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.

Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

2020 ◽  
Vol 47 (5) ◽  
pp. 663-674
Author(s):  
Deepti Singh ◽  
Shruti Shastri
Keyword(s):  
Educational Attainment ◽  
Peer Review ◽  
Unemployment Rate ◽  
Public Expenditure ◽  
Secondary Level ◽  
Content Type ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
Enrolment Ratio

PurposeThe purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017.Design/methodology/approachThe study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaran et al. (2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model.FindingsThe empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate.Originality/valueThe study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0396

scholarly journals MEASURING CO-MOVEMENT OF REAL INTEREST RATE AND INFLATION RATE: USING VEC APPROACH

2020 ◽  
Vol 7 (6) ◽  
pp. 66-76
Author(s):  
Md. Rasel Hossain ◽  
Ahsanul Haque ◽  
Md. Abdullah Amir Hamja ◽  
M. Shohel Rana
Keyword(s):  
Causal Relationship ◽  
Unit Root ◽  
Unit Root Test ◽  
Testing Procedure ◽  
Vector Error Correction ◽  
Unit Root Testing ◽  
Vec Model ◽  
Long Run ◽  
Short Run ◽  
Johansen Cointegration Test

It is important to know the future movement of economic variables for the planning and development of a country, Vector Error Correction (VEC) Model has been applied to disclose hidden long run as well as short-run patterns of the selected variables. ADF unit root testing procedure was applied to satisfy the conditions of applying the VEC Model. Using Johansen cointegration test long-run cointegration has been justified. But the VEC model reveals that long run significant causal relationship between the variables whereas there is no short-run causal relationship. The parameter was estimated using the OLS estimation technique. The validity of the model was confirmed by applying different quantitative approaches such as normality test, autocorrelation test, Portmanteau test, Unit root test, and various graphical approaches which suggested model selection and estimation were correct. The result of this present study may help Govt. agencies as well as planners to take an idea.

Does government expenditure reduce unemployment in Egypt?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanan AbdelKhalik Abouelfarag ◽  
Rasha Qutb
Keyword(s):  
Unemployment Rate ◽  
Government Expenditure ◽  
Vital Role ◽  
Content Type ◽  
Vector Error Correction ◽  
Public Investments ◽  
Long Run ◽  
Johansen Cointegration Test ◽  
The Government ◽  
The Impact

PurposeThis research seeks to empirically examine the impact of government expenditure on the unemployment rate in Egypt during the period of 1980–2017. In addition, it examines whether the distinction between discretionary and nondiscretionary items of government expenditure have a different effect on unemployment.Design/methodology/approachThe study employs the Johansen cointegration test to ensure the long-run equilibrium relationship among the variables, then the vector error correction model (VECM) to explore the dynamic short and long-run effects.FindingsThe empirical results of this research reveal that increasing government expenditure causes an increase in the unemployment rate in the long-run. Both discretionary expenditures and nondiscretionary expenditures increase the growth of unemployment by approximately the same coefficient. The worsening impact of discretionary expenditures on unemployment is highly attributed to the compensation of employees and the government subsidies. Investment expenditure has an insignificant effect because of its minor percentage in government expenses.Practical implicationsRedirecting the unnecessary expenditures toward labor-intensive public investments is recommended, in addition to reducing domestic and foreign debts. The government has to work hard to increase the economic growth rate, as it has a vital role in reducing unemployment.Originality/valueThis study is one of the first attempts to analyze the effect of government expenditure on the unemployment rate in Egypt. Moreover, this research distinguishes between the effects related to discretionary and nondiscretionary items of government expenditure.

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 MEASURING CO-MOVEMENT OF REAL INTEREST RATE AND INFLATION RATE: USING VEC APPROACH

2020 ◽  
Vol 7 (6) ◽  
pp. 66-76
Author(s):  
Md. Rasel Hossain ◽  
Ahsanul Haque ◽  
Md. Abdullah Amir Hamja ◽  
M. Shohel Rana
Keyword(s):  
Causal Relationship ◽  
Unit Root ◽  
Unit Root Test ◽  
Testing Procedure ◽  
Vector Error Correction ◽  
Unit Root Testing ◽  
Vec Model ◽  
Long Run ◽  
Short Run ◽  
Johansen Cointegration Test

It is important to know the future movement of economic variables for the planning and development of a country, Vector Error Correction (VEC) Model has been applied to disclose hidden long run as well as short-run patterns of the selected variables. ADF unit root testing procedure was applied to satisfy the conditions of applying the VEC Model. Using Johansen cointegration test long-run cointegration has been justified. But the VEC model reveals that long run significant causal relationship between the variables whereas there is no short-run causal relationship. The parameter was estimated using the OLS estimation technique. The validity of the model was confirmed by applying different quantitative approaches such as normality test, autocorrelation test, Portmanteau test, Unit root test, and various graphical approaches which suggested model selection and estimation were correct. The result of this present study may help Govt. agencies as well as planners to take an idea.

