scholarly journals Characterising deindustrialisation: An analysis of changes in manufacturing employment and output internationally

2008 ◽  
Vol 33 (3) ◽  
pp. 433-466 ◽  
Author(s):  
Fiona Tregenna
Keyword(s):  
Economic Growth ◽  
Manufacturing Sector ◽  
Value Added ◽  
Decomposition Techniques ◽  
Total Employment ◽  
Manufacturing Employment ◽  
Labour Intensity ◽  
Long Run ◽  
Employment Share ◽  
Special Growth

Abstract Deindustrialisation is typically conceptualised as a decline in manufacturing as a share of total employment. From a Kaldorian perspective deindustrialisation could have negative implications for long-run growth, given the special growth-pulling properties of manufacturing. However, defining deindustrialisation purely in terms of employment share is conceptually limiting given that some of the Kaldorian processes operate primarily through output rather than employment, as well as blunting empirical analysis by not focussing enough on changes in manufacturing share of gross domestic product (GDP). This study develops a new method using decomposition techniques to analyse changes in manufacturing employment levels and shares in 48 countries over periods of ‘deindustrialisation’. The analysis separates out changes in the levels and shares of employment manufacturing into components associated with changes in the share of manufacturing in GDP, the growth of manufacturing value-added, the labour intensity of manufacturing production and economic growth. The results indicate that in most cases the decline in manufacturing employment is associated primarily with falling labour intensity of manufacturing rather than an overall decline in the size or share of the manufacturing sector. We suggest that deindustrialisation should appropriately be defined in terms of a sustained decline in both the share of manufacturing in total employment and the share of manufacturing in GDP.

scholarly journals A Long Run ARDL Investigation of Manufacturing Adjustment to the Services Economy in Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 95-107
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Capital Accumulation ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Business Services ◽  
Development Indicators ◽  
Services Sector ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run

The long-run equilibrating relationship between the value-added growth of services and manufacturing is investigated in this research. The study is based on the well-established empirical link between manufacturing and service activities, and in particular, manufacturing's servicification. The selected variables' annualized time series were obtained from the World Development Indicators. The paper used the autoregressive distributed lag framework to regress manufacturing value-added growth against service value-added growth while accounting for economic growth, factor input growth, and trade effects. The findings revealed that in Nigeria, a strong performing services sector has a large negative impact on manufacturing performance, whereas capital accumulation and income growth have positive effects. The supply constraint of business services that the manufacturing sector requires is at the root of this finding. The paper advocates for policy frameworks that support the efficient supply of business services as both a manufacturing input and a productivity enhancer for the entire economy.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals THE CO - INTEGRATION ANALYSIS OF EFFECT OF VALUE ADDED TAX AND EXCISE DUTIES ON ECONOMIC GROWTH IN NIGERIA

2021 ◽  
Vol 1 (1) ◽  
pp. 44-53
Author(s):  
ADEGBITE, TAJUDEEN ADEJARE
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Value Added Tax ◽  
Excise Duty ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Excise Duties ◽  
Integration Analysis

This study examined the co-integration analysis of effect of value added tax and excise duties on economic growth in Nigeria. It also looked at the direction of causality among value added tax excise duty, interest rate, exchange rate and economic growth employing the method of Johansen co-integration and the Granger causality tests using data spanning the period 1994- 2014. Results showed that VAT has positive significant impact on GDP in the short run but has negative impact on GDP in the long run with (  = 1.296417; t=7.41; P>|t|= 0.000) and ( =- 13.38159; z=-3.60 , P>|z|= 0.000) respectively. Also, VAT does not granger cause GDP. Excise duty impacted GDP negatively in the short run but positively in the long run with (=-1.111069; t=-5.16, , P>|t|= 0.000) and ( =37.54469; z = 4.07; P>|z|= 0.000) respectively. It is recommended that, once the value added tax impacted economic growth positively in the shortrun but negative in the long run, government should increase the rate of value added tax in Nigeria, this will in turn boosting the revenue generation in Nigeria. Also, government should increase excise duty on tobacco and alcoholic so as to have positive significant impact on economic growth in the short run.

scholarly journals An analysis of key sectors of economic growth in Greece: A VAR testing approach

2018 ◽  
Vol 7 (4) ◽  
pp. 7-12
Author(s):  
Konstantinos Spinthiropoulos ◽  
Alexandros Garefalakis ◽  
Dimitrios Charamis ◽  
Georgios Gerakis ◽  
Anastasios Konstantinidis
Keyword(s):  
Economic Growth ◽  
Economic Crisis ◽  
Manufacturing Sector ◽  
Economic Recession ◽  
Tourism Industry ◽  
Term Relation ◽  
Long Run ◽  
Greek Economy ◽  
The One ◽  
The Relationship

