scholarly journals ASSESSMENT OF FACTORS OF SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR USING THE COBB-DOUGLAS PRODUCTION FUNCTION

2021 ◽  
Vol 7 (2) ◽  
pp. 37-49
Author(s):  
Olena Vasyl’yeva
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Production Function ◽  
Agricultural Sector ◽  
Value Added ◽  
Scale Economy ◽  
Pollutant Emissions ◽  
Gross Value Added ◽  
The Impact ◽  
Douglas Production Function

The aim of the article is to assess the impact of various factors (forms of capital) on the formation of gross value added and gross output of the agricultural sector of Ukraine’s economy under sustainable development using the modified Cobb-Douglas production function. Methods. The theoretical and methodological basis of the study consisted of the papers on economic growth, sustainable development and forecasting by scientists in classical and modern economics. A monographic method was used to cover the scientists’ views on the research issue. The parameters of the production function describing how variables (physical and human capital, pollutant emissions) act on gross value added and gross output of the agricultural sector of Ukraine were estimated on the basis of the modified Cobb-Douglas production function. Statistics for agriculture covering the period 2008-2018 were used for the assessment. The correlation and regression analysis was used to determine and verify the parameters of the production function. Equations of balance and construction of isoquants were used to foresight the optimal combinations of factors of the production function. Results. Using the Cobb-Douglas production function, econometric analysis with eco-socio-economic factors has shown that economic growth in agriculture is associated with improved quantitative and qualitative characteristics of labour potential, growing capital investment and reducing pollutant emissions. Estimation of the elasticity coefficients of the constructed Cobb-Douglas function (the sum exceeds 1) justifies that the economic development of agriculture mainly contains the features of a large-scale economy: modern level of science and technology provides advantageous expanding production to increase output. Practical significance. The constructed models allow to forecast assessment of the development of the agricultural sector’s components and can be used to develop the basic directions of the state agricultural policy to manage the formation and use of resource potential. Value/originality. Modelling how the resource factors act on output using the method of construction and calculation of parameters of the production function allows to predict the sustainable development of agricultural production under quantitative and qualitative changes in the use of labour and capital, as well as environmental factors. Further research ensures obtaining a dynamic multi-factor model of sustainable development of the agricultural sector and determining the main mechanisms of influence on the levers of economic growth.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals The Shift-Share Method: An Instrument for Analyzing the Dynamics of Industry Structure of the Economy

2020 ◽  
Vol 87 (4) ◽  
pp. 36-47
Author(s):  
Т. Ye. Trubnik ◽  
О. К. Mazurenko
Keyword(s):  
Economic Growth ◽  
National Economy ◽  
Financial Services ◽  
Rapid Development ◽  
Value Added ◽  
Economic Activities ◽  
Gross Value Added ◽  
Regional Factors ◽  
Bank System ◽  
The Impact

The socio-economic events of the latest years and uncertainties in the vectors of development of the economic environment cause the need for robust statistical assessment. An important area of studies of the modern economy is determining the type of economic growth. The shift-share method is applied to determine the effect of the impact of national, industrial and regional factors on the dynamics of economic growth. The shares of effects (effects of the impact) caused by national economy trends, industry mix and region-specific factors are identified and analyzed. The position of economic activities in the industry mix of the Kyiv economy is analyzed and assessed by indicators of gross value added and number of employees with consideration to three components. The impact of each of them caused by the national factors, the established industry mix of the national economy and the internal competitiveness of a specific industry of the region are characterized. Factor decomposition of the change in the indicators caused by the national component, industry-specific and region-specific effects reveals that the overall growth in the gross value added by economic activity in Kyiv is to a large extent conditional on the effective industry policy and to the least extent on regional factors. However, the employment reduction in the Ukrainian capital was caused by the impact of national and industry factors, and was not compensated by the positive local effect. It is revealed that the stable flagship position is taken by financial and insurance activities, in spite of recent reforms in the bank sector with cleansing the bank system from ineffective and nontransparent entities. Kyiv remains to be the core center for concentration of financial services. The progressive growth in the construction market meets the needs of the megalopolis with its increasing population. The residents’ desire to expand the dwelling size and improve the living conditions helps improve business climate in the construction sector, increase its growth rates and share in the gross regional product (indirectly, through the gross value added).       The section “Information and telecommunications” stands steadily on the top positions. Its rapid development, as a signal of the digital economy, enables for momentary exchanges of information and services on the domestic and external market, thus creating favorable prospects.   The analysis of the composition of the problem group and the outsider group among the economic activities reveals the stable presence of manufacturing and social industries. Enterprises of the sections “Manufacturing”, “Supply of electricity, gas, steam and conditioned air”, “Supply of water, sanitation, treatment of wastes” have a stock of problems and system drawbacks; they suffer from lack of investment and innovation, they have no strong orientation on the challenges of modernity and market needs, which weakens the positions of the Ukrainian capitals’ economy as the industrial center. It is proposed to use the graphic method for illustrating the distribution of economic activities in Kyiv by quality characteristics of operation. The factors accelerating or hampering the development of economic activities in the region are determined. Recommendations on management decisions related with future operation of industries referred to as “leaders”, “regulars”, problematic industries and outsiders are given.

