Employment
Hossein Hajibabaei; Mehdi Ajalli; Majid Fosolee
Abstract
AbstractThe expansion and revitalization of small and medium enterprises in industrial provinces is an inevitable necessity to reduce unemployment and use the potential capacities of industrial centers. Hamedan province, like other industrial provinces, is no exception in this regard and this factor ...
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AbstractThe expansion and revitalization of small and medium enterprises in industrial provinces is an inevitable necessity to reduce unemployment and use the potential capacities of industrial centers. Hamedan province, like other industrial provinces, is no exception in this regard and this factor can be effective in the economic growth of the province. The main purpose of this study is to evaluate and prioritize the impact of facilities granted by state-owned banks on job creation of small and medium enterprises in Hamadan province during the period (2016-2021). The research method is applied in terms of purpose and descriptive-survey in terms of data collection. The statistical population of the study includes 68 experts and managers of state-owned banks and related executive bodies involved in the research subject. Due to the limited size of the population, the census method (all members of the community) is used as a sample. For this purpose, by reviewing the literature, background and interviews with experts of state-owned banks and related executive bodies, a conceptual model consisting of the structures of "facilities granted by state-owned banks" and "employment of small and medium enterprises" was proposed. In order to test the proposed model and hypotheses and answer the research questions, the path analysis approach and the hierarchical analysis process are used. The final result of the evaluation with this process showed that the first factor (facilities related to working capital in the industry and mining sector) with the highest weight (0.43) ranked first, the second factor (facilities related to fixed capital in the industry and mining sector) It is ranked second with weight (0.36). Also, the fourth factor (facilities related to working capital in the agricultural sector) with a weight of (0.21) is ranked last in terms of importance. Finally, scientific and practical suggestions related to the output of the research hypotheses test are presented; Issues and inadequacies in the financing of small and medium enterprises in Hamadan province will be reviewed and solutions and improvement and development proposals for financing small and medium enterprises through the banking system will be presented.
Employment
akram hasannejsad; mahdi moradi; Sima eskandari
Abstract
1- INTRODUCTION
In today's competitive world, productivity as a philosophy and a vision based on the strategy of improving operations is the most important goal of leading organizations and is a necessity for economic growth and improving the living and welfare of a country. The amount and rate ...
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1- INTRODUCTION
In today's competitive world, productivity as a philosophy and a vision based on the strategy of improving operations is the most important goal of leading organizations and is a necessity for economic growth and improving the living and welfare of a country. The amount and rate of productivity growth in each country has a significant impact on the trend of macroeconomic variables at the global level. Many factors affect productivity, among which, the role of wages and inflation can be very important.
2- THEORETICAL FRAMEWORK
In the inflationary state, a misunderstanding is created in relation to the levels of relative prices in societies; therefore, in such a situation, an atmosphere of uncertainty dominates the economy of countries and production costs increase due to inflation, and this can affect the wages paid by the employer to the workforce. As a result of the increase in prices and the disproportion of salary increase with inflation, the real income of the labor force decreases and the labor force cannot cover all its expenses. Therefore, in an inflationary state, we will witness things such as a decrease in the health of the workforce, a decrease in the level of education of the workforce, a decrease in the motivation of the workforce, and the creation of a class gap; therefore, labor productivity can gradually decrease.
3- METHODOLOGY
The aim of this study is to determine the effect of wages and inflation on labor productivity by using Markov switching econometric technique in 15 selected developing countries (Iran, Brazil, Egypt, Indonesia, Jordan, Mauritius, Mongolia, Philippines, Thailand, Colombia, India, Kazakhstan, Mexico, Peru and South Africa) during the period 2006 to 2017. In this paper, the indicators of foreign direct investment, human capital, business environment, corruption control, and trade liberalization were considered as control variables in the model.
Markov switching econometric technique was used to estimate the effects of variables. Also, for more detailed investigations, the causal relationship between inflation and wages and labor productivity was investigated by using the Granger method.
4- RESULTS & DISCUSSION
The results of the estimations indicated the negative effect of inflation on labor productivity in both regimes (boom and recession). This result was consistent with the results of most domestic and foreign studies, but it is somewhat contradictory to Aiheanacho's (2017) study. The impact of wages on labor productivity was positive in both regimes (boom and recession), which indicates the confirmation of efficiency wage theories. In connection with control variables, human capital variables, trade liberalization and business climate had a positive effect on labor productivity in both the first and second regimes. In confirming the positive relationship of the business environment on productivity, it can be acknowledged that the business environment is a political, institutional and behavioral environment that affects the efficiency and risks associated with economic activities and investment. It provides the basis for more production, so production per worker also increases, which means increased labor productivity.