The purpose of the study is to examine the relationship that exists between tourism, money supply and construction, on the one hand, and the economic growth in Greece, using a multivariate autoregressive model VAR. The long-term relation based on the Cointegration test results has shown the existence of a long run relation despite the prolonged economic recession. The analysis was carried out for the period from 1965 to 2015. The empirical results show that the economy of Greece can recover and return to long run equilibrium with a speed of adjustment reaching 3,60 % per year. The global economic crisis has undoubtedly affected the Greek economy. Long before the onset of the economic crisis, Greece applied a model of economic growth that relied on the growth of the manufacturing sector. In particular, the development of the construction sector was the engine of the Greek economy. However, through our analysis, it turns out that the engine for the development of the Greek economy is tourism rather than construction. The relationship between construction and the supply of money in Greece’s GDP is positive. However, the dynamics of the tourism industry stand out in comparison to the other areas examined.

scholarly journals Poverty and Agriculture in Southern Africa Revisited: A Panel Causality Perspective

SAGE Open ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 215824401982885 ◽  
Author(s):  
Festus Victor Bekun ◽  
Seyi Saint Akadiri
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Southern Africa ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Value Added ◽  
Panel Causality ◽  
Long Run ◽  
Short Run

Agricultural advancement is considered a panacea for poverty reduction, particularly, in developing countries. This study empirically investigates the dynamic linkage between agricultural value added (AVA) and poverty reduction for a panel of nine countries in Southern Africa using a second-generation panel approach for the period 1990 to 2015. Empirical results show that agricultural development is necessary but not a sufficient policy to combat poverty as it is only viable in the short run. Thus, we suggest long-run economic programs and/or strategies that will complement agricultural development toward poverty alleviation to spur economic growth in the sampled region.

Is Liberalisation Associated with Higher Productivity? A Case Study of Punjab Manufacturing

2007 ◽  
Vol 11 (4) ◽  
pp. 53-65
Author(s):  
Ravi Kiran ◽  
Manpreet Kaur
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Manufacturing Sector ◽  
Research Work ◽  
Value Added ◽  
Business Environment ◽  
Empirical Literature ◽  
Factor Productivity ◽  
Policy Regime ◽  
Indian Economy

Productivity is an important concept in the context of the economic growth of a nation. The rate of productivity in accelerating the pace of economic growth is well recognised in both the theoretical as well as empirical literature on growth. The significance of productivity for economic growth was highlighted by Kuznets (1966) when he showed that rapid gain in industrial productivity was the crucial underpinning of Western Industrialization. The Indian Economy was thrust into throes of rapid change in the nineties when the then government of India adopted the New Economic Policy. Liberalization, Privatization and Globalization — became the three planks by which the Indian Economy was propelled into the fusion. This process has had maximum impact on the manufacturing sector, as it has radically changed its business environment and future growth dynamics. All the states of Indian union have been affected differently due to the structural changes. In response to changed policy regime different sub sectors of industry of Punjab have responded differently to adjust optimally. The present research work focuses on studying the response of manufacturing industries in Punjab to the changed policy regime after the advent of liberalisation and privatisation process in India. The present study analyses the trends in value added, labour, capital as well as trends in labour, capital and total factor productivity for sixteen industrial groups on the organised manufacturing sector for the period 1980 — 81 to 2002 — 03 and also for two sub periods, period I, 1980 — 81 to 1990 — 91 and period II, 1991 — 92 to 2002 — 03. The present study tries to examine the trends in partial productivities as well as total factor productivity in the two sub periods to see whether there has been an improvement in productivity in the post 1991 period, the period associated with liberalisation and globalisation. The study tries to analyse the industries which have been showing better performance in terms of partial and total factor productivity and also study the trends of the industries which have not performed well in the period of analysis.

Causality between VAT and economic growth in Nigeria: An ARDL bounds testing approach

2018 ◽  
Vol 6 (1) ◽  
pp. 55
Author(s):  
Hammed Agboola Yusuf ◽  
Irwan Shah Zainal Abidin ◽  
Normiza Bakar ◽  
Oluwaseyi Hammed Musibau
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Error Correction ◽  
Trade Openness ◽  
Value Added ◽  
Error Correction Model ◽  
Domestic Investment ◽  
Correction Model ◽  
Long Run ◽  
Short Run