scholarly journals Analysis of the Cobb-Douglas Production Function as a Tool to Investigate the Impact of FDI Net Inflows on Gross Domestic Product Value in Poland in the Period 1994–2012

2014 ◽  
Vol 5 (4) ◽  
pp. 169-190 ◽  
Author(s):  
Aneta Kosztowniak
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Production Function ◽  
Point Of View ◽  
Foreign Direct Investments ◽  
Fdi Inflows ◽  
Fixed Capital Formation ◽  
Empirical Point ◽  
The Impact ◽  
Douglas Production Function

The purpose of this paper is to analyse the impact of foreign direct investments net inflows on changes in GDP value in Poland in the period between 1994 and 2012 with the use of the Cobb-Douglas production function. The paper consist of five parts. Parts I and II present some aspects of the FDI influence on economic growth from the theoretical and empirical point of view. Part III defines conditions indispensable for the positive FDI impact on the economy of the host country. Part IV outlines changes of FDI flows in Poland in the period of 1994-2012. Part V includes the main assumptions of the Cobb-Douglas production function and an estimate of changes in GDP value for Poland in the period 1994–2012 with the use of the VECM. The factors significant for economic growth are also identified, including the significance of the net FDI inflows. Eventually, the effect of gross fixed capital formation, employment, FDI net inflows, exports and R&D on changes in the GDP value are determined.

scholarly journals The Impact of Economic Growth on the Dynamics of Enterprises: Empirical Evidence for Slovenia's Non-agricultural Sector

Organizacija ◽  
2010 ◽  
Vol 43 (4) ◽  
pp. 154-162 ◽  
Author(s):  
Dijana Močnik
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Empirical Evidence ◽  
Agricultural Sector ◽  
Value Added ◽  
Natural Rate ◽  
Entry Rate ◽  
The Impact ◽  
The Relationship

The Impact of Economic Growth on the Dynamics of Enterprises: Empirical Evidence for Slovenia's Non-agricultural SectorThe aim of this paper was to test the hypothesized U-shaped relationship between economic development and dynamics of enterprises. The dynamics of enterprises is influenced by the achieved economic development. This paper first analyzed the association between the regional gross value added (GVA) growth rate and different measures of enterprises dynamics from Slovenian data from 2000 to 2005. Our graphical analyses indicated that 1) the rate of gross entry and GVA growth rate were linearly and negatively associated; 2) the association between the rate of gross exit and GVA growth rate is best represented by the downward U-shape function (Ç); and 3) a U-shaped association exists between the rate of net entry and GVA growth rate. The size of the impact was estimated using the regression analysis between the net entries as dependent variable and GVA growth as independent variable that showed the best fit. According to the results, 1) economic growth significantly impacts net entries; 2) the hypothesized U-shaped relationship between net entries and economic growth was confirmed as the Slovenian net entries decrease until the GVA growth rate reaches 10% yet increase when the growth in GVA is higher than 10%; and 3) a ‘natural rate’ of entrepreneurship is to some extent governed by ‘laws’ related to the economic growth rate. The results further indicate that the average net entry rate should be increased by 0.787 units (%) as a result of a region's specific environmental factors. This research confirms the theoretical assumptions that have previously been sparsely tested empirically and even rarely supported by results. Therefore, our results represent a contribution to the robustness of the theoretical as well as empirical clarification of the relationship between entrepreneurship and economic development.

