Indexing Structural Distortion: Sectoral Productivity, Structural Change and Growth

Indexing Structural Distortion: Sectoral Productivity, Structural Change and Growth
Author: Sakai Ando
Publisher: International Monetary Fund
Total Pages: 48
Release: 2017-09-20
Genre: Business & Economics
ISBN: 1484320352

This paper proposes a new index of sectoral labor distortion using employment and valueadded shares. We show that this index is highly correlated with growth both crosssectionally and over time. We also use it to compare the degree of distortion among countries and identify sectors where the potential payoffs in terms of growth from reforms could be large. The regression analysis in the paper shows that education and various structural reforms have potential to improve the efficiency of sectoral labor allocation.

China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach

China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach
Author: Min Zhu
Publisher: International Monetary Fund
Total Pages: 46
Release: 2019-11-27
Genre: Business & Economics
ISBN: 1513515357

China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.

New Perspectives on Structural Change

New Perspectives on Structural Change
Author: Ludovico Alcorta
Publisher: Oxford University Press
Total Pages: 688
Release: 2021-03-23
Genre: Business & Economics
ISBN: 0192590375

New Perspectives on Structural Change is a comprehensive edited volume that outlines both the historical roots and state-of-the-art debates on the role of structural change in the process of economic development, including both orthodox and heterodox perspectives and contributions from prominent scholars in this field. The volume consists of four main sections. The first section covers the theoretical foundations of the structural change literature. The second section presents an empirical overview of the major trends of structural change, using up-to-date data sources and methods. The third section presents a broad ranging empirical analysis of the drivers of structural change. The fourth section examines how processes such as inclusive growth, poverty reduction, productive employment, the global income distribution, and environmental sustainability are affected by structural change, and how they can be influenced by policy.

Accelerated Land Reform, Mining, Growth, Unemployment and Inequality in South Africa

Accelerated Land Reform, Mining, Growth, Unemployment and Inequality in South Africa
Author: Nombulelo Gumata
Publisher: Springer Nature
Total Pages: 687
Release: 2020-01-03
Genre: Business & Economics
ISBN: 3030308847

The overarching goal of South Africa’s National Development Plan (NDP) is to eliminate poverty, reduce inequality, lower unemployment and increase the labour participation.This book contributes to academic and policy efforts to achieve these NDP goals. We establish that the coal, metal ores and the platinum group commodity sectors will underpin the mining as a “sunrise” industry. The export-led growth strategy is necessary for intensive employment creation but must be complemented by other micro, macroeconomic and industrial policies. A strategy of minerals beneficiation is important for intensive employment creation. Accelerated land reform is a supply side or structural reform policy intervention tool aimed at increasing potential output, changing ownership patterns in the economy, increasing entrepreneurship, labour absorption, economic inclusion and lowering income inequality. Evidence shows that the balance sheet channel, commodity price booms and busts are intricately linked with the exchange rate dynamics, policy uncertainty, confidence and the effects of droughts (also symptoms of climate change). Productivity and investment growth shocks matter for output, employment and price stability. Evidence indicates that nominal GDP growth above 10 percent and keeping inflation within the target band leads to significant increase in employment and decline in unemployment, without inflationary pressures, especially when inflation is below 4.5 percent. To operationalise the NDP targets, align and co-ordinate policies, the South African Reserve Bank (SARB) mandate can be expanded to include maximum employment. This must be complemented by lowering the inflation target band, adjusting the financial regulatory, macro-prudential and monetary policy frameworks. This will enhance the conduct and credibility of monetary and financial stability policies to achieve the set objectives. These objectives make policy co-ordination pertinent and binding.

