Manufacturing and economic development: The actuality of Kaldor's first and second laws

Marconi, Nelson; Reis, Cristina Fróes de Borja; Araújo, Eliane

doi:10.1016/j.strueco.2015.12.002

Cited by 87 publications

(57 citation statements)

References 28 publications

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“…The enlargement of this Kaldor equation and its application for use in several economic sectors, including agricultural activities, has already been implemented in other work, such as Martinho [28,29]. Indeed, the Verdoorn and Kaldor developments are increasingly relevant in the current global economic context and bring insight to both regional development [30][31][32][33], of labor contexts [34,35] and the relationship between manufacturing and economic development [36].…”

Section: Methodology Explanationmentioning

confidence: 99%

Socioeconomic Impacts of Forest Fires upon Portugal: An Analysis for the Agricultural and Forestry Sectors

Martinho

2019

Sustainability

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Recent forest fire activity has resulted in several consequences across different geographic locations where both natural and socioeconomic conditions have promoted a favorable context for what has happened in recent years in a number of countries, including Portugal. As a result, it would be interesting to examine the implications of forest fire activity in terms of the socioeconomic dynamics and performance of the agroforestry sectors in the context of those verified in the Portuguese municipalities. For this purpose, data from Statistics on Portugal was considered for output and employment from the business sector related to agricultural and forestry activities, which were disaggregated at the municipality level, for the period 2008-2015. Data for the burnt area was also considered in order to assess the impact of forest fires. The data was analyzed using econometric models in panel data based on the Keynesian (Kaldor laws) and convergence (conditional approaches) theories. The results from the Keynesian approaches show that there are signs of increasing returns to scale in the Portuguese agroforestry sectors, where the burnt area increased employment growth in agricultural activities and decreased employment in the forestry sector. Forest fires seem to create favorable conditions for agricultural employment in Portuguese municipalities and the inverse occurs for forestry employment. Additionally, some signs of convergence were identified between Portuguese municipalities for agroforestry output and employment, as well for the burnt areas. However, signs of divergence (increasing returns to scale) from the Keynesian models seem to be stronger. On the other hand, the evidence of beta convergence for the burnt areas are stronger than those verified for other variables, showing that the impacts from forest fires are more transversal across the whole country (however not enough to have sigma convergence).Sustainability 2019, 11, 374 2 of 14 modelling, for example, brings new approaches for forest fire assessment, namely because it allows us to link several dimensions related with these multidisciplinary realities [2]. Good assessments of the impacts of forest fires are important contributions to the design of adjusted agroforestry policies, specifically in order to direct support to the most negatively affected activities. Policy instruments and related legislation are determinant tools for reducing the negative impacts of forest fires [3].Indeed, in international terms, agroforestry land inside and outside of Europe continues to burn, in some cases with more severity and frequency, namely due to climate change and global warming. On the other hand, governments and related institutions create (and disclose) more regulations than in the past [4]. Maybe, new approaches are needed, where new technologies may play a determinant role. Multidisciplinary approaches could bring interesting contributions, for instance, economic analysis could transmit valuable insights.These undesirable forest fires have always brought neg...

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Section: Methodology Explanationmentioning

confidence: 99%

Socioeconomic Impacts of Forest Fires upon Portugal: An Analysis for the Agricultural and Forestry Sectors

Martinho

2019

Sustainability

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“…The productivity in the manufacturing sector of a poorer country will increase in a faster rate revealing a distinctive trend of unconditional convergence with the technological frontier (Rodrick, 2013).As a consequence the manufacturing sector in comparison to other sectors has a higher chance for technological progress, keeping in view thatits development does not rely on country-specific situations. Growth in manufacturing tends to speed up the rate of technological development of the whole economy partiallybecause of the absorption of surplus labour (Kaldor, 1967), and creation and diffusion of invention in certain industries through linkage effects (Marconi, Reis & Araújo, 2016).…”

Section: Theoretical Reasons For Manufacturing As Driver Of Growthmentioning

confidence: 99%

Sinking in Premature Deindustrialisation or Revitalising Industrialisation? Nepal’s Prospective

Dahal

2018

Econ J Dev Issues

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“…These three laws have been investigated in a large number of empirical studies employing different econometric methods [3]- [11]. Overall, these studies found a positive association between growth rate of industrial output and economic growth, confirming Kaldor's first law.…”

Section: Introductionmentioning

confidence: 68%

Manufacturing and Economic Growth in ECOWAS Countries: A Test of Kaldor’s First Law

Keho¹

2018

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Kaldor's first growth law posits that the growth rate of an economy is positively related to the growth rate of its manufacturing sector. Since the sixties, this relationship has been examined in a large number of studies using a wide variety of data sets and econometric methods. This paper examines the validity of this law for 11 ECOWAS member countries over the period 1970-2014 by employing an Autoregressive Distributed Lag bounds test approach to cointegration and Granger causality tests. The results show that manufacturing output growth causes positively economic growth and non-manufacturing output growth, thereby providing support for Kaldor's first growth law. The policy recommendation from the results of the study is that structural transformation in favour of industrial production activities would help to accelerate economic growth in ECOWAS countries.

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Manufacturing and economic development: The actuality of Kaldor's first and second laws

Cited by 87 publications

References 28 publications

Socioeconomic Impacts of Forest Fires upon Portugal: An Analysis for the Agricultural and Forestry Sectors

Socioeconomic Impacts of Forest Fires upon Portugal: An Analysis for the Agricultural and Forestry Sectors

Sinking in Premature Deindustrialisation or Revitalising Industrialisation? Nepal’s Prospective

Manufacturing and Economic Growth in ECOWAS Countries: A Test of Kaldor’s First Law

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