5- CONCLUSIONS & SUGGESTIONS
The results show that there is a negative and significant relationship between inflation and labor productivity in the studied countries. Therefore, governments should through reducing interference in the economy and compliance with the monetary rule and management of liquidity growth rate and creating grounds for economic stability, deal with the risk and uncertainty resulting from inflation.
Also, according to the results, there is a positive and significant relationship in both the first and second regimes, between labor wages and labor productivity, so it is necessary to adjust the wage laws based on the real value of labor (productivity) to strengthen the merit system and improve productivity. It is also necessary to adopt policies according to the theory of the value of the final product. So that the increase in wages without the destructive effects of inflation caused by cost pressure, leads to an increase in productivity. For this purpose, the labor law and wage payment mechanism should be amended. The findings of the research show that there is a positive and significant relationship between the business environment and the productivity of the labor force in both boom and recession regimes, so it is suggested that sustainable and coherent planning in order to improve and expansion of the infrastructure of the business space in the investigated communities. Therefore, it seems necessary for governments to think of measures that lead to productive investments in the business space.
The results show that the effect of wages on labor productivity is positive in both regimes (boom and recession). In relation to the control variables, the variables of human capital, trade liberalization and business climate have a positive effect on labor productivity in both regimes (boom and recession). But regarding the variables of foreign direct investment and corruption control, we observe a positive relationship in the first regime (prosperity) and a negative relationship in the second regime (recession). Also, for more detailed studies, the causal relationship between inflation and wages with labor productivity has been investigated by using the Granger method, which indicates a two-way causal relationship between the investigated variables.
Employment
leila torki; vala sanizaseh; mohammad reza ghasemi
Abstract
1- INTRODUCTION
Most of the developing villagers are deprived of access to financial resources and the lack of access of entrepreneurs to financial resources in this country, on the one hand, causes people to remain in poverty, and on the other hand, it causes a reduction and limitation in the ...
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1- INTRODUCTION
Most of the developing villagers are deprived of access to financial resources and the lack of access of entrepreneurs to financial resources in this country, on the one hand, causes people to remain in poverty, and on the other hand, it causes a reduction and limitation in the formation of income. New businesses are created to increase economic growth. Currently, with consideration the existing challenges in the villages of the country such as unemployment, low productivity rate, excessive immigration, and high level of poverty, it seems that the development and expansion of the payment of financial resources from microcredits. Which can create these areas by increasing the entrepreneurial ability of rural people. At the beginning of the third millennium, microcredit is one of the important resources for poverty alleviation and economic empowerment of villagers. The microcredit system has been one of the solutions proposed in the last few decades to invest and strengthen the financial foundation and savings in rural areas and ultimately rural communities and poverty alleviation through productivity improvement. Microcredits for financing ordinary people can use the services of common official institutions, and its main purpose is to gather capacities and devices for production among poor entrepreneurs and provide sustainable sources of livelihood for rural residents. Microcredits are one of the main topics in economics, after the change in economic theories and perspectives of development as an economic stimulus in developing countries and receiving the problems of inflation and increasing unemployment, and unfair distribution of wealth and income, the key to solving the puzzle is numbered. These useful credits are one of the characteristics of being a group, capability, people and relying on social justice, sustainability, creating security and safety as one of the strategies to strengthen poor local communities in the new paradigm (sustainable rural development).
Based on this, to implement monitoring plans and enumeration locations of rural plans in the high supervision of law enforcement, 4266 plans that were paid in full and in installments until 1400/10/20 were used for enumeration, and research results were carried out. The results obtained from the questionnaires are presented. In the second stage, the introduction of rural law and the research conducted in this field are discussed. In the third stage, based on the results of statistical tests and analysis of the data extracted from the questionnaire, the factors that affected the success of the plan in creating a plan are introduced, as also the cases where the deviation in the implementation of the plan is due to its legal provisions and the causes of it are discussed. In the fourth and final stage of the research, while summarizing the findings of the research, suggestions are presented to correct the flaws in the law and its executive regulations.