scholarly journals Impacts of Seaport Investment on the Economic Growth

2016 ◽  
Vol 28 (4) ◽  
pp. 365-370 ◽  
Author(s):  
Tahar Ammar Jouili ◽  
Mohamed Anis Allouche
Keyword(s):  
Economic Growth ◽  
Production Function ◽  
Growth Rates ◽  
Econometric Model ◽  
Public Investment ◽  
Economic Sectors ◽  
The Public ◽  
Economic Growth Rates ◽  
The Impact ◽  
Douglas Production Function

The aim of this paper is to estimate the impact of seaports investment on the economic growth. Seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments have been allocating a great amount of money to develop seaport infrastructures. However, the Tunisian economy witnessed fluctuations in the economic growth rates and decrease in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample was composed of Tunisia's economic sectors (manufacturing, services and agriculture) over the period 1983-2011. The results of the study show that the public investment in seaport infrastructures has apositive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaport investment infrastructure is the service sector. This paper aims to estimate the impact of seaports investment on the economic growth. The seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments were allocating a great amount of money to develop seaports' infrastructures. However, the Tunisian economy witnessed fluctuating in the economic growth rates and decreased in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample composed of Tunisia's economic sectors (manufacturing, services and agriculture) over the period 1983-2011. The results of the study show that the public investment in seaports' infrastructures has a positive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaports investment infrastructure is the services sector.

scholarly journals ECONOMIC GROWTH AND EMPLOYMENT IN AGRICULTURAL SECTOR ON POVERTY IN ACEH PROVINCE

TRIKONOMIKA ◽  
2019 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Reovasimulo Anakusara ◽  
Abd Jamal ◽  
Chenny Seftarita ◽  
Indra Maipita
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Negative Impact ◽  
Value Added ◽  
Poverty Rate ◽  
Series Data ◽  
Aceh Province ◽  
The Government ◽  
The Impact

This empirical study aims to analyze the impact of economic growth and employment in the agricultural sector on poverty in Aceh Province. The study is conducted on annual time series data for the period of 1995-2017 while to explain the research objectives used Autoregressive Distributed Lag (ARDL) model and Granger Causality. The results found, in the short term, only employment in the agricultural sector has a significant effect on poverty. Meanwhile, in the long term, economic growth has a profound and negative impact on poverty. On the contrary, the absorption of labor in the agricultural sector tends to increase poverty. In addition, the results obtained that economic growth has a unidirectional relationship with employment in the agricultural sector. It was, therefore, suggested that the government should prioritize economic development in regions that have relatively high poverty rate and build an agro-industry in Aceh to increase agricultural value added and also absorb more labor so it can enable to reduce the poverty rate.

scholarly journals Investment Improvement of Agricultural Sector in East Java

2019 ◽  
Vol 8 (4) ◽  
pp. 215-223
Author(s):  
Muryani Muryani
Keyword(s):  
Manufacturing Industry ◽  
Agricultural Sector ◽  
Positive Impact ◽  
Value Added ◽  
Economic Sectors ◽  
Gross Value Added ◽  
Analysis Technique ◽  
Industry Sectors ◽  
The Impact ◽  
Agricultural Demand

The Agricultural Demand Led Industrialization (ADLI) strategy can be considered effective because of the dominant amount of East Java land (74.11%) cultivated for the agricultural sector. This study aims to determine the relationship between the agricultural and manufacturing industry sectors; knowing the impact of the “Agricultural Demand Led Industrialization” (ADLI) strategy in the East Java economy; and knowing the elasticity of agricultural investment on output creation, gross value added, and income in East Java. This research uses the Input-Output (IO) analysis technique for all economic sectors in East Java, with an emphasis on the agricultural sector and processing industry in 1995-2010. The empirical results state that the ADLI Strategy has a positive impact on output creation and income in the East Java economy. The level of sensitivity /response from the output, gross value added, and income due to changes in investment value in the agricultural sector is relatively not much different.

