Browsing by Subject "Structural change"

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Decomposing a decomposition : within-country differences and the role of structural change in productivity growth
(2019) Mühlen, Henning; Escobar, Octavio
In this article, we investigate the relevance of structural change in country wide productivity growth considering within-country differences. For this purpose, we propose a two-step decomposition approach that accounts for differences among subnational units. To highlight the relevance of our procedure compared to the prevalent approach in the existing development literature (which usually neglects subnational differences), we show an application with data for the Mexican economy. Specifically, we contrast findings obtained from country-sector data on the one hand with those obtained from (more disaggregated) state-sector data on the other hand. One main insight is that the qualitative and quantitative results differ substantially between the two approaches. Our procedure reveals that structural change appeared to be growth-reducing during the period from 2005 to 2016. We show that this negative effect is driven mainly by the reallocation of (low-skilled) labor within subnational units.
Outlier detection in structural time series models : the indicator saturation approach
(2014) Proietti, Tommaso; Marczak, Martyna
Structural change affects the estimation of economic signals, like the underlying growth rate or the seasonally adjusted series. An important issue, which has attracted a great deal of attention also in the seasonal adjustment literature, is its detection by an expert procedure. The general–to–specific approach to the detection of structural change, currently implemented in Autometrics via indicator saturation, has proven to be both practical and effective in the context of stationary dynamic regression models and unit–root autoregressions. By focusing on impulse– and step–indicator saturation, we investigate via Monte Carlo simulations how this approach performs for detecting additive outliers and level shifts in the analysis of nonstationary seasonal time series. The reference model is the basic structural model, featuring a local linear trend, possibly integrated of order two, stochastic seasonality and a stationary component. Further, we apply both kinds of indicator saturation to detect additive outliers and level shifts in the industrial production series in five European countries.
Structural shift and increasing variety in Korea, 1960–2010 : empirical evidence of the economic development model by the creation of new sectors
(2016) Kim, Tai-Yoo; Pyka, Andreas; Yeon, Jung-In
In this paper, we examine the experiences of the Korean economy alongside theoretical knowledge of economic development and structural change. To demonstrate the generalized hypotheses on structural change, input–output tables of Korea, from 1960 to 2010, were analyzed. Our interest in taking time series of input–output tables originates from the following two issues. Firstly, we raise the question of whether Korean industrial structure changes have followed a certain pattern of structural shifts as well as increasing variety. Secondly, if so, it is questioned how the meso-level conditions for economic development could be explained from such a pattern. To search for answers, we adopt a model of the economic development by the creation of new sectors, named TEVECON, as our theoretical framework. Using this growth model, we derive hypotheses about how the structural change could affect economic development, and then we determine how the empirical analysis of the Korean economy verifies and deepens our understanding of structural change and economic development. This paper contributes to the empirical validation of the theoretical knowledge of economic development by the emergence of key sectors and the creation of new industries.
The role of FDI in structural change : evidence from Mexico
(2018) Mühlen, Henning; Escobar, Octavio
Foreign direct investment (FDI)flows to Mexico are substantial and play an important role in the Mexican economy since the mid-1990s. These investments reflect the activities of multinational firms that shape to some extent the economic landscape and sectoral structure in this host country. We illustrate that there is considerable variation in the amounts of FDI and structural change within the country and across time. Based on this, the papers main purpose is to analyze whether there is a significant impact of FDI on structural change. We conduct an empirical analysis covering the period 2006-2016. We use the fixed-effects estimator where the unit of observation is a Mexican state for which we calculate structural change from the reallocation of labor between sectors. The results suggest that (if any) there is a positive effect from FDI on growth-enhancing structural change. This effect depends critically on the lag structure of FDI. Moreover, there is some evidence that the positive effect (i) arises from FDI flows in the industry sector and (ii) is present for medium- and low-skilled labor reallocation.