Inflation-Unemployment Trade-Offs In ASEAN-10

2020 ◽  
Vol 9 (2) ◽  
pp. 241-256
Author(s):  
Nurul Lisani ◽  
Raja Masbar ◽  
Vivi Silvia
Keyword(s):  
Unemployment Rate ◽  
Inflation Targeting ◽  
Phillips Curve ◽  
Panel Cointegration ◽  
Vector Error Correction ◽  
Trade Offs ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Short Run ◽  
Variance Decompositions

This study empirically explores the nature of inflation-unemployment dynamic causal relationships both in the short and long-run in the ASEAN-10 over the 1989-2018 period. Based on the panel cointegration test, the study documented a long-run equilibrium between inflation and unemployment. Using the Vector Error Correction Model (VECM) analysis, the study found an insignificant inflation-unemployment relationship in the short-run. However, in the long-run, inflation is found to affect the unemployment rate positively. Our results from the Variance Decompositions (VDCs) analysis also supported these findings, where the unemployment responded at the more significant percentage to shocks in inflation compared to the response of inflation to shocks in unemployment. These findings only supported the relevance of the Phillips curve theory in the long-run. Overall, these findings imply that although inflation targeting policy is not relevant to the short-run, it becomes crucial and effective to reduce the unemployment rate in ASEAN-10 in the long-run.JEL Classifications: E52, E58, J64 How to Cite:Lisani, N., Masbar, R., & Silvia, V. (2020). Inflation-Unemployment Trade-Offs In Asean-10. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 241-256. https://doi.org/10.15408/sjie.v9i2.16346.

scholarly journals Relation between Labour Productivity and Export Competitiveness of Indian Textile Industry: Co-integration and Causality Approach

2019 ◽  
Vol 23 (1) ◽  
pp. 22-30 ◽  
Author(s):  
Rahul Dhiman ◽  
Manoj Sharma
Keyword(s):  
Textile Industry ◽  
Goodness Of Fit ◽  
Labour Productivity ◽  
Significant Variable ◽  
Causality Test ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Export Competitiveness ◽  
Short Run

The most important factor impacting the export competitiveness (EC) of an industry is productivity trends. One such significant variable of productivity can be labour productivity (LP). The purpose of this article is to examine the relationship between LP and EC for the Indian textile industry in the post-liberalization period, that is, from 1991 to 2015. The present study uses Johansen and Juselius test for examining the co-integration between select variables and reveals the long-run relationship between the select variables for Indian textile industry. The study uses Granger causality test to explain the direction of causation between the select variables for the analysis. The results of the present study show the absence of feedback effects among the variables, and only unidirectional causality is found. The result of the Vector Error Correction Model (VECM) reveals that there is no long-run or short-run causality running from independent variable to dependent variable. The diagnostic tests are performed, and the result indicates that the model has the property of goodness of fit. The study recommends that the productivity-based wages policy should be implemented by textile firms.

Enhancing Economic Growth and Government Revenue Generation in Nigeria: The Role of Diaspora Remittances

2021 ◽  
pp. 003464462110256
Author(s):  
Dal Didia ◽  
Suleiman Tahir
Keyword(s):  
Economic Growth ◽  
Parameter Estimates ◽  
Gross Domestic Product Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

Even though remittances constitute the second-largest source of foreign exchange for Nigeria, with a $24 billion inflow in 2018, its impact on economic growth remains unclear. This study, therefore, examined the short-run and long-run impact of remittances on the economic growth of Nigeria using the vector error correction model. Utilizing World Bank data covering 1990–2018, the empirical analysis revealed that remittances hurt economic growth in the short run while having no impact on economic growth in the long run. Our parameter estimates indicate that a 1% increase in remittances would result in a 0.9% decrease in the gross domestic product growth rate in the short run. One policy implication of this study is that Nigeria needs to devise policies and interventions that minimize the emigration of skilled professionals rather than depending on remittances that do not offset the losses to the economy due to brain drain.

scholarly journals Do Erratic Rainfalls Hamper Grain Production? Analysis of Supply Response of Rice to Price and Non-Price Factors

Agronomy ◽  
2021 ◽  
Vol 11 (8) ◽  
pp. 1463
Author(s):  
Ghulam Mustafa ◽  
Azhar Abbas ◽  
Bader Alhafi Alotaibi ◽  
Fahd O. Aldosri
Keyword(s):  
Unit Root Test ◽  
Rice Production ◽  
Vector Error Correction ◽  
Supply Response ◽  
Target Time ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
The Impact

Increasing rice production has become one of the ultimate goals for South Asian countries. The yield and area under rice production are also facing threats due to the consequences of climate change such as erratic rainfall and seasonal variation. Thus, the main aim of this work was to find out the supply response of rice in Malaysia in relation to both price and non-price factors. To achieve this target, time series analysis was conducted on data from 1970 to 2014 using cointegration, unit root test, and the vector error correction model. The results showed that the planted area and rainfall have a significant effect on rice production; however, the magnitude of the impact of rainfall is less conspicuous for off-season (season 2) rice as compared to main-season rice (season 1). The speed of adjustment from short-run to long-run for season-1 rice production is almost two-and-a-half years (five production seasons), while for season-2 production, it is only about one-and-a-half year (three production seasons). Consequently, the study findings imply the supply of water to be enhanced through better water infrastructure for both seasons. Moreover, the area under season 2 is continuously declining to the point where the government has to make sure that farmers are able to cultivate the same area for rice production by providing uninterrupted supply of critical inputs, particularly water, seed and fertilizers.

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>

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