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Profit Rate and Profit Persistence in the Norwegian Construction Industry – A Sector with Different Segments, Strong Competition and Many Small Companies
Leiv Opstad and Robin Valenta
DOI: 10.15604/ejef.2023.11.02.001
Abstract
There exist numerous published articles that examine the level of profit persistence across various industries. Such analyses prove highly valuable in acquiring a deeper understanding of the market. This paper investigates how important business-specific factors are for businesses involved in construction industry. This sector is characterized by its high capital intensity and sensitivity to economic cycles. To investigate its dynamics, researchers commonly employ the dynamic panel data approach along with the Generalized Method of Moments (GMM) estimator, a widely used econometric technique. The approach is to estimate to what degree firms can make a profit and outperform the market. We split the sample of Norwegian construction firms from 2006 to 2019 by three criteria: segment, size, and debt. With a comprehensive dataset encompassing information from over 40,000 companies spanning a period of 14 years, there exists a solid foundation for generating accurate estimates. The finding is that the degree of profit persistence (PoP) is considerable in this sector and especially among large companies. The long-term profit rate is around 6 percent. There was a noticeable decline in activity during the financial crisis. The building segment and highly indebted enterprises faced the greatest challenges during that period.
Keywords: Construction Industry, GMM, Dynamic Analyses, Profit Persistence, Financial Crises
Work Capacity of Older Adults in Hong Kong
Kwok Ho Chan and Michael Chi Man Ng
DOI: 10.15604/ejef.2023.11.02.002
Abstract
Hong Kong is facing a serious ageing issue. Apart from that, Hong Kong is facing a shrinking labor force as the number of people in the labor force has been falling since 2018. The ageing population and shrinking labor force have stimulated the discussion on the age threshold of eligible older adults to receive retirement benefits and/or old age allowances. The impact of any policy change may depend on the health and the work capacity of the people aged around 65. Nonetheless, research on the work capacity of older adults in Hong Kong is lacking. In this study, we attempted to estimate the work capacity of older adults in Hong Kong based on the mortality rate. It was found that there is substantial untapped work capacity of older adults in Hong Kong, with a potential gain in work capacity of 3.898 years. The results of this study shed light on the making of old-age policies. With the rapid ageing population and shrinking labor force in Hong Kong, it is timely to explore if the society could further utilize the work capacity of older adults. More research on the work capacity and health of the elderly is needed.
Keywords: Work Capacity, Aging Population, Hong Kong
Enhancing Foreign Currency Allocation for Private Sector Development – Case of the Reserve Bank of Zimbabwe Forex Auction System
Michael Takudzwa Pasara, Nigel Nyajeka, and Steven Henry Dunga
DOI: 10.15604/ejef.2023.11.02.003
Abstract
Foreign currency shortages remain a perennial challenge in Zimbabwe leading to several spillover effects such as shortages in electricity, raw materials, fuel, inflation among other market distortions. The central bank introduced the Dutch Auction system in an attempt to address forex shortages but the effectiveness of this approach has been questioned. This study employed the Vector Autoregressive (VAR) and error corrected (VECM) models in order to empirically determine how the Reserve Bank of Zimbabwe can efficiently allocate foreign currency in a manner which supports private sector development. In the short run, the auction is an effective tool to promote private sector development. However, long run analysis presents a deletions effect. This is due to a rise in round-tripping from market participants to leverage and perform arbitrage on different rates (auction and parallel), increased backlog reflecting shortages in allotments and high incidences of corruption. All this leads to a significant decrease in the confidence levels of the economy among private stakeholders. The study recommends monitoring of authorized auction dealers, improve public confidence by minimizing rent-seeking behavior, re-model exporters participation in the auction system or abandoning the auction system altogether.
Keywords: Foreign Currency Auction, Private Sector Development, Monetary Policy, Zimbabwe
Considerations regarding the Legal Aspects and Social Policy Issues related to Migration Phenomenon in the EU: The Case of Romania
Andreea Elena Matic, Valentina Cornea, Ștefania Cristina Mirică, and Florin Tudor
DOI: 10.15604/ejef.2023.11.02.004
Abstract
In this paper, we aim to analyze some of the most recent measures taken at the level of the European Union for the protection of migrants. More specifically, we intend to reveal and analyze the new EU legal provisions regarding the conditions for obtaining the Blue Card and how these provisions were integrated into Romanian legislation. In order to achieve this goal, we first describe and analyze the general legal frame and the content of the prior provisions on this matter. We also examine if, during these reforms regarding the Blue Card, the process of integration is actually facilitated and how the national provisions of the Member States influence the obtaining of the mentioned document, which represents a legal form to get the right to live and work on a territory with all the rightful benefits. To provide material and moral support for the refugees, legal measures are constantly being taken at the Union level. In conclusion, we consider that even though the EU authorities are constantly trying to adjust the migrant labor legislation in order for it to be more permissive and efficient, the Union is still far from being inclusive enough. On the other hand, Romanian legislation also continuously adapts to new provisions, but the situation differs from those of other EU countries.
Keywords: Migrant, Refugee, Blue Card, Human Rights, Social Policy, Labor Market, Romania
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