Value-added Sectors Research Articles

Breaking the CO2 Gridlock: Can Renewables Lead the Way for the OECD?

The use of low-carbon energy in power grids is essential for minimizing negative effects on the environment. Energy consumption causes environmental damage to the OECD’s economy. This study aims to investigate the effect of energy consumption, population, and GDP on CO2 emissions using panel data from 17 OECD countries over the period 2000–2023. We use regression approaches, such as partial least squares and principal components, to study the effects of GDP, urban and total population, oil and nuclear use, renewable energy, and industrialization on CO2 emissions. The regression process in this study reduces the data to a two-dimensional representation using a stochastic model and estimation techniques. The findings of this empirical investigation indicate that the United States, Canada, France, Germany, Italy, Korea, Mexico, and the United Kingdom exhibit higher levels of primary energy consumption in comparison to value-added sectors, renewable–geothermal energy, and nuclear energy. We determined the effects of CO2 emissions, GDP, and energy consumption by considering these as the most significant elements. This has made it possible to reduce CO2 emissions by focusing one’s attention and energy on the development of novel technologies, the use of renewable energy sources, and the execution of strategic plans. Attracting increasing attention are technological shifts that deliver enormous quantities of clean energy to combat climate change. Findings from this study can help environmentalists and policymakers better understand the role of structural change and energy consumption processes in the globalization process.

China’s evolving international economic engagement: China threat or a new pole in an equitable multipolar world order?

ABSTRACT Many regional and national development questions involve the interaction of external and internal evolutions and can be conceived macroeconomically in balance-of-payments terms. In this light, China’s engagement in international trade, outward and inward foreign direct investment, accumulation of reserves, development cooperation, aid and international finance initiatives are examined and related to evolving domestic and international conditions. After joining the Western-centred international economic and political order, while protecting its economic and political sovereignty and defining itself as part of the Global South, China emerged as a very large semi-peripheral upper-middle-income country. In the new millennium China and other emerging economies started to upgrade into higher value-added sectors and to reshape international governance arrangements in ways that reflect the civilisational values and colonial and semi-colonial experience of the Global South. Although these steps do challenge the unequal and unfair ‘liberal rules-based order’ and US hegemony, they also help create a more equitable and peaceful multipolar world system.

Edible, strong, and low-hygroscopic bacterial cellulose derived from biosynthesis and physical modification for food packaging.

The pervasive presence of plastic packaging has led to significant environmental contamination due to excessive reliance on petrochemicals and the inherent non-biodegradability of these materials. Bacterial cellulose (BC) films present a viable alternative for food packaging applications, owing to their environmentally friendly synthesis process, non-toxic nature, robust mechanical strength, and biodegradability. However, the high hygroscopicity of such bio-based materials has limited their widespread adoption, as it results in diminished strength and barrier properties. In this study, a novel approach for creating edible, transparent, robust, and high-barrier BC-based composite packaging was proposed through biosynthesis with the incorporation of soy protein isolate and the physical interpenetration of calcium alginate-polyethylene glycol as a composite coating. The finding demonstrated that the synthesized bio-based composite material exhibits stability in water, high optical transparency, complete oil resistance, and full degradability within 1 to 2 months. Furthermore, the composite material displayed enhanced mechanical properties in both dry and wet conditions, with a tensile strength of approximately 84 MPa, outperforming commercially available kraft paper and low-density polyethylene. Soy protein isolate established a rigid, coherent, and homogeneous network with BC fibrils, thereby augmenting mechanical properties. Calcium alginate can be effectively combined with BC, utilizing polyethylene glycol as a binder and plasticizer, to generate a densely packed structure with reduced hygroscopicity. This bio-based composite material demonstrated considerable potential for application in food packaging and other value-added sectors as a substitute for non-degradable plastics. © 2023 Society of Chemical Industry.

