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1 – 10 of over 1000Uses a model of technical change embodied in capital equipment toanalyse average labour productivity growth. Determinants of productivitygrowth identified in this analysis are…
Abstract
Uses a model of technical change embodied in capital equipment to analyse average labour productivity growth. Determinants of productivity growth identified in this analysis are: (1) the rate of labour‐saving technical change; (2) the differential in the rates of change of wages and the rental price of capital; and (3) the rate of growth of industry productive capacity. Finds evidence that each of the identified factors has a positive and statistically significant relationship to average labour productivity growth in a cross‐section of Australian manufacturing industries.
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The paper aims to investigate the relationship between the age of employees and employers on the one hand and establishment closure probability on the other.
Abstract
Purpose
The paper aims to investigate the relationship between the age of employees and employers on the one hand and establishment closure probability on the other.
Design/methodology/approach
The paper is based on large‐scale longitudinal Danish register data. Past employer and employee age distributions are used as predictors for future establishment closure probability by means of a discrete‐time hazard model.
Findings
The paper shows that the age of the employer and the age distribution of the employees are predictors of an establishment's future closure probability. This probability assumes a temporary maximum when employers or large shares of employees are reaching retirement age. Estimates suggest that a ten percent increase in the share of employees who will be of retirement age in the future increases future annual closure probability by approximately ten percent.
Research limitations/implications
It is possible to interpret the finding of temporary maxima in the closure probabilities as the result of the retirement decisions of individuals. However, this interpretation of the results would have to rest on an identifying assumption. Also, findings are driven by small establishments, and should not be generalised to firms of medium size or above.
Practical implications
The paper can be used to make predictions of future establishment closure rates.
Social implications
Policies that reduce the costs of employee turnover and firm ownership changes might decrease closure rates.
Originality/value
This paper adds to our knowledge of the relationships between the age of individuals and firm performance. Also, it considers the role of retirement as a largely overlooked determinant of industry dynamics.
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Dmitry Rudenko and Georgii Tanasov
Indonesia is the fourth most populous country in the world, which has a strong effect on primary energy use and depletion of natural resources. This paper considers energy…
Abstract
Purpose
Indonesia is the fourth most populous country in the world, which has a strong effect on primary energy use and depletion of natural resources. This paper considers energy intensity (EI) defined as a measure of the amount of energy it takes to produce a dollar's worth of economic output. The purpose of the paper is to explore how different factors contributed to the decline in Indonesia's EI.
Design/methodology/approach
The cointegration regression methodology is applied to explore the long-term nexus between EI and its factors in Indonesia during 1990–2016.
Findings
Results show that domestic credit to the private sector, as well as the share of alternative energy, has a significant impact on the decline of EI in Indonesia.
Research limitations/implications
We do not try to rule out other possible determinants of EI. We consider the determinants of EI using time series data, while an ideal analysis would be based on panel-level data. Another limitation is that the study covers only the small-time period from 1990 to 2016.
Practical implications
Our findings serve to aid the government and policymakers in prioritizing improvements in the sphere of energy policy. An important policy implication, regarding Indonesia, that arises from our study is that, for the country to be able to decrease its EI, it must be able to develop its financial market and zero-carbon energy sources, mainly geothermal energy with its huge potential.
Originality/value
We show that energy prices, financial development and the share of alternative energy sources contribute to EI decrease. Policy recommendations include geothermal and solar energy development as one of the most prospective sources of alternative energy in Indonesia.
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Toseef Azid, Mehmet Asutay and Muhammad Junaid Khawaja
To find out the behaviour of firms with objectives of Islamic Shariah when a number of techniques are working simultaneously with the different productive efficiencies.
Abstract
Purpose
To find out the behaviour of firms with objectives of Islamic Shariah when a number of techniques are working simultaneously with the different productive efficiencies.
Design/methodology/approach
This is a theoretical paper based on the modified model of layers of techniques which was initially developed by Professors W. Leontief and P. N. Mathur and tries to evaluate the impact of entrance of new techniques on obsolescence in the ethical‐moral cum economic framework of Islamic political economy system.
Findings
This study suggests wastage of the resources because of their economic obsolescence and on the cost of future generation is not allowed in the system of Islam and ultimately decrease the social welfare level.
Research limitations/implications
A dynamic cum marginal input‐output table can be constructed on the basis of this framework and formulate the socio‐economic policy.
Originality/value
This research is beneficial to the researchers, policy makers and social scientists for the enhancement of the level of social welfare through this model.
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Presents results of an investigation into the rate of rental and capital obsolescence in the City of London office market. Using a theoretical approach based on a “vintage model”…
Abstract
Presents results of an investigation into the rate of rental and capital obsolescence in the City of London office market. Using a theoretical approach based on a “vintage model” of capital investment and data from the IPD database, assesses the historic rate of obsolescence in the City and draws comparisons with previous studies, finding similar rates of rental obsolescence (1.2 per cent p.a.), but lower rates of capital obsolescence (1.6 per cent p.a.). Considers the potential for an acceleration in the rate of obsolescence resulting from the introduction of new working practices and the emergence of an endemic over‐supply in the market.
