Labor Productivity productivity reflects how well the region utilizes its resources to produce output. It is driven by employee skills, capital stock and total factor productivity, which are the many factors that influence how well inputs are used. Labor mobilization is attributable to a combination of factors. The demographic profile of the population determines the share of people of working age. Labor productivity in ASEAN is relatively low, as is the case with most developing countries. Fig.9: Labor Productivity Level and Growth: ASEAN and Selected Countries Source: Central Intelligence Agency (2012). The World Fact-book 2012. Exports ASEAN’s annual share of world export of goods and services has been two to three times higher than its share of world GDP over the years, which reflects the region’s dependence on exports as a source of economic growth. However, despite the importance of exports, ASEAN has not made much inroad in increasing its share of world exports in the last ten years, as its share has hovered around 6 percent. Among ASEAN countries, Singapore has strongest presence in global markets. ASEAN has strong clusters in a number of industries such as information technology (IT), oil and gas products, agricultural products, metal, mining and manufacturing, transport and logistics. Fig.10: Exports by Clusters: ASEAN Countries Source: Central Intelligence Agency (2012). The World Fact-book 2012. THE EXPORT DEMAND MODEL-INDIA & ASEAN The specification of demand functions in foreign trade first determines total demand for imports of buyer country, and then independently allocates demand among competing sources of supply. We specify India's exports to jth ASEAN country as a demand function, so that it may be called the import function of jth ASEAN country for India’s exports. Thus, the system can be seen as an
Labor Productivity productivity reflects how well the region utilizes its resources to produce output. It is driven by employee skills, capital stock and total factor productivity, which are the many factors that influence how well inputs are used. Labor mobilization is attributable to a combination of factors. The demographic profile of the population determines the share of people of working age. Labor productivity in ASEAN is relatively low, as is the case with most developing countries. Fig.9: Labor Productivity Level and Growth: ASEAN and Selected Countries Source: Central Intelligence Agency (2012). The World Fact-book 2012. Exports ASEAN’s annual share of world export of goods and services has been two to three times higher than its share of world GDP over the years, which reflects the region’s dependence on exports as a source of economic growth. However, despite the importance of exports, ASEAN has not made much inroad in increasing its share of world exports in the last ten years, as its share has hovered around 6 percent. Among ASEAN countries, Singapore has strongest presence in global markets. ASEAN has strong clusters in a number of industries such as information technology (IT), oil and gas products, agricultural products, metal, mining and manufacturing, transport and logistics. Fig.10: Exports by Clusters: ASEAN Countries Source: Central Intelligence Agency (2012). The World Fact-book 2012. THE EXPORT DEMAND MODEL-INDIA & ASEAN The specification of demand functions in foreign trade first determines total demand for imports of buyer country, and then independently allocates demand among competing sources of supply. We specify India's exports to jth ASEAN country as a demand function, so that it may be called the import function of jth ASEAN country for India’s exports. Thus, the system can be seen as an
ASEAN_INDIA.docx