An overview of renewable energy technologies for the simultaneous production of high-performance power and heat

Combining heat and power (CHP) technology, which uses renewable energy sources as fuel, will be a promising solution to increase energy security. This report aims to examine CHP technologies based on renewable energy, seek to increase their efficiency and reduce the unsustainable nature of renewable resources, and then examine the existing articles from an economic and technical perspective. Heat and electricity are generated simultaneously in CHP technology; heat is the limiting factor in this issue. Therefore, it should be installed in a place requiring heat and population density because transmission losses are reduced in this case. Among renewable energy sources used as fuel for CHP power plants, biomass has the largest share, and among fossil fuels, natural gas and coal have the largest share in CHP, respectively. The United States, Russia, and China have the largest shares in renewable power plants, respectively. All the articles reviewed mention the need for heat storage for CHP power plants. If regional heating and cooling using CHP technology are used, biomass consumption can be reduced by 31.4% compared to single heating, and this amount can be used more in value-added sectors.

Measuring the level of technology at small-scale citronella oil agroindustry in Aceh

The development of the citronella oil agroindustry is facing challenges in terms of quality and limited production capacity, especially in the innovation and value-added sectors. This article aims to measure the level of application of innovation in the citronella oil agroindustry chain, starting from the aspects of cultivation, product handling, refining processes, and marketing institutions, including their effect on production value. This study takes location settings in five sub-districts of citronella oil production centers in Kabupaten Gayo Lues. A survey has been conducted on 40 respondents who were chosen deliberately to understand the general picture of the current production system of the community. To deepen the information, FGD was also conducted with 30 key informants. The results show that the application of innovations and good practices on all production lines from cultivation, post-harvest handling, refining, and marketing is low. So this has direct implications for the low productivity and value of citronella oil products produced. Four main components have the most influence, namely the handling of citronella leaves/leaves as raw materials, the refining process, the sale of citronella oil, and stock handling and marketing partnerships.

Dress Design Analysis and Pattern Making Techniques for Increasing the Efficiency of Dress Production

Dressmaking is a high value-added sector of the fashion industry in which the individuality and skills of designers play a prominent role. The appropriate use of the draping and the flat pattern techniques in the dressmaking process also play an important part in perfecting the finished product. The purpose of this study was to improve the understanding of dress design and identify a pattern production technique to enhence efficiency in each of the three elements of the dress manufactureing process. For this purpose, analysis of the design of 1,389 wedding dress photographs published in <i>Wedding 21</i>, Korea’s leading wedding magazine, during 2019 and 2020 was conducted. This analysis identified 15 bodice designs and 11 sleeve designs based on neckline and eight skirts based on silhouette which were ranked by frequency distribution. Patterns for the design of samples were then developed according to the highest combined frequency distribution of these three elements. Eight samples were finally produced to test the the efficiency of the patternmaking techniques empolyed and the selected designs. The findings from this study have practical applications, notably in improving the efficiency of pattern production techniques that will facilitate further growth in the dressmaking industry.

Sectoral distribution of FDI and employment: Evidence from post- transitional European countries

This paper examines, from the perspective of Post-Keynesian economics, the effects of Foreign Direct Investment (FDI) on the employment rate in 18 post-transitional European countries from 1995 to 2021. Using a two-step system Generalised Method of Moments (GMM) panel data estimator, we test the hypothesis that the employment impact of investment depends on the interaction of FDI and domestic investment in terms of crowding-in and crowding-out relationships, assuming that this relationship is sensitive to the sectoral distribution of FDI stock. Our findings suggest that the reallocation of FDI inflows from the manufacturing sector to the less labour intensive financial and information and communication technology (ICT) sectors tends to reduce the employment effect of FDI both directly and indirectly by reducing the magnitude of the crowding- in effect of FDI on domestic investment. The outcome of our study is of great interest to economic policy makers. If foreign investment displaces domestic investment and reduces employment in high value-added sectors, policies intended to attract foreign capital could be challenged and undermined. Otherwise, if foreign and domestic investment in sectors with high added value are complementary, it justifies policies aimed at attracting foreign investment.

