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Analysis of Spatial Pattern of Large Manufacturing Indexes in Iraq for 2018 Pjaee, 17 (6) (2020)

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Analysis of Spatial Pattern of Large Manufacturing Indexes in Iraq for 2018 Pjaee, 17 (6) (2020) ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 PJAEE, 17 (6) (2020) ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 Mahya Mohsen Hassan Department of Geography, College of Education for Humanities, Kirkuk University, Kirkuk. Iraq Corresponding author: [email protected] ABSTRACT Undoubtedly, industries generally have a great importance. Transformational industries have a special importance in changing economic, social and political balances of the state. This importance is ascribed to the possibility of affecting these economic and social indictors directly on the level of individuality and community. Industrial indicators were detected and analytically investigated which were far from their specialization such as permanent workers, commodity manufacturing employees, wrapping, service requirements and etc. Some of the positives and negatives that represent gaps must be addressed in a purely scientific and logical manner to guide decision-makers to this vital issue. The research problem lies in the fact that despite the abundance of data that contribute to advancing the transformation industries, their contribution to the national product is minimal. The study aims to uncover the governorates ranks by using the employment analysis according to the study indicators and highlight the sector having the highest rank in the number of establishments, the absorption of manpower and the sales value. However, the study found that the pattern of spatial distribution of the indicators in the governorates of Baghdad and Babylon recorded high values and for all the indicators of the study. These indicators represent two important poles for the manufacturing industries where decision-makers shall direct attention to, stimulate, develop, and even transform them into industrial cities similar to the advanced industrial countries. The private sector had the largest share of industrial establishments and workers in the study area. Keywords: manufacturing industries - spatial pattern - factor analysis - sales value - coefficient of variance Introduction Industry occupies an important position among economic activities in most countries and plays a special role in improving the economy. Manufacturing is one of the productive activities, if not the most important of them, representing the basis of the economy of contemporary societies in particular. 7446 ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 PJAEE, 17 (6) (2020) It is essential for achieving economic, social and political progress through the great role it plays in improving the living standards and social conditions of the population (R.J.johnston1978). This is achieved by providing various needs and employing as much as possible the labor force, especially labor- intensive manufacturing industries. In addition, it is the main market for extractive products, agricultural products (industrial agricultural products), and the services sector. It directly affects the revitalization of trade and local and regional transport. Based on this importance, countries seek to develop manufacturing industries and rely on them in the development and revitalization of their economies(K.H.yuan2004). Iraq is one of the countries that have been interested in manufacturing industries in the past and utilized them as a means to satisfy its needs (self-sufficiency) for some products. However, they are mostly consumer industries and based on the public and private sector in most of their activities. Accordingly, this research aims at investigating and analyzing the activity of large manufacturing industries in order to determine the extent of its development and contribution to gross domestic product (henceforth, GDP) through using factor analysis. 1. Index of Large Manufacturing Industries in Iraq during 2015-2018 Table (1) and figure (1) clarify the number of industrial establishments for large manufacturing industries in Iraq and their relative importance, reaching 621industrial establishments in2015. However, this number decreased to 586 in 2016 and continued decreasing to reach 574 in 2017. This decrease is attributed to the terrorist operations experienced by many provinces, which negatively affected all economic activities, including industrial activity (Al- Janabi, 2013).Then, they recovered in 2018 to reach (627) industrial establishments due to the rehabilitation of some of them in areas that have been destroyed by terrorism, especially in the provinces of Nineveh, Baghdad and Salah al-Din. Concerning the rate of change during 2017-2018, it reached (9.2%).As for the number of employees, it is one of the most important international standards adopted to measure the reality of industries in a region and investigate the implications of this number. Hence, providing job opportunities, eliminating unemployment and the optimal utilization of human resources in the