Value Added Tax(VAT) is a consumption tax imposed at every stage of consumption level whose burden is burned by final consumer of goods and services. In most developing economies in the world, VAT as a source of revenue to the government that has been notable for its significant role in ensuring economic efficiency. However, VAT revenue has been underutilised in Nigeria due to a high level of corruption in the process of administering the tax. This study examines the impact of VAT, domestic investment and trade openness on economic growth in Nigeria from 1980 to 2016 using ARDL techniques. The research design is time series, and the data were analysed using time series unit root test, error correction model regression, short run and long run ARDL. The result found that VAT, domestic investment and trade openness had a positive and significant impact on real GDP. Also, corruption index is negative also significant in the long run. In the same vein, past value added tax had a negative and weak significant impact on real gross domestic product indicating convergence to long-run causality between economic growths and VAT and economic growth. The Error Correction Model (ECM (-1)) coefficient had a negative and statistically significant sign. This shows that 39 percent can quickly correct short-run deviation. The study, therefore,  recommends that tax administrative loopholes should be plugged for tax revenue to contribute immensely to the development of the economy since past VAT had a significant impact on economic growth.

FOREIGN DIRECT INVESTMENTS AND MANUFACTURING SECTOR PERFORMANCE IN NIGERIA, (1970-2009)

2013 ◽  
Vol 03 (04) ◽  
pp. 39-56
Author(s):  
Adejumo Akintoye Victor
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Value Added ◽  
Foreign Direct Investments ◽  
Long Run ◽  
Negative Effect ◽  
Sector Performance ◽  
The Relationship

The study examined the relationship between foreign direct investment and the value added to the manufacturing industry in Nigeria, between the period 1970 and 2009. In view of the development and industrialising desires of Nigeria, as well as the foreign aid received in form of private investments, it is pertinent to examine the effect the presence of multinationals has had in shaping the Nigerian manufacturing industry. Using the autoregressive lag distribution technique to determine the relationship between foreign direct investment and manufacturing value added, it was discovered that in the long-run, foreign direct investments have had a negative effect on the manufacturing sub-sector in Nigeria.

scholarly journals Electricity Consumption and Economic Growth in Nigeria: A Sectoral Analysis

2019 ◽  
Vol 5 (1) ◽  
pp. 45 ◽  
Author(s):  
Akomolafe Kehinde John
Keyword(s):  
Economic Growth ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Electricity Consumption ◽  
Vector Error Correction ◽  
Agriculture Sector ◽  
Long Run ◽  
Sectorial Analysis ◽  
Short Run ◽  
Electricity Conservation

This paper examines the causality between electricity consumption and economic growth in Nigeria, with a focus on sectorial analysis. The sectors considered are manufacturing sector, agriculture sector, and the service sector. The study covers the periods from 1981 to 2014. The study was done in a vector error correction model (VECM). The results show that the causality run from  manufacturing sector to electricity consumption in long run, but a bidirectional causality in the short run, from electricity consumption to service sector output  in the long run, and  from electricity consumption to service sector output in long run. There is no short run causality between electricity consumption and service sector and agricultural sectors outputs. The paper concludes with the recommendation that government should be careful in implementing electricity conservation policy

scholarly journals Does the Abundance of Natural Resources Crowd-Out the Manufacturing Sector? Evidence from Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 108-126
Author(s):  
Nzeh Innocent Chile ◽  
Benedict I Uzoechina ◽  
Millicent Adanne Eze ◽  
Chika P Imoagwu ◽  
Uzoma M. Anyachebelu
Keyword(s):  
Natural Resources ◽  
Inflation Rate ◽  
Manufacturing Sector ◽  
Value Added ◽  
Capital Formation ◽  
Fixed Capital ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Short Run ◽  
Crowd Out

Our objective in this study is to investigate if natural resource abundance can crowed-out the manufacturing sector in Nigeria. Under the framework of an ARDL and over a period of 1990-2019, findings of the results showed that in the short-run, natural resources positively impact on the manufacturing value added in the current period; however, after a one period lag, the contribution of natural resources to the manufacturing value added becomes negative. We also found that in the short-run, real interest rate, inflation rate and trade openness are negatively linked to the manufacturing value added, while employment in industry and gross fixed capital formation are positively related to the manufacturing value added. In the long-run, natural resources contributed positively to the manufacturing value added. The long-run results also show that the gross fixed capital formation and inflation rate negatively impact on the manufacturing valued added. The implication of our finding is that natural resources rent is closely linked to the success of the manufacturing sector and as such can also crowd-out the manufacturing sector. On grounds of these findings, we recommend, among others; that the proceeds from natural resources should be used to build critical infrastructure necessary to improve the performance of the manufacturing sector. This way, the economy can be diversified to create the needed employment.

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