scholarly journals The Relationship between Labor Productivity and Economic Growth in OECD Countries

2017 ◽  
Vol 9 (5) ◽  
pp. 71 ◽  
Author(s):  
Suna Korkmaz ◽  
Oya Korkmaz
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Labor Productivity ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Oecd Countries ◽  
Factor Productivity ◽  
The Developed Countries ◽  
Partial Factor Productivity ◽  
The Relationship

In the course of globalization, the countries entered into an intense competition between each other. In order to achieve the competitive advantage, countries pay significant importance to the technological advancements. By improving the productivity, the technological innovations and developments allow the countries to make production at lower costs. The increase in factor productivities would enable higher levels of output in the economy. Since the factor productivity influences many other factors and the developed countries meet these criteria better than developing countries do, the factor productivities are higher in developed countries, when compared to those in developing countries. For this reason, in this study, the relationship between labor productivity, which is a partial factor productivity, and economic growth in seven OECD countries for the period between 2008 and 2014 by utilizing the panel data analysis method. According to the test results, we find a unidirectional causality relationship from economic growth to labor productivity.

scholarly journals Taxing impact of terrorism on global economic openness of developed and developing countries

2018 ◽  
Vol 68 (3) ◽  
pp. 311-335
Author(s):  
Abubakr Saeed ◽  
Yuhua Ding ◽  
Shawkat Hammoudeh ◽  
Ishtiaq Ahmad
Keyword(s):  
Developing Countries ◽  
Negative Impact ◽  
Developed Countries ◽  
Terrorist Attacks ◽  
Economic Openness ◽  
Significant Negative Impact ◽  
Military Expenditures ◽  
The Developed Countries ◽  
The Impact ◽  
The Relationship

This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.

scholarly journals The Relationship Between Public Expenditures, Total Factor Productivity and Economic Growth: A Panel Data Analysis

2021 ◽  
Author(s):  
Remzi Can Yılmaz ◽  
Ahmet Rutkay Ardoğan
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Statistical Significance ◽  
Data Availability ◽  
Public Expenditures ◽  
Annual Data ◽  
Factor Productivity ◽  
The Relationship

According to the economics literature, there are two main sources of economic growth. While the first of the resources is the accumulation of production factors, the other is the part of the output that cannot be explained by the amount of input used in production, in other words, the total factor productivity. The level of total factor productivity is measured according to how efficiently the inputs are used in the production process. In this study, the hypothesis that public spending affects real economic growth through total productivity is investigated. In the first stage, whether the changes in public expenditures affect the total factor productivity or not; if it does, to what extent and in what direction it has been tried to be revealed. In the second stage, the effect of total factor productivity on economic growth was examined and the statistical significance, direction and extent of the relationship between variables were investigated. Annual data were used in the study and the year range is 2000-2017. The sampling economies were selected according to data availability, and there are a total of 20 developed and developing economies. Research was conducted using multiple panel regression analysis. According to the findings, the relationship between public expenditures and total factor productivity is statistically significant. An increase in public expenditures reduces the total factor productivity. The relationship between total factor productivity and economic growth is statistically significant, and an increase in total factor productivity also increases economic growth. An increase in public expenditures affects economic growth negatively by reducing the total factor productivity.

Global Trends in Domestic savings and Longevity- Implications for India

2021 ◽  
pp. 111-118
Author(s):  
Thilak Venkatesan ◽  
Venkataraman R
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
The Other ◽  
Demographic Dividend ◽  
Policy Action ◽  
Global Trends ◽  
Domestic Savings ◽  
The Developed Countries ◽  
Developed Nations ◽  
The Relationship

Demographic dividend and the lowest median age among the earning population propels consumption and growth in India. Among the emerging economies, China had the leverage for growth through exports until 2008. India benefited by demographic dividend and this translates to providing income and thereby increases savings. On the other hand, the developed countries are experiencing problems of an aging economy, a deflationary scenario, and a pension burden. India, with its major workforce in the unorganized and private sector, needs to recognize the need for forward-looking policies that stimulate savings for a better lifestyle post-retirement. The study was focussed on the relationship between longevity (life expectancy), and domestic savings. The research observed divergence between the developed nations and India. A more futuristic policy action is suggested to motivate savings as the increase in population and higher levels of economic growth can be achieved with more domestic savings.

scholarly journals Income Inequality and Economic Growth: An Analysis Using a Panel Data

2018 ◽  
Vol 10 (5) ◽  
pp. 242
Author(s):  
Mohamed Bouincha ◽  
Mohamed Karim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Developed Countries ◽  
Global Model ◽  
Kuznets Curve ◽  
Main Indicator ◽  
Development Indicator ◽  
Long Time ◽  
The Developed Countries ◽  
The Relationship