The Effect of Farmer's Export, Import, and Exchange Rate on Value-Added of Agricultural Sector in Aceh Province, Indonesia

As one of the agricultural countries, Indonesia's population is highly dependent on farming for a living. Thus, this study is written to analyze the relationship between farmers' exports, imports, and the exchange rate of farmers on the value-added of the agricultural sector in Aceh Province, Indonesia. This study uses secondary data from the Central Bureau of Statistics of Aceh Province. This study uses quarterly time series data from 2007 to 2021, as many as 60 data series. By using the multiple linear regression model with Ordinary Least Square (OLS), the results show a positive and significant relationship between the increase in the export value and the farmer's exchange rate towards the increase in the value-added of the agricultural sector in Aceh Province. Meanwhile, the imported variable does not show a significant relationship to the value-added agricultural sector in Aceh Province in this study. Taken together, the variables of exports, imports, and farmers' exchange rates significantly affect the agricultural sector's added value in the selected models.

CT-based method to measure metal powder characteristics and to study their influence on the quality of additively manufactured parts

Laser powder bed fusion (LPBF) is increasingly used to produce metal industrial components for high value-added sectors, such as aerospace, automotive and biomedical. However, mechanical and structural properties of LPBF parts are often hindered by the large quality variability, poor geometrical and dimensional characteristics, complex surface texture and low density. The quality of the feedstock material is an important aspect to be taken into account, as it significantly influences such possible issues. In particular, metal powder used in LPBF should have shape and size distribution designed to facilitate good flowability, spreading and packing behaviour, so that the final fabricated parts have acceptable density, surface finish and mechanical properties. This work focuses on the accuracy of simultaneous measurement of powder size and shape from three-dimensional reconstructions obtained by X-ray computed tomography (CT). Results of CT measurements are compared with results from other methods based on laser diffraction and scanning electron microscopy. Different materials and powder morphologies were investigated. In addition, the CT-measured powder characteristics can be used to improve other CT analyses of LPBF parts.

Industrial transformations and regional inequalities in Europe.

An important channel through which less developed European countries have grown over the past twenty years is through the industrial transformation of their economies from low to higher value-added activities. The aim of the paper is to address the role of industrial transformation on regional imbalances, by analysing the different components of industrial productivity dynamics, namely the industrial composition, competition and reallocation effects. Based on both a shift-share analysis and a simulation analysis, the paper shows that the reallocation towards higher value-added sectors in Central and Eastern European (CEE) countries could in fact lead to higher regional inequalities. Our empirical results lead us to claim that short-term normative interventions should go in the direction of supporting “modern and technologically advanced traditional sectors” rather than necessarily pushing CEE countries towards a high value-added industry specialization.

Ireland’s Multinationals-Dominated Economy in the Pandemic: Did Big Tech and Big Pharma Save the Day?

Similar to the Eurozone crisis, Ireland engineered a more successful bounce back from the COVID-19 shock than crisis-hit peers. This article argues that the Irish path is less of a product of a generalizable export-led growth strategy, but, rather, can be explained by a set of idiosyncratic features. Using a wide array of macroeconomic indicators, the analysis assesses the opportunities and risks associated with Ireland's distinct path. It shows how strong ties to the United States, and emergence as the European hub for the world’s fastest growing firms sets Ireland apart from European peers. The US is a reliable “spender of last resort,” countercyclically spending and borrowing, boosting growth prospects of trading partners. Irish sectoral specialization in pharmaceutical manufacturing and digital services was also a boon in this crisis. The pandemic created opportunities for health-related industries; reliance on digital technologies helped digital firms. The article also finds, however, that banking on tech and pharma giants has significant limitations. First, multinationals’ accounting tricks artificially inflate economic statistics, and these two sectors are most affected. Second, to the extent that there is job-sustaining activity, it is not straightforward how the success of these sectors is transmitted to the rest of the economy. In the aftermath of the Eurozone crisis, the hospitality industry played a significant role as a “‘transmission belt,” receiving spillovers from the high value-added export sector. Since lockdowns hit hospitality the most, the social insurance function of fiscal policy is of paramount importance to ensure a more broad-based recovery.