International Journal of Academe and Industry Research

International Journal of Academe and Industry Research
Author:
Publisher: Institute of Industry and Academic Research Incorporated
Total Pages: 113
Release: 2022-09-30
Genre: Business & Economics
ISBN:

International Journal of Academe and Industry Research (IJAIR) is an open-access refereed journal focused on the two dimensions of business research: business education and applied industry research. The interconnectedness of the industry and academic institutions needs a platform that aligns their respective research needs. From the academic perspective, the business program management and the teaching and learning had been dramatically influenced by the industry trends and needs, collaborative approaches and internationalization. From there comes the indispensable role of the industry as they become partners to the academic institutions in producing quality workforce and entrepreneurs. Along these areas are the interesting topics for academic and industry researchers.

IMF Research Bulletin, Fall 2017

IMF Research Bulletin, Fall 2017
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
Total Pages: 15
Release: 2017-11-09
Genre: Business & Economics
ISBN: 1484327233

The Fall 2017 IMF Research Bulletin includes a Q&A article covering "Seven Questions on the Globalization of Farmland" by Christian Bogmans. The first research summary, by Manmohan Singh and Haobing Wang is "Central Bank Balance Sheet Policies: Some Policy Implications." The second research summary is "Leaning Against the Windy Bank Lending" by Giovanni Melina and Stefania Villa. A listing of new IMF Working Papers and Staff Discussion Notes is featured, as well as new titles from IMF Publications. Information on IMF Economic Review is also included.

Structural Reforms and Firms’ Productivity: Evidence from Developing Countries

Structural Reforms and Firms’ Productivity: Evidence from Developing Countries
Author: Wilfried A. Kouamé
Publisher: International Monetary Fund
Total Pages: 42
Release: 2018-03-19
Genre: Business & Economics
ISBN: 1484347005

This paper assesses the effects of structural reforms on firm-level productivity for 37 developing countries from 2006 to 2014 period. It takes advantage of the IMF Monitoring of Fund Arrangements dataset for reform indexes and the World Bank Enterprise Surveys for firm-level productivity. The paper highlights the following results. Structural reforms such as financial, fiscal, real sector, and trade reforms, significantly improve firm-level productivity. Interestingly, real sector reforms have the most sizeable effects on firm-level productivity. The relationship between structural reforms and firm-level productivity is nonlinear and shaped by some firms’ characteristics such as the financial access, the distortionary environment, and the size of firms. The pace of structural reforms matters since being a “strong reformer” is associated with a clear productivity dividend for firms. Finally, except for financial and trade reforms, all structural reforms under consideration are bilaterally complementary in improving firm-level productivity. These findings are robust to several sensitivity checks.

OECD Economic Survey of Costa Rica: Research Findings on Productivity

OECD Economic Survey of Costa Rica: Research Findings on Productivity
Author: OECD
Publisher: OECD Publishing
Total Pages: 152
Release: 2018-04-18
Genre:
ISBN: 9264298770

This volume collects four studies that were prepared as background research to the 2018 OECD Economic Survey of Costa Rica. Using firm-level, trade and sectorial data, these studies seek to provide insights into the trends in productivity and its determinants in Costa Rica. This volume ...

A Tale of Two Sectors

A Tale of Two Sectors
Author: Daniel A Dias
Publisher: International Monetary Fund
Total Pages: 50
Release: 2016-11-15
Genre: Business & Economics
ISBN: 1475554060

Recent empirical studies document that the level of resource misallocation in the service sector is significantly higher than in the manufacturing sector. We quantify the importance of this difference and study its sources. Conservative estimates for Portugal (2008) show that closing this gap, by reducing misallocation in the service sector to manufacturing levels, would boost aggregate gross output by around 12 percent and aggregate value added by around 31 percent. Differences in the effect and size of productivity shocks explain most of the gap in misallocation between manufacturing and services, while the remainder is explained by differences in firm productivity and age distribution. We interpret these results as stemming mainly from higher output price rigidity, greater labor adjustment costs and more informality in the service sector.

Making Globalization Work

Making Globalization Work
Author: Joseph E. Stiglitz
Publisher: W. W. Norton & Company
Total Pages: 401
Release: 2007-08-28
Genre: Business & Economics
ISBN: 0393330281

Nobel Prize winner Stiglitz focuses on policies that truly work and offers fresh, new thinking about the questions that shape the globalization debate.