A comparison of observed and long-run productivity of and demand for inputs in the Canadian lumber industry

1986 ◽  
Vol 16 (3) ◽  
pp. 443-455 ◽  
Author(s):  
B. K. Singh ◽  
J. C. Nautiyal
Keyword(s):  
Economies Of Scale ◽  
Labour Productivity ◽  
Adjustment Process ◽  
Lumber Industry ◽  
Long Run ◽  
Factor Demand ◽  
Short Run ◽  
Interrelated Factor ◽  
Cost Paths ◽  
The Individual

An interrelated factor demand approach was used to study the long-term productivity of and demand for inputs in the Canadian lumber industry covering the period of 1955 to 1982. The long-run, least-cost amounts of labour, capital, roundwood, and energy were obtained by imbedding a cross-stock adjustment process in the share equations of the translog cost function. These least-cost amounts, from which the short-run adjustments were removed, were then used to obtain the long-run productivity of each input. The percentage deviations of the observed amounts of each input from their least-cost levels were computed to determine the degrees of allocative inefficiencies with respect to the individual inputs. Similar deviations of the observed productivity and real total factor costs from their long-run levels were also computed. The results indicated that (i) factor demands in the Canadian lumber industry are actually interrelated, i.e., a disequilibrium in the demand for an input creates compensating adjustments in the demand for other inputs; (ii) there are economies of scale in production of lumber in Canada, but technological progress is unobservable; (iii) simulation of the actual and the least-cost paths of factor utilizations indicated substantial misallocation of each input over major parts of the sample years; (iv) the observed labour productivity increased at the rate of 2.9% per annum while, net of short-run conditions, the rate was 3.7% per annum over the sample period; and (v) productivities of other three inputs declined both on the observed and the long-run productivity paths, but such declines were relatively slower on the long-run paths.

scholarly journals PRODUCTIVITY AS A DETERMINANT OF LABOUR WAGE IN NEW ZEALAND’S CONSTRUCTION SECTOR

2019 ◽  
Vol 25 (5) ◽  
pp. 900-914 ◽  
Author(s):  
Mustafa Ozturk ◽  
Serdar Durdyev ◽  
Osman Nuri Aras ◽  
Audrius Banaitis
Keyword(s):  
Unemployment Rate ◽  
Statistical Tests ◽  
Labour Productivity ◽  
Productivity Index ◽  
Adjustment Process ◽  
Construction Sector ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
Johansen Cointegration Test

The empirical relationships between labour wages, unemployment rate and the labour productivity index in New Zealand’s construction sector (for the period of 1983–2017) were investigated. The Johansen cointegration test and vector error correction mechanism were used to determine the existence of long-run relationships between the variables and the adjustment process of the short-run disequilibrium into the long-run equilibrium. The results show that the labour productivity index positively affects the labour wage, while the effect of unemployment rate is negative in the long run. That is, the more productive the labour, the more the wages earned. Related statistical tests on the residuals proved that the model and its findings are reliable.

scholarly journals Currency Depreciation, Trade Balance and Intra-Industry Trade Interactions in Turkey’s OECD Trade

2016 ◽  
Vol 8 (4) ◽  
pp. 8 ◽  
Author(s):  
Mehmet Demiral
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Adjustment Process ◽  
Industry Trade ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

<p>This study re-examines the determinants of Turkey’s trade balance in its manufactures trade with 33 OECD-member countries for the short-run and the long-run. Unlike other studies, in the relationships we also control the moderating effects of the availability of import substitutes proxied by intra-industry trade. We analyze quarterly aggregated time-series data of the period spanning from 1998.QI to 2015.QIII, following the autoregressive distributed lag (ARDL) bounds testing approach to the cointegration and the error correction modeling. Estimation results reveal that real effective exchange rate, together with domestic and foreign incomes are still among the core determinants of Turkey’s trade balance in the manufacturing sectors. There is no significant impact of domestic final oil prices that also include all the taxes on gasoline. The trade balance depends on domestic income negatively and the aggregated income of the OECD countries positively. The finding that real depreciation of Turkish lira against to those of Turkey’s OECD trade partners improves trade balance in both the short-run and the long-run, indicates no evidence of J-curve adjustment process. Unsurprisingly, the intra-industry trade seems to be an important factor that moderates the elasticities of trade balance to its determinants, especially to real effective exchange rate and domestic income. Overall results underline the importance of import-substitution capability besides the export-oriented production to ease the longstanding large trade deficits for Turkey.</p><strong></strong>

scholarly journals Bounds Testing Approach to Cointegration: A Re-examination of FDI and Growth in Vietnam