Tsunami Impact Assessment and Vulnerability Index Development using Computable General Equilibrium (CGE) Model and Geographic Information System (GIS) – A Study on Mie Prefecture, Japan

Japan is highly prone to multiple natural hazards, such as typhoons, earthquakes, and tsunamis in general. However, the compound disaster that entailed earthquake, tsunami, and a nuclear crisis, along with disruption of the global supply chain triggered by the Great East Japan Earthquake in 2011, highlighted the need for a holistic risk assessment of impacts amplified by multiple disasters. According to the Cabinet Office of Japan, the occurrence probability of a Nankai Trough Earthquake and Tsunami is 70% within the next 30 years. It suggests the need for comprehensive impact assessment to enhance the disaster risk reduction strategies of the region. This study conducts a tsunami impact assessment using quantitative analysis to identify vulnerable industries in Mie Prefecture, Japan, famous for tourism, value-added sectors of aquaculture, food processing, and petroleum refining tanks situated in at-risk areas. To create a tsunami shock scenario, we apply a computable general equilibrium (CGE) model using an input-output table of the Mie Prefecture (2015 version) and geographic information system (GIS). The street-level business entity data enable us to incorporate with the disaster scenario to provide evidence-based damage estimates of capital and labor loss due to a tsunami. We present the simulation results of output change, price change, external trade, and welfare analysis and propose creating a vulnerability index (VI) for disaster impact. These quantified and visualized indicators would provide informative implications for ex-ante policymaking and risk financing to cope with fragile sectors effectively.

Pandemics in the History of Medicine and Variations of Pharmaceutical Market in Turkey During the Era of the Recent Covid-19 Corona Pandemic

The concept of Turkish pharmaceutical market may be verbalized as a gradual propagation of economic progresses all over the world together with advancements in medical technologies which was first introduced in the USA after it began to affect the economy by all means considerably which triggered to take some new steps and measures within the framework of globalization in the early 1980’s accordingly. Pharmaceutical market, a subgroup of chemical industry, is an integral part of medical services. Pharmaceutical market is quite influential not only on international economy but also on human health. Turkey has advanced technology and manufacturing standards in pharmaceutics. Such expenditures as licensing, patent works, and advance technology manufacturing can be costly in medical market. The main reasons for why the pharmaceutical market grows include easy access to medical services and changes in demographic structure. It is a value-added sector with lots of opportunities to import and export. It is a strategic sector as it offers treatment services and lots of research development activities. In this study, have also been compared the drug market in Turkey, import-made in Turkey, medical products market foreign in the pharmaceutical market rates in Turkey. The concept of Turkish pharmaceutical market has been dealt within this research study initially. Afterwards, import and export rates in Turkey and, medical products market in Turkey have also been included. The purpose of this study is to search for and compare various constituent ingredients of Pharmaceutical Market in Turkey such as the market of Pharmaceutical products in terms of manufacturing and importing such products, the market of medicinal products, the rates of the foreign commerce within the scope of Pharmaceutical Market in Turkey and the related trimester data belonging to the years of 2018-2019 and 2020. The adopted method of this study construe with the findings in respect to the market of medicinal products, the market of manufactured and imported medicinal products, the Pharmaceutical Market and also the foreign trade rates of the medicinal products in Turkey by reflecting such data on tables or diagrams accordingly.

Quality of human capital accumulation, higher education graduates and economic growth: A comparative analysis between BRICS, Southeast Asian and MENA countries

BACKGROUND: The question of the accumulation of the quality of human capital and its relationship with growth is very rarely addressed by the literature. OBJECTIVE: This article aims to investigate the impact of quality of human capital accumulation on economic growth for BRICS, Southeast Asian and MENA countries. METHODS: Thus, we utilize endogenous growth model of Lucas [5] that is the most appropriate for the human capital-growth question. We use yearly data for each group employed in this paper during the period of study from 1990 to 2015. RESULTS: The empirical results show that for BRICS and South East Asia countries, the nexus between quality of human capital and economic growth is positive, while for MENA countries the relationship has not been identified. Also, we show that positive link between quality of human capital and economic growth depends on the level of accumulation and effectiveness of higher education graduates and their employment rate in high value-added sectors. CONCLUSION: The relationship among human capital and economic growth does not only depend on the employment rate of university graduates and labor market matching mechanisms, but it also depends on the nature of the job and the efficiency and productivity of human capital.

