scholarly journals HOW EFFECTIVE ARE LABOR WAGES ON LABOR PRODUCTIVITY?: AN EMPIRICAL INVESTIGATION ON THE CONSTRUCTION INDUSTRY OF NEW ZEALAND

2020 ◽  
Vol 26 (1) ◽  
pp. 258-270 ◽  
Author(s):  
Mustafa Ozturk ◽  
Serdar Durdyev ◽  
Osman Nuri Aras ◽  
Syuhaida Ismail ◽  
Nerija Banaitienė
Keyword(s):  
New Zealand ◽  
Labour Productivity ◽  
Construction Sector ◽  
Productivity Level ◽  
Model Stability ◽  
Normality Test ◽  
Long Run ◽  
Integration Test ◽  
Productive Labour ◽  
The Relationship

This study empirically investigates (for the period of 1983–2017) the relationships between the parameters (labour wage (LW), labour productivity (LP) and unemployment (UNM) rate) of the construction sector in New Zealand. This study employs the Johansen co-integration test to determine if the relationship in the long run does exist among the investigated variables as well as to assess the relationships. The results show that the LW has a positive effect on the LP, while the UNM affects negatively, which indicates that the higher salary, the more productive labour. In other words, increase in salary stimulates the belief of the workforce that they are substantially paid for their work, which ultimately increases their trust and loyalty to the employer; hence, productivity. Moreover, the results show adverse effect of UNM on LP, which indicates that labours may also lose his/her productivity due to fear of losing his/her job. The model stability is verified by Histogram Normality Test, Breusch-Godfrey Serial Correlation, Heteroscedasticity Breusch-Pagan-Godfrey tests. Thus, the forefront of the construction sector is recommended to consider the empirical relationships determined in this study in order to improve the productivity level at various levels.

scholarly journals COINTEGRATING RELATION BETWEEN EXCHANGE RATE AND GOLD PRICE

2017 ◽  
Vol 5 (10) ◽  
pp. 263-269
Author(s):  
Ranjusha ◽  
Devasia ◽  
Nandakumar
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Unit Root Test ◽  
Gold Price ◽  
Series Data ◽  
Annual Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Relationship

The very purpose of this paper is to analyse the relationship between gold price and Rupee – Dollar exchange rate in India. The study utilises the annual data of exchange Rate (ER) and Gold Price (GP) from 1970 to 2015 to determine the relationship. Different econometric tools like Unit root test, Johansen co integration test, Vector error correction model, Granger causality test are used for detecting the long run relation, if any between the mentioned variables. The result shows that there exists a long run cointegrating relation between the variables. That is we can stabilise the Gold Price movement by controlling the exchange rate fluctuations. Likewise it also shows that Exchange rate doesn’t Granger cause to Gold price and vice versa. It means that the time series data of one vasriable cannot be used to predict another.

scholarly journals Efficient Utilization of Resources in Manufacturing Firms

2013 ◽  
Vol 9 (3) ◽  
pp. 182-196
Author(s):  
Md. Shakil Ahmed ◽  
Mohammed Ziaul Haider
Keyword(s):  
Small Firms ◽  
Large Scale ◽  
Labour Force ◽  
Labour Productivity ◽  
Manufacturing Firms ◽  
West Region ◽  
Lower Productivity ◽  
Long Run ◽  
Productive Labour ◽  
Medium Firms

This study describes the optimality in resource utilization of the manufacturing firms in the south-west region of Bangladesh. A translog production function has been estimated to describe the input-output relationship. The large scale firms have the opportunity to substitute capital for labour for producing the same level of output. On the other hand, scarcity in capital leads to lower productivity of labour in medium and small firms. Therefore, an increase in capital may lead to an increase in labour productivity as well as output for these small and medium firms. The productive labour force may ensure proper utilization of the capital resources as well as the long run growth.

scholarly journals The Nexus Between Taxation, Government Expenditure and Economic Growth in South Africa. A fresh evidence from combined cointegration test

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Delani Moyo ◽  
Ahmed Samour ◽  
Turgut Tursoy
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Government Expenditure ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Integration Test ◽  
Lag Model ◽  
The Relationship

The relationship between taxation, government expenditure and economic growth. is a widely debated issue in the literature. The aim of this research is to present a fresh evidence from the nexus of taxation, government expenditure and economic growth in for the period 1991-2018 in South Africa, using recently developed combined co-integration test. Autoregressive Distributed Lag model(ARDL) is utilized to examine coefficients between the variables in the short and long-run The newly advanced Bayer-Hacks (BH) combined co-integration approach is employed so as to verify the ARDL bounds result. The empirical results from ARDL model revealed that there is a positive and significant relationship between government expenditure and economic growth in both short and long run. In addition, the study shows that tax revenue has a significant positive relationship with the economic growth. Therefore, levels of taxation and government expenditure are favorable to the growth of economy in South Africa. The research proposed that decision makers in South Africa should pay more attention on Taxation and government expenditure policies and the gains from economic growth such as channel much of its expenditure towards the manufacturing and agricultural sectors, which have great potentials of increasing the supply of the products. Which in turn leads to reduce prices and increase in the rates of employment. This would, also make the country’s exports prices competitive.