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This paper is a commentary on the third in the series of consultative papers (CP3) on a NewBasel Capital Accord for banks, earlier papers being issued in 1999 and 2001. While CP3…
Abstract
This paper is a commentary on the third in the series of consultative papers (CP3) on a New Basel Capital Accord for banks, earlier papers being issued in 1999 and 2001. While CP3 retains the overall structure of its predecessor, it contains many revisions and a more complete set of rules. Greater coherence has not, however, been accompanied by a reduction in complexity. This is partly an inevitable consequence of attempting to set global standards for banks at different levels of sophistication. But it also reflects financial innovation and the growing complexity of banking practice, which are a continuing source of problems for regulation. Many of the revisions in CP3 in comparison with 2001 are a response to representations from governments and the financial sector in areas such as greater flexibility regarding adoption of different elements of the internal ratingsbased approach, adjustment of the risk weights for lending to small and medium‐sized enterprises (SMEs) to avoid punitively high interest charges, and a less prescriptive approach to measuring operational risk under the most advanced option for handling the subject. The Basel Committee on Banking Supervision intends to address some continuing reservations concerning the shape of the New Accord before mid‐2004. Even these further changes, however, are unlikely to bring on board major countries which have declared that they will not apply the New Accord or limit its application to a minority of their banks.
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The hypothesis that the growth in total GNP can also be explainedby other factors than the growth in total inputs (capital and labour)and their respective productivities is…
Abstract
The hypothesis that the growth in total GNP can also be explained by other factors than the growth in total inputs (capital and labour) and their respective productivities is analysed by the use of 1960‐1985 OECD country data. The OLS estimations of the models of embodied and disembodied technical change in both capital services as measured by the R&D expenditures and labour productivity as measured by investment expenditures in education and health showed very significant results. However, despite the inclusion of these expenditures in the aggregate production function, GNP growth has not been fully exhausted in all OECD countries. Indeed, the unexplained residual which was computed for these countries turned out to be of non‐negligible magnitude and growth. The assumed non‐factor sources of growth containing the unexplained residual which may not be associated by the movement along a production function would include non‐quantifiable political, social and institutional forces which, in some cases, might interact to speed or adversely delay growth unless they remain stable or improved.
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Sets out to discover what makes a great vintage and whether the quality of a wine can be predicted. The ‘en primeur’ market from the 1960's to the early 1990's is reviewed and…
Abstract
Sets out to discover what makes a great vintage and whether the quality of a wine can be predicted. The ‘en primeur’ market from the 1960's to the early 1990's is reviewed and what the market regards as a quality wine is tested for correlation with longevity. Weather patterns associated with excellent vintages are examined with the conclusion that they occur at random. Vintages of up to ninety years are analysed to establish probability factors and from these factors a pricing method is proposed. Concludes that it should be possible to gain competitive advantage through the use of probability analysis, although this concept should be judged in the long term.
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Masudul Alam Choudhury, Toseef Azid and Mushtaq Ahmad Klasra
To apply the Tawhidi epistemology in the automobile industry as the paradigm of the Islamic socio‐scientific order in terms of its inherent knowledge‐centered worldview.
Abstract
Purpose
To apply the Tawhidi epistemology in the automobile industry as the paradigm of the Islamic socio‐scientific order in terms of its inherent knowledge‐centered worldview.
Design/methodology/approach
The concepts of unity and unification of knowledge in a system‐wide sense are analytically developed in the framework of shuratic process or equivalently as the interactive, integrative and evolutionary process‐oriented methodology (IIE).
Findings
The analytical conceptualization is derived in the light of Qur'anic rules (ahkam) and recommended that policies, programs and instruments would jointly promote the development of mutual profitability and address the social milieu as well.
Research limitations/implications
Tawhidi unification methodology of extensive participation and linkage can be applied widely.
Originality/value
Certain policy recommendations in the light of the shari'ah precepts of this case study can be made.
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The purpose of this study is to investigate the effects of nature and a range of institutional sources of start-up finance on micro and small enterprises' (MSEs) productivity…
Abstract
Purpose
The purpose of this study is to investigate the effects of nature and a range of institutional sources of start-up finance on micro and small enterprises' (MSEs) productivity growth in Ghana.
Design/methodology/approach
Using a unique non-farm household enterprise survey data from Ghana, this paper estimated TFP or Solow residual as a proxy for MSEs' productivity growth as well as other for robustness checks.
Findings
After controlling for firm-level characteristics such as size, age, ownership type, etc. the study finds that debt finance was positively associated with productivity growth, while financing from donation or charity did not. Second, this paper found significant positive associations between a more formal financing source such as formal and semi-formal financing sources and MSE's productivity growth. This finding was robustly confirmed by manager's growth perception. Further, compared to internal finance, external financing sources were found to be positively associated with productivity growth – indicating complementarities among all external financing sources.
Research limitations/implications
Further research will be needed to validate these results, particularly using enterprise ongoing finance or working capital rather than start-up capital.
Originality/value
The study contributes to the finance literature by studying the impact of nature and institutional financing sources on MSEs' productivity growth in the African context.
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