IRON AND STEEL INDUSTRIES; A STRATEGIC SECTOR FOR TECHNO-ECONOMIC DEVELOPMENT AND NERVE CENTER FOR INDUSTRILIZATION IN NIGERIA

The Nigerian iron and steel industry established as a basis for industrialization has remained unproductive even as the year 2020 targeted for the country to become one of the world's top 20 economies is barely a few months away. Despite, the boom in the oil sector, the value-added sector is low while the inter-sectoral linkages are weak. This implies a boom in one activity rarely affects another in the sector, but will rather impact on the foreign economy from where imports were sourced. Nigeria relies mainly on crude oil to the neglect of the iron and steel sector which is a major determinant for the industrialization of any nation. Lack of industrialization and unemployment in Nigeria today which engenders insecurity could be linked to the comatose state of the Nigerian iron and steel industry. Thus, this paper discussed the iron and steel sector as a strategic sector for rapid development and nerve center for industrialization in Nigeria.

COMPETITIVENESS OF TURKISH WHITE GOODS INDUSTRY

Bilgi ve teknolojiye dayalı yüksek katma değerli sektörlerin dünya ticaretinden aldığı pay hızla artmaktadır. Orta üst teknoloji düzeyine sahip Beyaz eşya sektörü ülkemizi uluslararası ölçekte temsil eden önde gelen sektörlerden biridir. Çalışmada, 2008 – 2017 yılları arasında Türk Beyaz Eşya Sanayii’nin rekabet gücünün ve sürdürebilirliğinin belirlenmesi amaçlanmıştır. Bu amaç doğrultusunda ilk olarak Dünya beyaz eşya sanayiinin genel yapısı ve Türk beyaz eşya sanayii incelenerek, rekabet gücü ve Açıklanmış Karşılaştırmalı Üstünlükler Endeksi açıklanmıştır. Son olarak da Türk beyaz eşya sanayiinin rekabet gücü analizi, Balassa’nın “Açıklanmış Karşılaştırmalı Üstünlükler Endeksi”ne göre yapılmıştır. Yapılan hesaplamaların sonucuna göre toplam beyaz eşya sektörü ve ürün gruplarının endeks değeri 1’den büyük çıkmıştır ve dolayısıyla Türk beyaz eşya sanayii rekabet gücüne sahiptir. Sektörlere Sanayi 4.0’ın yön verdiği günümüzde, dünya piyasasında daha etkin yer almak için firmaların sektörün rekabet gücünü devam ettirirken, katma değeri daha yüksek, yoğun bilgi ve Ar-Ge yatırımı gerektiren, ileri teknolojili ürünlere ağırlık vermeleri ve Sanayi 4.0 dönüşümüne uyum sağlamaları gerekmektedir.

A regional assessment of trends in business development in Ukraine

The purpose of the research. The purpose of the article is to assess regional trends in business development in Ukraine. Methodology. The theoretical and methodological basis of the study is the scientific works of scientists in the field of business development in Ukraine. To achieve this goal, the following research methods were used: PEST-analysis of the external environment of SME development in the regions; methods of statistical analysis – to assess changes in the dynamics of GRP for 2014–2018. Results. It is investigated that from 2016 until in Ukraine there was a certain economic recovery, which is confirmed by the growth of consumption and income, as well as the growth of consumer lending and remittances. But in 2018, there was a decrease in exports and imports of goods and services. Exports decreased by 2.8 % of GDP, and imports by 1.9 % of GDP compared to the previous 2017 year. The decline in exports is due to weakening external demand for domestic goods and services. Despite some difficulties, a number of reforms have been implemented in Ukraine, which has had a positive impact on the economic situation. Reforms in Ukraine are supported by the international community. In 2018, the IMF provided Ukraine with a reserve loan for a period of 14 months in the amount of 3.9 billion USD. Ukraine received 4.4 billion USD in EU macro-financial assistance US and a loan of 349 million EUR under the World Bank Guarantee to ensure economic development. After the crisis of the economy in 2014, Ukraine managed to restore macroeconomic stability by adhering to flexible exchange rate limits, tight fiscal policy, financial and energy reforms. The signing of the Association Agreement with the EU in 2014 on the establishment of a Deep and Comprehensive Free Trade Area with the EU had a positive impact on Ukraine’s economy. It is investigated that in 2018 the share of micro, small and medium enterprises (SMEs) in Ukraine was over 90 % of the total number of enterprises. SMEs provided more than 60 % of jobs and almost 50 % of value-added in the business sector. More than 50 % of the SME structure is concentrated in wholesale and retail trade. The downside is the fact that most SMEs are concentrated in a low value-added sector of the economy. However, the share of SMEs engaged in IT technologies has been growing rapidly over the last five years. Wholesale and retail trade have the largest share (43.1 %) in the structure of small and medium enterprises in the Odessa region. Practical meaning. The results of the analysis will allow the authorities of the country and its individual territories to develop the necessary measures to improve business conditions, improve living standards and ensure the effectiveness of economic development of the territory. Prospects for further research. Development of an economic mechanism for the transformation of business processes in the system of competitive development of territories.