2013 ◽  
Vol 218 ◽  
pp. 94-113
Author(s):  
ANH PHẠM THẾ ◽  
ĐÀO NGUYỄN THỊ HỒNG
Keyword(s):  
Economic Growth ◽  
Small Sample Size ◽  
Small Sample ◽  
Adjustment Process ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
Lag Model

This study examines the econometric and empirical evidence of both causal and long-run relationship between foreign direct investment (FDI) and economic growth in Vietnam, covering a time span of 21 years from 1991 to 2012. The recent and robust methodology of bounds testing or autoregressive distributed lag model (ARDL) approach to Cointegration is employed for the empirical analysis. This technique can capture both short-run and long-run dynamics of variables, particularly in small sample size cases. The findings indicate the existence of a Cointegration relationship between the two time series and a modest adjustment process from short-run to long-run equilibrium. Further results from Granger causality tests conducted within the error correction model confirm a bi-directional causality between economic growth and FDI over the study period.

Common Markets Measuring Price Integration in European Agricultural Markets

2006 ◽  
Author(s):  
Crina Viju ◽  
James Nolan ◽  
William A. Kerr
Keyword(s):  
Market Integration ◽  
The European Union ◽  
Monthly Data ◽  
Agricultural Prices ◽  
Eu Integration ◽  
Long Run ◽  
Short Run ◽  
The Individual ◽  
Common Markets ◽  
The Eu

The accession of Austria, Finland and Sweden to the European Union (EU) is assessed from the perspective of market integration in key agricultural sectors. An empirical investigation is conducted using monthly data for two periods: from 1975:01-1994:12 (the pre-EU period) and 1995:01-2004:12 (post-EU period). The existence of market integration both within the countries and within the EU is tested using time-series methods. A long-run equilibrium between prices for the same good in different markets does not exclude the possibility of short-run deviations in the individual data, so part of this analysis consists of estimating an econometric model (error correction) to uncover long-run effects of price deviations. Only a subset of agricultural prices moves together after EU integration.     Full text available at: https://doi.org/10.22215/rera.v2i1.164

The Implementation of Innovative Technologies in Healthcare

2011 ◽  
pp. 321-332
Author(s):  
Eddy M.M. Adang
Keyword(s):  
Decision Making ◽  
Clinical Practice ◽  
Cost Effectiveness ◽  
Economies Of Scale ◽  
Daily Clinical Practice ◽  
Necessary Condition ◽  
Successful Implementation ◽  
Innovative Technologies ◽  
Long Run ◽  
Short Run

Proven cost-effectiveness of innovative technologies is more and more a necessary condition for implementation in clinical practice. But proven cost-effectiveness itself does not guarantee successful implementation of an innovation. A reason for this could be the potential discrepancy between efficiency on the long run, on which cost-effectiveness is based, and efficiency on the short run. In economics, long run and short run efficiency are discussed in the context of economies of scale. This chapter addresses the usefulness of cost-effectiveness for decision making considering the potential discrepancy between long run and short run efficiency of innovative technologies in healthcare, the potential consequences for implementation in daily clinical practice, explores diseconomies of scale in Dutch hospitals, and makes suggestions for what strategies might help to overcome hurdles to implement innovations due to that short run-long run efficiency discrepancy.

scholarly journals Common Markets Measuring Price Integration in European Agricultural Markets

2006 ◽  
Vol 2 (1) ◽  
Author(s):  
Crina Viju ◽  
James Nolan ◽  
William A Kerr
Keyword(s):  
Market Integration ◽  
The European Union ◽  
Monthly Data ◽  
Agricultural Prices ◽  
Eu Integration ◽  
Long Run ◽  
Short Run ◽  
The Individual ◽  
Common Markets ◽  
The Eu

The accession of Austria, Finland and Sweden to the European Union (EU) is assessed from the perspective of market integration in key agricultural sectors. An empirical investigation is conducted using monthly data for two periods: from 1975:01-1994:12 (the pre-EU period) and 1995:01-2004:12 (post-EU period). The existence of market integration both within the countries and within the EU is tested using time-series methods. A long-run equilibrium between prices for the same good in different markets does not exclude the possibility of short-run deviations in the individual data, so part of this analysis consists of estimating an econometric model (error correction) to uncover long-run effects of price deviations. Only a subset of agricultural prices moves together after EU integration.

scholarly journals The Effects of Public Debt on Economic Growth in Bangladesh: An Evidence from the ARDL Bound Testing Approach

2020 ◽  
pp. 87-95
Author(s):  
Kazi Mezbah Uddin Ahamad ◽  
Md. Mominul Islam
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Labour Productivity ◽  
Significant Rise ◽  
The Public ◽  
Labour Productivity Growth ◽  
Long Run ◽  
Domestic Savings ◽  
Short Run ◽  
Testing Approach