development process are the main objectives of the process of economic and social development. The index of the number of employees is one of the indexes contributing to the achievement of development (Al-Azzawi, 2013).In Iraq, this number has fluctuated between decrease and increase due to the fluctuation in the number of industrial establishments as mentioned earlier. Based on table (1), this index reached (129,224) employees in 2015, but in 2018 it reached (115,986) employees. This index recorded an annual change rate (1.3%), which represents a low rate. As for the value of wages, it reached (1,307,436) million/dinars in 2015, 7447 ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 PJAEE, 17 (6) (2020) but decreased in 2016 and 2017; while in 2018 it increased to (1,306,191) million/dinars with a slight change of (4.1%). Table 1: industrial indexes for large manufacturing industries in Iraq during 2015-2018 Rate of Indexes 2015 2016 2017 2018 change (2017-2018) Number of industrial 621 586 574 627 9.2 establishments Number of employees 129224 117020 114497 115986 1.3 The value of wages and 1307436 1220420 1255094 1306191 4.1 benefits (million dinars) Production value (million 423550 4866859 6937474 6410012 7.6 - dinars) Value of supplies (million 2271691 3027024 3358774 3678466 9.5 dinars) Sales value (million dinars) 3918135 4631424 5861615 6131458 4.6 Value added (million dinars) 1963860 1839835 3578700 2731546 23.7 - Source: Researcher based on the Ministry of Planning, Central Bureau of Statistics, Department of Industrial2018 Statistics, Unpublished Data, 2018 )1 . ( : .)1( Figure 1: number of industrial manufacturing establishments for 2018 Source: Researcher based on Table (1). The value of production was the highest in 2017, reaching (6,937,474 million/dinar), while the lowest value recorded in 2015 was (423,550) million/dinars with a lower negative annual rate of change (-7.6%). In terms of the value of supplies, the lowest value in 2015 was (2,271,691) million/dinar, while the highest value was (3,678,466) million/dinar in 2018. Concerning the value of sales, the lowest value was in 2015, while the highest value was (6,131,458) million/dinar in 2018. This fluctuation in the number of establishments and employees affected 7448 ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 PJAEE, 17 (6) (2020) value added whose lowest value was (1,839,835) million/dinar in 2016, and then it increased to reach the highest value (3,578,700) million/dinar in 2018. 2. Average Wages of Employees and Manufacturing Ratio during 2015-2018 The average wage of employees is one of the important indexes by which the economic importance of industrial activity can be measured (As-Samak, 2008).Table (2) and figure (2) represent the average wages of employees in large manufacturing industries. It is observed that the productivity of employees from the value of total production varied during 2015-2018.For the productivity of the employee from production, the highest percentage was (60.6) in 2017 with a low negative annual rate of change (-8.7%) for 2017- 2018. While the highest percentage of employee's productivity from value added was (31.2%) in 2017 with a negative rate of change (- 24.4%).Moreover, the highest productivity of dinar from wages reached (5.5%) in 2017with a negative annual rate of change (-10.9%). The highest rate of employee's average wage from supplies was (31.8%) in 2018 with a high rate of change (8.5%). The highest average wage of employee was (11.3) in 2018 with an annual rate of change (2.7%), while the highest rate of manufacturing was (62.2%) in 2016 with an annual rate of change (2.7%). Table 2: Average wage of employees and manufacturing rate for 2018 Indexes 2015 2016 2017 2018 Rate of change (2017-2018) Employee's productivity from production 32.8 41.6 60.6 55.3 8.7- (million dinars) Employee's productivity from value added 15.2 15.7 31.2 23.6 24.4- (million dinars) Dinar productivity from wages 3.2 4.0 5.5 4.9 10.9- Employee's average wage from supplies(million 17.6 25.9 29.3 31.8 8.5 dinars) Average of employee's annual wage (million 10.2 10.5 11.0 11.3 2.7 dinars) Manufacturing percentage 53.6 62.2 48.4 57.0 17.8 Source: Researcher based on the Ministry of Planning, Central Bureau of Statistics, Department of Industrial Statistics, Unpublished Data, 2018 . 7449 ANALYSIS OF SPATIAL PATTERN OF LARGE MANUFACTURING INDEXES IN IRAQ FOR 2018 PJAEE, 17 (6) (2020) Figure 2: Average wage of employees in large manufacturing industries in Iraq for 2018 Source: Researcher based on Table (2). 3. Index of Large Manufacturing Industries in Iraq by Sector for 2018 Index of large manufacturing sectors is necessary for identifying the extent to which these sectors contribute to the country's economic activity (Hassan, 2002). According to the results presented in table (3) and figure (3), the number of manufacturing industrial establishments in the private sector amounted to (536) with a relative importance of (85.4%) of the total industrial establishments , followed by the government sector (47)establishments with a relative importance of (7.4%).
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