A long time ago, economic growth was the main indicator of countries’ economic health. However, since the 1970s, the analysis of the relationship between economic growth and other economic phenomena such as inequality has begun to grow (Sundrum, 1974). Much of the literature on the link between economic growth and income inequality is based on Kuznets revolutionary theory. The purpose of our article is to suspect the causality relationship between growth and inequality. To do this, we used data from 189 countries for the period between 1990 and 2015. We estimated a global model and three other of each category of countries in terms of development. In the global model, economic growth is insignificant even if its sign is positive. The same result appears in the developing country model and the moderately developed countries one. However, in the developed countries model, economic growth is negatively and statistically related to inequality. The Kuznets curve is approved in our study only when using human development indicator in the place of growth. Growth explain inequality’s movement in our study only in the model of developed countries and its coefficient is negative.

New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD

2012 ◽  
Vol 12 (3) ◽  
pp. 1850263 ◽  
Author(s):  
Ekrem Erdem ◽  
Can Tansel Tugcu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Economic Freedom ◽  
Global Financial Crisis ◽  
Oecd Countries ◽  
Cointegration Analysis ◽  
Factor Productivity ◽  
The Impact ◽  
The Relationship

The aim of this paper is to find a new answer to an old question “Is economic freedom good or not for economies?” which was refreshed after the Global Financial Crisis of 2008. For this purpose, the relationship between economic freedom and economic growth, and the relationship between economic freedom and total factor productivity in OECD countries were investigated by using panel data for the period of 1995-2009. Study employed the recently developed cointegration test by Westerlund (2007) and the estimation technique by Bai and Kao (2006) which account for cross-sectional dependence that is an important problem in the panel data studies. Although no significant relationship found between economic freedom and total factor productivity, cointegration analysis revealed that economic freedom matters for economic growth in OECD countries in the long-run, and estimation results showed that direction of the impact is negative.

scholarly journals The Effects of Research and Development (R&D) Investments on Sustainable Economic Growth: Evidence from OECD Countries (1996-2015)

2018 ◽  
Vol 18 (1) ◽  
pp. 3-23 ◽  
Author(s):  
Şekip Yazgan ◽  
Ömer Yalçinkaya
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Oecd Countries ◽  
Income Level ◽  
Factor Productivity ◽  
Income Levels ◽  
Growth Performances ◽  
Average Factor ◽  
Sustainable Economic Growth ◽  
D Investment

AbstractThis study is devoted to the empirical analysis by second generation panel data analysis of the effects of the R&D investment variables in different qualifications in OECD countries grouped as OECD-20 and OECD-9 based on the income levels of the economic growth for the period of 1996-2015. Within this context, the purpose of this study is to evaluate whether or not the economic growth performances of OECD-20 and OECD-9 countries have a sustainable structure that endogenizes the technological advancements and occurs by the increments in average factor productivity. At the end of the paper it is determined that all the R&D variables in different qualifications of the OECD-20 group have a higher income level in sample period and have positive and statistically significant effects on the economic growth. On the other hand, only the private sector, universities and the total R&D investments have positive and statistically significant effects on the economic growth of the OECD-9 group which has comparatively lower income level. However, it is specified that the size of the positive and statistically significant effects of the R&D investment variables in different qualifications is more than two times bigger in the OECD-20 group as opposed to the OECD-9 group. These results reveal that the economic performances of OECD-20 countries in the investigated period have a more substantial relation with the qualified and sustainable structure that endogenizes the technologic advancements and occurs by the increments in average factor productivity. All of this shows that the R&D investments also are substantially sufficient to change the long-term economic growth performances and income levels of the countries in OECD-20 and OECD-9 groups.

Impact of Trade Openness on Economic Growth in Emerging Economies: A Panel Data Analysis

2021 ◽  
Vol 9 (2) ◽  
pp. 210-216
Author(s):  
Muhammad Atiq Ur Rehman ◽  
Ruqia Shaheen ◽  
Farzana Munir
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Emerging Economies ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Export Promotion ◽  
Promotion Strategies

The role of international trade in boosting economic growth is imperative in the era of globalization and trade liberalization. A trade openness policy can help stimulate economic growth mainly in two ways. Firstly, technology is transferred from developed countries to developing countries through imports. Secondly, the export promotion strategies facilitate the innovations and inventions promoting competition among the producers. In this way, research-intensive specialization culture is flourished in developing countries. This study aims at examining the effect of global trade orientation on growth in 23 emerging economies for the period 1995-2018. The panel data estimation approach including fixed effect and generalized method of moments (GMM) reveal a positive and statistically significant influence of trade openness on economic growth.  The empirical results are robust to the various specifications, supporting the trade-led growth notion in the economies under consideration. The emerging economies can achieve higher growth rates through trade openness and export promotion strategies.