Сobb-Douglas Production Function: Myth and Reality

2014 ◽  
Vol 3 (4) ◽  
pp. 54-60
Author(s):  
Юсим ◽  
Vyacheslav Yusim ◽  
Прокопьев ◽  
Aleksandr Prokopev
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Production Function ◽  
Economic Systems ◽  
Technological Factors ◽  
Definition Of ◽  
Impact Of Technology ◽  
The Impact ◽  
Douglas Production Function

The article considers the problem of assessing the impact of technology on the dynamics of economic development and critically evaluates the best-known production function — the Cobb-Douglas function, which is the basis of many models seeking to explain the sources of economic growth. Meanwhile the provision is argued that the methodological solution to this problem exists and reveals the essence of the author’s approaches to the definition of the role of technological factors in the development of economic systems.

scholarly journals The current state and trends in the formation of intersectoral relations in the agri-food complex of Ukraine

2020 ◽  
pp. 41-54
Author(s):  
O.O. Varchenko
Keyword(s):  
Food Industry ◽  
Agricultural Sector ◽  
Value Added ◽  
Agricultural Enterprises ◽  
Current State ◽  
Percentage Points ◽  
Gross Value Added ◽  
Business Entities ◽  
The Impact ◽  
Food Complex

The article considers the peculiarities of the formation of intersectoral relations in the agro-food complex of the country, taking into account their impact on the creation of value added by type of economic activity. The need to ensure the principle of equivalent intersectoral exchange and components that contribute to the increase of value added has been proved. It is established that during 2010-2018 the value of gross agricultural output in the prices of the reporting year increased 4.6 times, but in comparative prices in 2016 there was an increase of only 1.41 times, which is evidence of the impact of inflation. It is determined that the share of the processing industry in 2010-2018 in the structure of gross domestic product decreased by 5.8%, which is an unfavorable factor in terms of opportunities for value added. There was an increase in the share of agri-food exports in the structure of total exports compared to 2018 by 5 percentage points, the largest increase in supplies of crop products, which occurred due to the imbalance of relations between producers and processors of agricultural products. It is estimated that during 2010-2018 in agricultural enterprises gross value added increased 6 times, in households - 3.4 times. It is substantiated that there is an increase in the volume of unearned gross value added of business entities in the field of agriculture during the study period from the violation of the equivalence of intersectoral relations, which exacerbates the crisis in the industry. It is established that in basic prices the volumes of production of gross value added of the food industry increased for the period of 2000-2018 almost in 1,7 times, and with use of a deflator only by 50%. The growth of the share of GVA in trade in the overall structure of gross value added is proved, which indicates the strengthening of its role in the formation of value added of agri-food. The calculation of the change in the value of airborne forces using the deflator proves a slight increase, which suggests the effect of inflation on the value of the indicator. It is generalized that unfavorable conditions for the formation of gross value added due to inequality of exchange with the food industry and trade have been created for agriculture, which requires the introduction of the process of regulating the formation of gross value added of the agricultural sector. Keywords: intersectoral relations, agri-food chain, value added, agriculture, food industry, trade.

scholarly journals Effect of Ni(NO3)2 Pretreatment on the Pyrolysis of Organsolv Lignin Derived from Corncob Residue

Processes ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 23
Author(s):  
Wenli Wang ◽  
Yichen Liu ◽  
Yue Wang ◽  
Longfei Liu ◽  
Changwei Hu
Keyword(s):  
Sustainable Development ◽  
Fixed Bed ◽  
Value Added ◽  
Bio Oil ◽  
Fuels And Chemicals ◽  
Gas Products ◽  
Work Samples ◽  
Nickel Species ◽  
The Impact ◽  
Selective Formation

The thermal degradation of lignin for value-added fuels and chemicals is important for environment improvement and sustainable development. The impact of pretreatment and catalysis of Ni(NO3)2 on the pyrolysis behavior of organsolv lignin were studied in the present work. Samples were pyrolyzed at 500 ∘C with an upward fixed bed, and the characteristics of bio-oil were determined. After pretreatment by Ni(NO3)2, the yield of monophenols increased from 23.3 wt.% to 30.2 wt.% in “Ni-washed” and decreased slightly from 23.3 wt.% to 20.3 wt.% in “Ni-unwashed”. Meanwhile, the selective formation of vinyl-monophenols was promoted in “Ni-unwashed”, which indicated that the existence of nickel species promoted the dehydration of C-OH and breakage of C-C in pyrolysis. In comparison with “Water”, HHV of bio-oil derived from “Ni-unwashed” slightly increased from 27.94 mJ/kg to 28.46 mJ/kg, suggesting that the lowering of oxygen content in bio-oil is associated with improved quality. Furthermore, the content of H2 in gas products dramatically increased from 2.0% to 7.6% and 17.1%, respectively.

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