scholarly journals CONCEPTUAL PRINCIPLES OF EVALUATION OF ACTIVITIES OF ENTERPRISES AND THEIR CAPITALIZATION BASED ON VALUE ADDED

2018 ◽  
Vol 20 (3(68)) ◽  
pp. 155-164
Author(s):  
YU.A. NAZARENKO
Keyword(s):  
Gross Domestic Product ◽  
Economic Activity ◽  
Value Added ◽  
Point Of View ◽  
Gross Regional Product ◽  
Conceptual Basis ◽  
Gross Value Added ◽  
Main Indicator ◽  
Adequate Representation ◽  
Regional Product

Topicality. In today's financial and economic analysis of the company's main indicators are output and profit, but they have significant disadvantages. The indicator "output" includes the results of the activities of suppliers of goods and services and, accordingly, does not provide adequate representation about the results of the enterprise itself. And the indicator "profit" reflects the interests of only the owners of the enterprise. Its use encourages lower wages, social security financing and employee training, and also indicates a contradiction between the interests of society and the owners of enterprises. All this determines the relevance of the definition of indicators that will ensure an adequate representation of the results of the enterprise and a single conceptual framework for assessing the results of economic activity at the micro, mega and macro levels. Aim and tasks. Analyze the existing indicators of assessing the effectiveness of the enterprise, to determine their main disadvantages. Consider the possibility of using the indicator �gross value added� as the main indicator of an enterprise. Conduct a comparative analysis of the possibility of using different variants of the indicator �value added� to assess the performance of an enterprise. Consider using the indicator �gross value added� as a conceptual basis for evaluating the economic activities at the micro, mega and macro levels.. Research results. As the main indicators of the enterprise, using "output" and "profit". The first indicator consists of gross value added and intermediate consumption. The latter is the result of the activities of other enterprises. In this case, the external contribution can be decisive, and therefore the indicator "output" does not provide adequate representation of the results of enterprises. Another key indicator of enterprise activity is profit. At orientation to it, payment of labor, financing of social security and training of employees is the cost of the enterprise and the less they are, the greater the profit of the enterprise. But in modern conditions, in order to ensure sustainable economic development of a separate enterprise and the country as a whole, it is important to consider that hired workers are carriers of intellectual capital. Loss or reduction of this capital may lead to more significant losses than loss of physical and financial capital. Under such conditions, it is advisable to use the indicator "gross value added" as the main indicator of the effectiveness of the enterprise. Based on this indicator, the main result of the country's economic activity (gross domestic product) and regions (gross regional product) is determined. Gross value added is a very important indicator in terms of meeting the needs of all stakeholders in the productive activity of the company's: employees, owners of the enterprise, the state. The "gross value added" indicator is the main indicator of the company's activities from the point of view of the interests of the whole society, and the indicator "profit" is the main one from the point of view of the owners of the enterprise. The presence of these two indicators reflects the contradiction between the interests of society and the owners of enterprises. The use of the indicator "gross value added" as the main indicator of the company's activity provides a single conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. The study of literary sources suggests the use of different indicators "value-added" to assess the performance of the enterprise. The greatest recognition was given to the "Economic Value Added" (EVA), "Shareholder Value Added " (SVA) and "Market Value Added" (MVA). According to the results of the analysis of these indicators, it was concluded that their general disadvantage is that they reflect the interests of the owners of the enterprise, and not society. Conclusions. Gross value added has a greater analytical value than profit, because, firstly, it gives a more adequate representation of the results of enterprises, and secondly, it determines the potential for capital accumulation. The use of this indicator provides a single conceptual framework for assessing the results of economic activity at the micro, mega-and macro level, since gross domestic product (GDP) and gross regional product (GRP) consist of the gross value added of all institutional units (residents), respectively, of the country and region.

scholarly journals GROSS VALUE ADDED AS THE MAIN INDICATOR PRODUCTIVITY OF ENTERPRISES

2020 ◽  
Vol 22 (2(75)) ◽  
pp. 25-33
Author(s):  
V.F. GORYACHUK ◽  
Y.A. NAZARENKO
Keyword(s):  
Economic Activity ◽  
Capital Accumulation ◽  
Value Added ◽  
Business Owners ◽  
Conceptual Basis ◽  
Important Indicator ◽  
Gross Value Added ◽  
Main Indicator ◽  
Adequate Idea ◽  
Regional Product

Topicality. Traditionally, output and profit are used as the main indicators of enterprise productivity, but they have significant shortcomings. All this determines the relevance of the search for new indicators that will provide an adequate idea of the productivity of enterprises and a single conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. Aim and tasks. To analyze the existing indicators for assessing the productivity of enterprises, to identify their main short comings. Consider the experience of the Republic of Belarus in the use of gross value added as an indicator of productivity of enterprises. Justify the use of gross value added as a conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. Identify the main indicators for assessing the productivity of enterprises on the basis of gross value added. Research results. As the main indicators of the enterprise, use "output" and "profit". The first indicator consists of gross value added and intermediate consumption and therefore it depends on the performance of other enterprises. In this case, the external contribution can be decisive and therefore the indicator "output" does not give an adequate idea of the productivity of enterprises. Another key indicator of enterprise activity is profit. With a focus on it, wages, social security financing and employee training are the costs of the enterprise and the smaller they are, the greater the company's profits. But in modern conditions to ensure sustainable economic development of the individual enterprise and the country as a whole, it is important to consider that employees are carriers of intellectual capital. The loss or reduction of this capital can lead to more significant losses than the loss of physical and financial capital. Under such conditions, it is advisable to change the benchmark, namely the use of gross value added as the main indicator of productivity of the enterprise. It is on the basis of this indicator that the main result of economic activity of the country (gross domestic product) and regions (gross regional product) is determined. Gross value added is a very important indicator in terms of meeting the needs of all stakeholders in the performance of the enterprise: employees, business owners, the state. The indicator "gross value added" is the main indicator of the enterprise in terms of the interests of society as a whole, and the indicator "profit" - the main in terms of the interests of business owners. The presence of these two indicators reflects the contradiction between the interests of society and business owners. Conclusion. Gross value added has a greater analytical value than the indicators "output" and "profit", because, firstly, it gives a more adequate picture of the results of enterprises, secondly, it determines the potential for capital accumulation and thirdly provides a single conceptual basis for evaluation of economic performance at the micro, mega and macro levels.