Tourism as a driver of economic development - the Colombian experience
(2008) Benković, Andreja; Meija, Juan Felipe
The current paper analyzes the importance and potentials of the tourism sector for economic development. It is divided into four major parts. After a short introduction, section two presents some theoretical insights into the topic of economic development. Commenting on the most relevant components of the catching-up theory by Abramovitz (1986) and the structural change theory by Baumol (1967) and others, it could be realized that growth and the accompanying structural changes in the distribution of employment and GDP have their sources in the sector industry. But at the moment of incorporating the demand side explanation of structural change, the service sectors offer growth potentials as well. Furthermore, the basic characteristics and importance of the tourism sector for economic development and employment are emphasized, examining the so-called ?social capabilities? and the innovation potential within the process of economic growth of any nation. A short survey of literature concerning the contribution of this sector to economic growth makes clear that tourism should be considered not just from the perspective of the benefits, but also from the costs associated with it. Section three provides an analysis of the economic impact of tourism in a developing country, namely Colombia, based on time-series analysis and data gathered supported on the ?Tourism Satellite Account? Methodology. Some relevant indicators produced by the World Economic Forum through its ?Travel and Tourism Competitiveness Report?, are also evaluated. Finally, some conclusions are drawn with respect to the potentialities, as well as the challenges identified for the Colombian case.
Wandel des Unternehmertums in der Landwirtschaft
(2016) Gindele, Nicola; Doluschitz, Reiner
The starting point for this cumulative thesis is the continuously advancing structural shift in agriculture and its upstream and downstream sectors. The first section of the thesis discusses the challenges faced by agriculture as a result of structural and demographic change. The thesis focuses on the shift in entrepreneurship in agriculture. It analyses to what extent there is a shift and the consequences that it has for the managers of agricultural businesses. Its impact on the availability of qualified agricultural workers is assessed in relation to the demographic change in the population. The studies reveal a strong dependence between business success and the ability of a farmer to act in an entrepreneurial manner, among other things caused by advancing structural change and increasingly liberalised agricultural markets. At the same time the farm managers remit is changing in line with economic growth and technical advances. Organisational and managerial tasks are growing in importance, while practical, hand-on tasks are relatively declining. The demands on farm managers increase as farms grow, greater technology is used and farms tend to specialise, and the requirements governing the qualification of permanently employed external workers also become stricter. It becomes clear that there are differences specific to particular regions and between individual farms when it comes to the professional qualifications of workers. In terms of the search for workers, there are particular problems today relating to the recruitment of specialist employees, while workers for simple auxiliary tasks are easier to find. Against the background of an emerging skills shortage, farm managers are called upon to analyse more closely their own management style and personnel management tools, such as non-material incentive systems, to offer their employees an attractive and pleasant long-term working environment. The second part of the thesis examines the challenges for rural cooperatives emanating from the structural change in agriculture. Cooperatives are the proven partners of agriculture, both in terms of the provision of equipment and the concentration and marketing of agricultural products, as well as the related improved market positioning of farmers. The thesis examines member management, in particular member retention, using the example of purchasing and sales cooperatives, as well as fruit and wine cooperatives, as there has been a sharp decrease in the number of members of the affected cooperatives in recent years. Strategies to improve the market position of rural cooperatives are also outlined. The rural cooperatives need to adopt an end-to-end well thought-out customer relationship management approach to counteract steadily falling numbers of members. Communication with members plays a key role in this. End-to-end and continuous communication with members improves the exchange of information and knowledge, encourages members to participate to a greater extent in the self-government of the cooperative and strengthens the overall emotional ties to cooperatives. Cooperation can be intensified, product quality improved and member retention positively influenced by means of contractual agreements, possibly in the form of cultivation and sales contracts between members and their cooperative. Against the background of growing farms and the related rising demands on the qualifications of farm managers, expanding the existing services offered provides another possible starting point for improving relationships with members. Expanding the services offered by the farm makes sense particularly in relation to advisory services in business administration, business management and production technology. To secure their market position, cooperatives can adapt to changing market conditions and gain a competitive edge by adopting a strategy of cost leadership, differentiation or niche marketing. The combined implementation of these strategies often happens in practice. Mergers represent another common strategy for improving market position. The history of mergers of fruit cooperatives in South Tyrol shows that the intensive involvement of members in the merger process is vital for its success. Structural change in German agriculture therefore not only has consequences for the farmer as an entrepreneur. Rural cooperatives also need to respond to changes in agricultural business structures by adopting adaptation strategies specifically matched to the particular cooperative. The size of the company is not decisive when it comes tor the success of managing a cooperative or a farm. The success of the business depends much more on the individual farm manager or director, who needs to be able to recognise new potential and business opportunities in a dynamically changing environment and implement innovations to ideally position the business within the competitive market.