THE TEXTILE AND CLOTHING INDUSTRIALIZATION CYCLE

Starting with the industrial revolution in the United Kingdom in the 18th century, the textile and clothing (TC) sector has shown some streamlined stages and characteristics that seem to reoccur even today in a similar sequence. The TC industry develops capitalizing on the adoption of its industrial technology, creates employment for relatively low skilled labor converting them into industrial workers. At this stage it also triggers the development of other manufacturing industries through positive technical, labor or managerial spillovers. As the TC manufacturing technology is further adopted by the businesses, the sector further grows, enhances productivity and becomes part of an international supply chain. Faced with international competition, the TC sector reaches a bifurcation point when it mostly diminishes or it is transformed into a higher value-added sector through fashion, branding or technical textiles. As such, the TC industry proclaims Kaldor’s growth laws. The idea is supported by several timebound country experiences which are located on the TC Cycle. The suggested streamlined stages and characteristics of the TC sector provides some valuable development policy recommendations for some African countries that are striving to industrialize as well as for countries that reached to bifurcation point on the TC Cycle, such as Turkey.

A new dawn for MENA firms: service trade liberalization for more competitive exports

ABSTRACTWhile micro-level empirical evidence has emerged to highlight the positive effect of services deregulation on the productivity and exports of manufacturing firms in developing countries, the MENA region has been neglected in the literature. The current paper fills the gap by exploring the effect of service protection on the extensive and intensive trade margins of manufacturing and services firms in selected MENA countries for 2013. The service protection variable is constructed using two different measures: the service trade restrictiveness index and the tariff equivalent of services, weighted by the input-output technical coefficient of service sectors. Our results show that service protection is a fixed export cost, exerting a negative and significant effect on the extensive margin, without having a significant effect on the intensive margin of the firm. We also find that the burden of service barriers falls on small firms that struggle to enter international markets, and on firms operating in high value-added sectors such as ‘motor vehicles’.

Improving the Effectiveness of Anti-Crisis Measures of the Russian Federation Government for 2019–2021

The subject of the researchis measures of the anti-crisis regulation to be taken by the Russian Government aiming to strengthen the financial system of Russia, improve the performance of the state socio-economic systems at various levels, support all sectors of the economy and prevent irreversible processes that could be provoked by Western sanctions.The purpose of the researchwas to substantiate the feasibility of transition to the principles of integrity and consistency in the development and implementation of the above measures along with increasing the personal responsibility of managers for their implementation and monitoring the approved system of indicators when innovative developments of universities are put into practice. The research assessed the role of the bankruptcy institution in the state management of the economy as well as the impact of sanctions on the current socio-economic system, analyzed the consequences of certain regulations adopted by the Russian Government and their impact on the pricing policy of Russian enterprises, the importance of certain economic parameters of international and intergovernmental relations for the Russian economy, the efficiency of the state regulation of the housing sector, activities of non-government pension funds. there are all the reasons to It is concluded that an integrated approach to the crisis management is a powerful tool for the state to increase its efficiency and effectiveness in the constantly changing environment and maintain the effectiveness of internal processes at the macro-, meso- and micro-levels of the economy. The domestic and foreign policies of theRussian Federation need modernization through structural transformation in order to increase the share of high value-added sectors in the economy with a corresponding decrease in the share of low profitability sectors.