EFFECTS OF DEMOGRAPHIC STRUCTURE IN GROWTH ACCOUNTING AND LABOUR MARKET DECOMPOSITIONS

Impact of demographic structure on labor market and macroeconomic aggregates might be pronounced in some countries. Despite this fact, only a handful of approaches dealing with quantifications such effects have been derived so far. The aim of this paper is therefore to fill this methodological gap and to introduce methodological approaches for capturing changes in demographic structure, with many applications in growth accounting and labor market decompositions. Firstly, a novel additive decomposition will be presented, as an alternative to traditional models using fixed population weights. This will be followed by the presentation of a multiplicative decomposition, which can be applied to all kinds of growth accounting exercises based on multiplicative identities.

Trends in Productivity Growth of Indian Pharmaceutical Industry: A Growth Accounting Analysis

The pharmaceutical industry of India is one of the most rapidly expanding research-based industries of Indian manufacturing. This paper attempts to examine the trends in partial and total factor productivity (TFP) growth of India’s pharmaceutical industry using industry-level time series data covering a period of 25 years from 1993-94 to 2017-18, which is further divided into pre-product and post-product patent periods. Three alternative indices of growth accounting approach viz., Translog, Solow, and Kendrick have been used to measure the growth of total factor productivity with four input production framework. The study results indicate significant increasing trends in capital intensity as well as labour, energy and material productivity and a significant declining trend in capital productivity over the entire study period. This study also finds a positive turnaround in the TFP growth of Indian’s pharmaceutical industry during the post-product patent era. The decomposition analysis confirms that output growth in the pharmaceutical industry is input-driven rather than productivity-driven as TFP growth contributes only 8.5 percent to the observed output growth. From the policy standpoint, this paper also suggests greater emphasis on resource efficiency by improving the quality of factor inputs, particularly capital, through increased R&D activities and adoption of cutting-edge technology.

Substitution between production factors and intermediate inputs in the light of KLEMS growth accounting for Poland

The generally adopted view is that the gross-output-based MFP is the most correct in terms of methodology, and the value-added-based MFP is its imperfect substitute performed when some data are missing. In this paper, however, performing both of them and comparing their results is proposed as a valuable means to studying the development of outsourcing in the economy. The paper presents the elaboration of the methodology for the latter, which is its main contribution to the field. The case of the Polish economy is used as an applicative example (covering the period between 2005 and 2016), as KLEMS growth accounting has recently been implemented in Poland. The results demonstrate that around the year 2011, the expansion of outsourcing ceased. Since outsourcing was one of the main processes of the Polish transition, this observation can be considered as an indication of the maturing of the market economy in Poland. Moreover, KLEMS growth accounting makes it possible to study this issue through NACE activities, i.e. at the industry level. It shows that manufacturing (section C of NACE) is predominantly responsible for the situation described above, which is the main empirical finding of the study. The dominant role of manufacturing is also confirmed by some other sectoral observations of lesser importance. The methodology developed in this paper can potentially be applied to other countries for which both kinds of MFP are performed.

Evaluation de la contribution de l’irrigation à la croissance économique et agricole : cas du Maroc

Situé dans une zone géographique où les ressources hydriques sont limitées, le Maroc a multiplié les efforts pour gérer ses ressources en eau. Ces efforts se sont concrétisés à travers l’amélioration continue du cadre législatif régissant le secteur de l’eau et s’adaptant aux nouvelles contraintes qu’elles soient climatiques, technologiques et/ou économiques. Dans ce sens, ce travail vise l’évaluation de l’impact de ces interventions publiques sur la croissance agricole et économique observées. La démarche méthodologique adoptée se base sur la méthode de comptabilité de croissance ou « Growth Accounting », développée par Solow en 1957. Elle permet de décomposer la croissance en contribution des facteurs et celle de la productivité. Les résultats de cette étude confirment le rôle primordial que joue l’agriculture en tant que moteur de croissance de l’économie marocaine. Ils montrent également que la contribution de l’eau à la croissance de la valeur ajoutée agricole est de l’ordre de 2% et qu’elle demeure tributaire des conditions climatiques, qui à leur tour changent sous l’effet du réchauffement climatique. Located in a geographical area with limited water resources, Morocco has multiplied its efforts to manage its water resources. These efforts have been materialized through the continuous improvement of the legislative framework governing the water sector and adapting to the new constraints whether they are climatic, technological and/or economic. In this sense, this work aims at evaluating the impact of these public interventions on the observed agricultural and economic growth. The methodological approach adopted is based on the growth accounting method developed by Solow in 1957. It allows for the decomposition of growth into factor contributions and productivity contributions. The results of this study confirm the primary role played by agriculture as an engine of growth in the Moroccan economy. They also show that the contribution of water to the growth of agricultural value added is around 2% and that it remains dependent on climatic conditions which are changing under global warming.

Indirect Estimation of the Development of Capital Productivity in the Regions: The Case of Poland

This study introduces a new (adopted) method of indirect estimation of the development of the productivity structure in the regions, which at the same time allows estimation of the contribution resulting from changes within the capital factor. Its theoretical background is built on the principles of growth accounting. Within this framework the study employs an arguable assumption of analogy in development of multifactor productivity of industry between the national and regional level. The literature review and empirical results shows, however, that such an assumption may be correct in some cases. Therefore, the article enhances the existing productivity analysis capabilities at the regional level. Within the aim, this study verifies the potential of applicability of proposed method on the regions of Poland. It uses the measure of symmetric mean absolute percentage error (SMAPE) to evaluate the accuracy of method proposed against actual values and the results of two other frequently used methods for disaggregation of capital among the regions in a country. The results indicate that the new method should be more accurate than the methods of regional decomposition of capital-based on value added, and flows investment accumulation. In fact, it seems to be quite correct especially in the industries of wholesale & retail trade, transport & storage, real estates, health & social work, and manufacturing. On the other hand, it is likely incorrect in the industries of information & communication activities, finance & insurance, and administrative & support activities. In general, the method seems to be more accurate for larger industries and vice versa. Higher precision is also observed for industries where capital demand is clearly increasing. Similarly, the method is more accurate in industries where none of the regions are more specialized and vice versa.

ANTAGONISTIC ACTIVITY OF FUNGAL AND BACTERIAL BIO-INOCULANTS AGAINST SCLEROTIUM ROLFSII

The present studies were undertaken to investigate the effect of fungal and bacterial biocontrol agents against stem rot of groundnut. The result of the dual culture technique indicated that Trichoderma isolates inhibited the growth of S. rolfsii. Among the isolate T. viride (Tv1 ) produced maximum reduction of mycelial growth. This was followed by the isolates T. harziaum and T. virens which restricted the mycelial growth when compared to control. Among the isolates T. viride (Tv1 ) at a conc. of 10, 20, 30 and 40 per cent conc. showed an increase in the inhibition of the mycelia growth recording 22.15, 15.27, 8.75 and 0.00 mm respectively. The next best in antagonist was T. harzianum. Among the Pseudomonas fluorescens isolates, PfI3 produced maximum reduction of mycelial growth accounting for 74.97 per cent reduction over control. Also, a general increase in the conc. of the Antagonistic culture filtrate showed an increase in the inhibition of the mycelial growth of the test pathogen.