cointegration to examine the existence of long-run relationships and the error correction model (ECM) for the short-run relationships. All variables involved are integrated of order one while the error correction model estimates indicate the existence of a long-run relationship between government expenditure and the industrial sector productivity. Granger causality pair-wise test was conducted in determining the relationship among the variables. Analytical results show the existence of positive causality; therefore, government expenditure has significant impact on the industrial sector productivity. From a policy point of view, the focus should be on the government to adopt fiscal policy instruments with significant impact on industrial sector productivity.

Service sector firm death and productivity in urban and rural locations

While the positive impact of firm productivity on survival is well documented, limited evidence exists on geographic variations of this relationship and on services industries. We show that in knowledge intensive services, this relationship is more strongly moderated in core urban areas compared to suburban and rural areas.