Public debt is intended to bridge the gap between domestic savings and investment. This paper examines the effect of public debt on economic growth in Bangladesh in the short run and the long run. It finds a significant positive relationship to exist between public debt and economic growth in the short-run while a significant rise in the public debt in Bangladesh appears to be a burden for the economic growth in the long run controlling for other determinants of growth. This suggests that funds have not been utilized in the productive economic avenues which might have improved the economic growth scenario in Bangladesh. Also, the adverse effect exerted by public debt may further be responsible for a reduction in investment and slower growth of capital stock, which eventually can hamper labour productivity growth in the country in the long run.

Cointegration and Causality Between Foreign Direct Investment, Trade and Economic Growth: Empirical Evidence from India’s Post Economic Reform Period

2021 ◽  
pp. 231971452110573
Author(s):  
Kunwar Milind Singh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Economic Reform ◽  
Direct Investment ◽  
Causal Effect ◽  
Labour Productivity ◽  
Real Economy ◽  
Long Run ◽  
Macroeconomic Indicators ◽  
Short Run

International trade and capital flows are the key macroeconomic indicators of a country’s balance of payment, and they impact the real economy. This study estimates the long-run association between exports, imports, foreign direct investment (FDI) and economic growth since India’s economic reform in 1991 until 2019. Johansen multivariate cointegration method has been adopted to study this association and to develop long-run cointegration model. The augmented Dickey–Fuller test results show that variables are non-stationary at level and stationary at first difference. The cointegration model suggests a long-run relationship among GDP per person employed (GDPPE), exports, imports and FDI. The result shows that exports are the major determinant and positively influences the GDPPE whereas imports and FDI negatively influence GDPPE. The imports affect GDPPE more negatively than FDI. The vector error correction model finds long-run causality from GDPPE, exports and imports towards FDI and short-run causality from GDPPE towards FDI, imports towards FDI and GDPPE towards exports. The policy focus should be on export promotion and to closely watch the causal effect of labour productivity on FDI and exports, and imports on FDI.

Has the Export Pricing Behaviour of German Enterprises Changed?

2007 ◽  
Vol 227 (3) ◽  
Author(s):  
Kerstin Stahn
Keyword(s):  
Export Price ◽  
Price Setting ◽  
Competitive Pressure ◽  
Product Categories ◽  
Long Run ◽  
Short Run ◽  
Price Determinants ◽  
Pass Through ◽  
The Individual ◽  
The Impact

SummaryThe question as to whether the globalisation-related increase in competitive pressure may have caused the importance of cost pass-through (CPT) and pricing-to-market (PTM) for export pricing in Germany to shift since the 1990s is addressed by testing the long-run export pricing behaviour of German enterprises for changes in the impact of its determinants. As globalisation may have affected competitive pressure in individual product markets differently, export pricing is analysed for 11 product categories. Analytically, this problem is solved by applying the Saikkonen (1991) approach to estimate the individual export price categories in single equations. The first hypothesis – that CPT is stronger, and PTM weaker, for heterogeneous products than for homogeneous products – is found to hold more for CPT than for PTM. The second hypothesis, which presumes that CPT has weakened and PTM has strengthened since the 1990s, is confirmed with respect to the overall outcome, although for several product categories the results conflict with the hypothesis. Moreover, error correction models are used to test exporters’ short-run price-setting behaviour for asymmetry, ie whether short-run increases in the export price determinants are passed through to a different extent than decreases. It is shown that symmetric export pricing is seldom rejected.

Dynamic adjustments in the United States and Canadian construction industries

1991 ◽  
Vol 21 (3) ◽  
pp. 326-332 ◽  
Author(s):  
Brett Gellner ◽  
Luis Constantino ◽  
Michael Percy
Keyword(s):  
United States ◽  
Decomposition Analysis ◽  
Adjustment Costs ◽  
The United States ◽  
Demand Substitution ◽  
Demand Elasticities ◽  
Long Run ◽  
Factor Demand ◽  
Wood Panels ◽  
Short Run

A factor demand dynamic model is estimated for the Canadian and United States construction industries using quarterly data from 1979 through 1986. The model allows for the existence of adjustment costs in the industry, related for example, to the innovative nature of some products. The demand for nonveneered structural wood panels is consistent with the behavior of an innovative product in the United States but not in Canada. A labor–capital composite input is not quasi-fixed in either country. Short-run adjustments, long-run demand elasticities, and biases of technical change are also derived. A decomposition analysis is used to investigate factors underlying the demand substitution of nonveneered structural wood panels for plywood.

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