<p>The primary objective of this study is to investigate the direct and moderating effects of labor productivity on total RMG exports, specifically to evaluate how temperature influences this relationship. The “autoregressive distributed lag (ARDL)” technique is applied to analyze annual data from 1994 to 2022. The robustness of the ARDL method is validated using the DOLS approach. The study reveals a significant positive connection between labor productivity and total RMG exports in the long and short term. In contrast, this relationship is quite opposite to the effect of temperature as a moderating factor on labor productivity. The affiliation asserts that a rise in labor productivity leads to an increase in RMG export volume, but this performance is hindered by temperature in the long run. However, the real interest rate negatively impacts total RMG exports in both the long and short run, while inflation demonstrates no significant effect. Policymakers should improve working conditions to counteract rising temperatures, safeguard labor productivity, and boost RMG export revenues while evaluating the impact of interest rate adjustments on the industry’s growth trajectory.</p>

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The moderating role of temperature on the labor productivity-RMG exports nexus in an emerging economy: controlling real interest rate and inflation

  • Md. Zahidul Islam,
  • Md. Sobhan Ali,
  • Chandan Kumar Roy,
  • Titu Miah

摘要

The primary objective of this study is to investigate the direct and moderating effects of labor productivity on total RMG exports, specifically to evaluate how temperature influences this relationship. The “autoregressive distributed lag (ARDL)” technique is applied to analyze annual data from 1994 to 2022. The robustness of the ARDL method is validated using the DOLS approach. The study reveals a significant positive connection between labor productivity and total RMG exports in the long and short term. In contrast, this relationship is quite opposite to the effect of temperature as a moderating factor on labor productivity. The affiliation asserts that a rise in labor productivity leads to an increase in RMG export volume, but this performance is hindered by temperature in the long run. However, the real interest rate negatively impacts total RMG exports in both the long and short run, while inflation demonstrates no significant effect. Policymakers should improve working conditions to counteract rising temperatures, safeguard labor productivity, and boost RMG export revenues while evaluating the impact of interest rate adjustments on the industry’s growth trajectory.