2- THEORETICAL FRAMEWORK
The law "Supporting the development and creation of sustainable employment in rural and nomadic areas using the resources of the National Development Fund" was approved by the Islamic Council in August 2016 and on September 19 of the same year by the President for implementation to the Program and Budget Organization. The country was notified. The purpose of this law is to fulfill the general policies of the resistance economy by promoting products and creating sustainable employment in rural and nomadic areas.
According to article 1 of this law, the National Development Fund is allowed to deposit up to 1.5 billion dollars of the fund's resources with the approval of the Board of Trustees in the Agricultural Bank, Omid Entrepreneurial Fund, Post Bank, and Cooperative Development Bank in the form of loans. These resources should be used to provide facilities to non-governmental natural and legal entities to create employment in villages and cities with less than ten thousand people, with priority for villages and cities with less than ten thousand people in border and nomadic areas. According to the law, the granted facilities can have a breathing period of up to one year and a repayment period of 6 years. Also, the operating institutions are required to have the equivalent of the deposit of the fund from their sources for granting facilities. The benefit of the facility is calculated at a rate of 6% in non-border areas and at a rate of 4% in border areas. According to Article 4 of this law, working capital facilities are granted only to production units located in rural industrial areas and cities with a population of fewer than 10,000 people, and according to article 9 of the working capital regulation, it is calculated at a rate of 10%. (Law on supporting the development and creation of sustainable employment in rural and nomadic areas using the resources of the National Development Fund, 2016).
The executive regulations of this project were approved by the Council of Ministers in November 2016. According to this regulation, the target sectors for granting this facility include 6 sectors of agriculture and natural resources, industries and small mines, service activities and information technology, tourism and handicrafts, and handwoven carpet activities and providing working capital for production units located in Rural industrial areas and cities with less than ten thousand people. In Article 4 of the regulation, the share of each sector of the facilities at the country level is determined. Based on this, the share of the agricultural sector is 45%, small industries and mines 10%, service activities and information technology 15%, tourism 10%, handicrafts, and handwoven carpet activities 10%, and the supply of working capital for production units 10%. These shares will be revised based on performance up to 30% by the national working group.
In Article 5 of the regulations, according to the combined index of the rural population, unemployment rate, and per capita income, the share of Isfahan province is 3.04% of the total resources.
According to Article 7 of the regulations, the supervision of the implementation of the sustainable employment development program should be carried out using the capacity of provincial organizations and executive bodies.
According to Article 10 of the regulation, operating institutions are required to review and approve the applicant's plans in terms of technical, financial, and economic justification while guaranteeing the reimbursement of fund resources, and in case of rejecting the request, inform the applicant of the reasons in writing.
Article 15 of the regulation states that the executive bodies must introduce qualified applicants to the operating institutions and monitor the realization of the plan's goals.
The Ministry of Cooperation, Labor and Social Welfare, as the main trustee of the implementation of this project, according to the regulations, should, in addition to the operational supervision of the implementation programs of employment, train applicants in specialized fields and provide a comprehensive system for registration and submission of documents.
3- METHODOLOGY
Considering that the purpose of this realization is to investigate the factors affecting the realization of the goals of the law, the most important of which was the creation of employment, and the deviations from its implementation and the executive regulations. In this stage, by using statistical tests and tables of descriptive statistics with the use of STATA software have been used to analyze the data of the questionnaires and present the results.
4-RESULTS
Among the parameters in the questionnaire, the variables that have been logically and empirically possible to have a relationship with the success of the project have been investigated by using t-test and ANOVA. Based on the results of these tests, the following variables have been related to the success of the project:
City implementation plan
Executive body
Target section
Design type
Company closure
The presence of a support system
5- CONCLUSION & SUGGESTION
According to the time frame of project implementation, two important external factors can be raised as challenges to the success of projects:
1) The spread of corona disease: with the spread of this virus and its detection in the country since March 2018, economic sectors throughout the country were affected by its consequences. The restrictions applied to control this disease have had the greatest effect on the service and tourism sectors, which can be effective in the performance of these sectors as an external effective factor.
2) Inflationary stagnation: with the intensification of cruel sanctions against Iran since the beginning of 2017 and the shock of the exchange rate jump, the country's economy has experienced high inflation rates and low and even negative economic growth in these 4 years. According to the published statistics, the industry and mining sectors have received the most impact from these conditions and have faced more negative growth.
Among the cases that are considered as deviations based on the goals of the plan or the cases listed in the regulations and law, a low percentage of the plans have deviations.