scholarly journals Les effets sur l’emploi des échanges de produits manufacturés entre pays développés et pays en développement

2005 ◽  
Vol 18 (2) ◽  
pp. 285-304
Author(s):  
Bela Balassa
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Indirect Effects ◽  
Developed Countries ◽  
Employment Creation ◽  
Pays En Développement ◽  
Manufactured Goods ◽  
Small Decline ◽  
The Developed Countries ◽  
Pays En Developpement

This paper examines prospective changes in employment associated with the expected expansion of trade in manufactured goods between the developed and developing countries over the next decade. It appears that, on balance, the developed countries would experience net employment creation as a result of this trade, and there would be only relatively small decline of employment in their import-substituting industries. In turn, the developing countries would gain employment through increased export that would further contribute to their economic growth, with favorable indirect effects on employment.

scholarly journals The Determinants of Labor Productivity: Analyses on Chosen Countries (1960-2010)

2016 ◽  
Author(s):  
Murat Nişancı ◽  
Aslı Cansın Doker ◽  
Adem Türkmen ◽  
Ömer Selçuk Emsen
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Labor Productivity ◽  
Panel Data Analysis ◽  
Physical Capital ◽  
Developed Countries ◽  
Learning By Doing ◽  
Marginal Productivity ◽  
Growth Trend ◽  
Economic Productivity

Discussions on economic productivity, in micro analysis aspects there is direct causal relationship between increases or decreases in the production and productivity, whereas it can be said that productivity is based on economic recession or growth in macro analysis aspects. In the literature, while Classical theoreticians is attributed that the source of growth is the marginal productivity of capital, neoclassic school claims that marginal productivity difference provide benefit the country from behind for realization of the convergence hypothesis. Furthermore, increasing efficiency and as the factors this increase efficiency human capital, learning by doing concepts and technology are focused in the endogenous growth theories. In this study, human capital, physical capital per worker, exports per worker, gender differences, fertility, life expectancy and dependent population ratio were determined as determinants of labor productivity. In respect to labor productivity, variables are divided to three main groups in order to economic demographic and social and psychological factors. The variables are placed with taking five years average due to the fact that those variables’ effects reveal themselves more clearly in the long term. In the paper, it was investigated by panel data analysis considering groups of developed and developing countries between 1960 and 2010 period. In this context the degree of efficiency may well be discussed with parameters of selected variables for productivity of labor. Additionally, within framework of descriptive statistics the differences and similarities between countries were interpreted for political recommendations to developing countries how to increase productivity for catching developed countries’ growth trend.

scholarly journals Digital transformation, development and productivity in developing countries: is artificial intelligence a curse or a blessing?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heidi Aly
Keyword(s):  
Artificial Intelligence ◽  
Developing Countries ◽  
Economic Development ◽  
Labor Productivity ◽  
Developed Countries ◽  
Digital Transformation ◽  
Future Research ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The entire world is now witnessing the Fourth Industrial Revolution and Artificial Intelligence (AI) is indeed altering the lives of the many in both developing and developed countries. Massive digital transformations are affecting the economies of those countries and are bringing with them many promised merits, as well as many challenges to face. This paper aims to examine the relationship between digital transformation (as a one facet of the fourth revolution and AI trends) on one side, and economic development, labor productivity and employment on the other side. Design/methodology/approach The paper analyzes different indices of digital transformation, and then uses the Digital Evolution Index (DEI) to study those relationships in a group of developing countries using feasible generalized least squares method (FGLS). Findings The results show a positive relationship between the digital transformation index and economic development, labor productivity and job employment. Females seem to gain more from digital transformation compared to males, as suggested by the positive relation with the first and the insignificant relation with the latter. The relationship with vulnerable employment is not significant; more evidence is still needed to judge whether digital transformation will have an impact upon the vulnerable employees in the economy. Research limitations/implications The paper focused on the impact of digital transformation upon total aggregate employment. Future research is still needed to examine the impact upon the structure of the labor market and the shift of occupations. Originality/value The paper aims to add to in the literature regarding the relationship between digital transformation, economic development, employment and productivity in the developing world. The implications of those relationships are of significant importance to policymakers regarding how much support should be given to encourage the digital transformation. At the same time, it shall also indicate how much social support policies are required – if any – to lessen the negative impact of digital transformation on the vulnerable groups inside the country. Another contribution is using a single composite index for digital transformation that is comparable across the chosen set of developing countries, instead of using single indices each capturing a different dimension of digital transformation.

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