Investigating the interlinkages between infrastructure development, poverty and rural–urban income inequality

2017 ◽  
Vol 34 (4) ◽  
pp. 466-484 ◽  
Author(s):  
Varun Chotia ◽  
N.V.M. Rao
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Ordinary Least Squares ◽  
Infrastructure Development ◽  
Content Type ◽  
Long Run ◽  
Integration Test ◽  
Urban Income ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between infrastructure development, rural–urban income inequality and poverty for BRICS economies. Design/methodology/approach Pedroni’s panel co-integration test and panel dynamic ordinary least squares (PDOLS) have been used to carry out the analysis. Findings The empirical findings confirm a long-run relationship among infrastructure development, poverty and rural–urban inequality. The PDOLS results suggest that both infrastructure development and economic growth lead to poverty reduction in BRICS. However, rural–urban income inequality aggravates poverty in these nations. The paper advocates for adopting policies aimed at strengthening infrastructure and achieving economic growth to reduce the current levels of poverty prevailing in the BRICS nations. Originality/value Significant limitations exist in the literature in terms of not clearly defining the nature of relationship and interlinkages between infrastructure development, poverty and inequality, with regard to the BRICS nations. The available studies mainly focus on the relationship between infrastructure and growth, with the universal agreement being that these two are positively related. However, it is still not right to assume that economic growth attributable to infrastructure development will, therefore, subsequently lead to a reduction in inequality. This forms the basis for this study, that is, to critically examine the relationship between infrastructure development, inequality and poverty for BRICS nations.

scholarly journals Quest for a Valid Phillips Curve in the Long Run: An Empirical Approach

2017 ◽  
Vol 10 (4) ◽  
pp. 191
Author(s):  
Mohammed Saiful Islam ◽  
Riduanul Mustafa
Keyword(s):  
Phillips Curve ◽  
Consumer Price Index ◽  
Ordinary Least Squares ◽  
Monthly Data ◽  
Long Run ◽  
Integration Test ◽  
The Usa ◽  
Present Rate ◽  
Econometric Approach ◽  
The Relationship

This paper examines the relationship between inflation rate (percentage change in consumer price index) and unemployment rate (number of unemployed persons as a percentage of the labor force) by using modern econometric approach to find a “Phillips Curve”. Using US data of both monthly and yearly frequency, the paper    finds the existence of a long-run trade-off between inflation and unemployment. A linear form of the Phillips curve is estimated for the USA using ordinary least squares estimation (OLS). The co integration test shows the long run relation between the variables. This contradicts the theory that in long run the Phillips curve should be vertical. Some of the findings can be summarized as follows: (a) the Phillips Curve fits the data well; (b) inflation of previous year influences the present rate of inflation and (c) both monthly data and yearly data support the existence of Phillips curve in the long run

The Dynamic Relationship between Export, Import and Inflation: Empirical Evidence from India

2018 ◽  
Vol 66 (3-4) ◽  
pp. 294-311
Author(s):  
Malayaranjan Sahoo ◽  
Narayan Sethi
Keyword(s):  
Impulse Response Function ◽  
Decomposition Analysis ◽  
Dynamic Relationship ◽  
Long Run ◽  
Integration Test ◽  
Causality Tests ◽  
Competitive Prices ◽  
Variance Decomposition Analysis ◽  
The Government ◽  
The Relationship

This article aims to examine the relationship between inflation, export, import and foreign direct investment (FDI) in India from1975 to 2017. The study employed Johansen co-integration test to find out the long-run relationship among the variables and further variance decomposition analysis (VDA) and impulse response function (IRF) through vector autoregression (VAR) used to find out the dynamic relationship. Both VDA and IRF results indicate that export has positive or greater influence in inflation in India than other variables like import and FDI. The pair-wise granger causality approach finds that there is unidirectional causality running between exports and inflation and not vice versa, whereas inflation granger causes import. Toda Yamamoto causality also has shown similar result. Both the causality tests revealed that no causal relationships exist between inflation and FDI in India during the study period. As the exports of India have been continuously declining for past few years, the outcomes of this study are the true depiction of India’s economic situation. So, the government should provide a competitive environment and incentives to the local industry to produce at competitive prices to the international market.

Financial development and income inequality in India: an application of ARDL approach

2015 ◽  
Vol 42 (1) ◽  
pp. 64-81 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri
Keyword(s):  
Income Inequality ◽  
Financial Development ◽  
Trade Openness ◽  
Development Economic ◽  
Annual Data ◽  
Content Type ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between financial development and income inequality in India using annual data from 1982-2012. Design/methodology/approach – Stationarity properties of the series are checked by using ADF, DF-GLS, KPSS and Ng- Perron unit root tests. The paper applied the auto regressive distributed lag (ARDL) bound testing approach to co-integration to examine the existence of long run relationship; and error correction mechanism for the short run dynamics. Findings – The co-integration test confirms a long run relationship between financial development and income inequality for India. The ARDL test results suggest that financial development, economic growth, inflation aggravates the income inequality in both long run and short run. However, trade openness reduces the gap between rich and poor in India. Research limitations/implications – The present recommend for appropriate economic and financial reforms focussing on financial inclusion to reduce income inequality in India. Originality/value – Till date, there is hardly any study that makes a clear comparison between market-based indicator and bank based indicator of financial development in India and those examining the relationship between finance and income inequality nexus. Further there is hardly any study to include gini coefficient as a proxy for inequality for India and apply ARDL techniques of co-integration, using the basic principles of GJ hypothesis and provide short run and long run dynamics for India. So the contribution of the paper is to fill these research gaps.

scholarly journals SMEs Formal Funding, a Lubricant for Economic Performance: The Nigerian Experience

2020 ◽  
pp. 1-10
Author(s):  
S. Sunday, Ogunbiyi ◽  
O. Chinyere, Onita
Keyword(s):  
Economic Performance ◽  
Unit Root ◽  
Small And Medium Enterprises ◽  
Unit Root Test ◽  
Secondary Data ◽  
Long Run ◽  
Integration Test ◽  
Auto Regressive ◽  
Medium Enterprises ◽  
The Relationship

This study examined the relationship between Small and medium scale enterprises formal sources of funding and economic performance of Nigeria, for the period 1992 to 2018. We adopted secondary data that were sourced from the central bank of Nigeria statistical bulletin. We conducted unit root test, Bound co-integration test and auto regressive distributive lag tests. The tests revealed that, in the long run, Microfinance Banks credit is statistically significant in promoting economic performance of Nigeria. While, Bank of Agriculture credit and bank of industry credit were found not to be statistically significant in promoting Nigeria’s economic performance. However, jointly, credits from the banks studied have a positive relationship with the performance of Nigeria’s economy as represented by the GDP. The study therefore recommends that, access to microfinance credit by SMEs should be sustained, while the relevant agencies should work to improve the relationship between credits by Banks of Agriculture and Industry to Small and Medium Enterprises. 

scholarly journals The education investment dimension of international personal remittances in Colombia

2015 ◽  
Vol 4 (4) ◽  
pp. 428-436
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Time Series Data ◽  
Empirical Studies ◽  
Series Data ◽  
International Remittances ◽  
Long Run ◽  
Integration Test ◽  
Enrolment Ratio ◽  
Capital Development ◽  
Integrated Or ◽  
The Relationship

The study investigated the relationship between personal international remittances received and gross enrolment ratio in Colombia. There are three hypotheses explaining the relationship between personal international remittances and education (human capital development). These are (1) remittances-led education hypothesis, (2) education-led remittances hypothesis and (3) neutrality hypothesis that says there is no relationship at all between these two variables. Although majority of the empirical studies support the remittances-led education hypothesis, the subject is still attracting contradicting findings and not yet conclusive. It is on the backdrop of such lack of consensus in the literature that the author investigated the relationship between personal remittances received and gross enrolment ratio primary and secondary (%) in Colombia. The study used the auto-regressive distributive lag (ARDL) bounds co-integration testing technique with annual time series data ranging between 1978 and 2010 to determine the existence of a long run relationship between personal remittances and education in Colombia. The ARDL F-bounds co-integration test revealed that personal remittances received and gross enrolment ratio for both primary and secondary schools in Colombia are not co-integrated or they do not have any long run relationship, thus supporting the neutrality hypothesis. This conclusion was arrived at using either personal remittances or gross enrolment ratio as a dependent variable. These results imply that personal remittances received in Colombia were directed more towards consumption and not invested in education. The study therefore urges the Colombian authorities to concientise the recipients of the personal remittances to invest in the children’s education rather than spending the remittances on consumption purposes

scholarly journals Co-Integration between Stock Prices and Exchange Rate of Selected SAARC Countries: An Empirical Study

2016 ◽  
Vol 3 (1) ◽  
pp. 82
Author(s):  
Sumaira Channa ◽  
Pervaiz Ahmed Memon ◽  
Muhammad Ramzan Kalhoro
Keyword(s):  
Exchange Rates ◽  
Stock Prices ◽  
Stock Price ◽  
Policy Implications ◽  
Feedback Effects ◽  
Long Run ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
The Relationship

This study examines the relationship between stock prices and exchange rates of three selected SAARC countries including Pakistan, India and Srilanka; using monthly data from period of January 1999 to December 2015. This study employs statistical techniques of Augmented Dickey Fuller (ADF), Phillips Perron (PP), unit root tests, and Johansen’s Co-integration test to determine long run equilibrium association ship between stock price indices and exchange rates. The study finds out no Co-integration between the two variables, hence no long run association is existing between them. This finding implies that investors in these markets are having more opportunities for diversifying their portfolios. However, using Granger Causality and impulse response tests, it finds significant short-run feedback effects, as stock prices Granger cause exchange rates in case of Pakistan and unidirectional causality flows from exchange rates to stock prices in case of Srilanka but no proof of causality running in either direction in case of India. Hence the findings for Pakistan and Srilanka have crucial policy implications.

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