scholarly journals The Use of Economic and Mathematical Modeling in Assessing the Competitiveness of Tourism Industry Enterprises

2020 ◽  
Vol 17 (6) ◽  
pp. 43-53
Author(s):  
S. N. Medvedeva ◽  
V. P. Pavlyuk
Keyword(s):  
Mathematical Modeling ◽  
Economic Growth ◽  
Growth Rate ◽  
Software Package ◽  
Value Added ◽  
Tourism Industry ◽  
Gross Regional Product ◽  
Gross Value Added ◽  
Tourism Potential ◽  
Regional Product

Purpose of research. Tourism is the most important object in the system of modern economic relations. Its main goal is to create an environment conducive to meeting the needs of tourists, which ensure a steady flow of funds. In turn, the economic subsystem solves the problem of creating a competitive tourism industry – the most important determinant of economic growth. Therefore, the study of the competitiveness of the tourism industry market in ensuring sustainable economic growth of the state and increasing the well-being of the population is an extremely relevant direction in a market economy.At the moment, many international, domestic methods are used to assess the level of competitiveness (competitive opportunities). Methodological support for a comprehensive assessment of the competitiveness of tourism industry enterprises based on economic and mathematical models requires further development. An algorithm for assessing regional competitiveness is given on the example of building an econometric model, and testing it for its practical significance.The purpose of our study is to identify the factors affecting the increase in the level of competitiveness of the tourism potential of the Sevastopol region to ensure a sustainable influx of tourists.Materials and methods. The study of the level of increasing competitiveness based on the use of economic and mathematical modeling in the regional aspect is carried out. The «Gretl» software package was used as a statistical tool for the study. The study of the level of competitiveness in the field of the tourism industry in the Sevastopol region is carried out on the basis of a sample of 50 enterprises of the tourism industry, determined by the rating of the volume of gross revenues received per year. To model the share of the gross value added of the tourism industry in the gross regional product at the regional level, we considered the annual financial and economic data of the activities of travel companies, as well as the macroeconomic indicators of the Sevastopol region from 2015-2019. The processing of economic and financial indicators characterizing the micro- and macroeconomics, identification and interpretation of the model is made using computer technologies, in particular the Gretl software package.Results. According to the results of the study, the nature of the relationship between the share of the gross value added of the tourism industry in the gross regional product and the consumer price index, the growth rate of retail turnover, the growth rate of public catering turnover, and the quantity of registered crimes was revealed. Economic and mathematical modeling was carried out using various approaches to constructing the equations of the general model by the least squares method, with fixed or random effects.Conclusion. The article discusses the modeling of competitive advantages in the tourism industry, which makes it possible to determine the significant parameters of independent variables, and it was also proposed that the model with fixed effects is the most adequate for predicting the tourism potential of the Sevastopol region.It should be noted that it is almost impossible to achieve an increase in competitiveness by chance. Therefore, a set of methods and techniques is needed that form an innovative competitiveness management system. The implementation of such a system is directly related to the analysis and assessment of the whole variety of conditions and factors for the functioning of the subjects of the tourism industry.

scholarly journals The small and large business interaction within national economy’s gross added value reproduction in Ukraine

2018 ◽  
Vol 9 (3) ◽  
pp. 403-417 ◽  
Author(s):  
Sergei Kalchenko ◽  
Natalia Trusova ◽  
Diana Hrybova ◽  
Biliaiev Serhii
Keyword(s):  
Small Business ◽  
Labor Productivity ◽  
Economic Activity ◽  
Value Added ◽  
Added Value ◽  
Business Sector ◽  
Macroeconomic Conditions ◽  
Gross Value Added ◽  
Employment Share ◽  
Main Indicator

Research background: The main background of this article is the thesis that sectors of small business and large business respond differently to shifts in macroeconomic conditions. Purpose of the article: This article is devoted to empirical evidence whether there are signs of small business ability to compensate for negative trends, emerging in the sectors of large and medium-sized business in Ukraine. Methods: The dynamics of gross value added was chosen as the main indicator of small business potential to create compensatory effect for reduction in employment, share of value added and GDP, observed in sector of large and medium-sized business. For factor analysis of actual gross added value dynamics, the authors have built a multiplicative term, which expresses the different characteristics of economic activity in small, large and medium-sized business impact on the gross added value dynamics. The authors have also evaluated the specific impact of these factors using the method of chained substitution. Findings & Value added: The results obtained by factors analysis did not prove the thesis about small business capacity to compensate for the negative trends observed in the sector of large and medium business. The trend of economic activity in small business sector, trend of labor productivity, and trend in dynamics of added value share in small business output were causes of gross value added decreasing in the national economy during the period researched. These results can be interpreted as a sign that in case of unchanged quality indicators of economic activity in small business sector (in the first turn, the labor productivity and share of value added in output) this sector ability to compensate for negative trends in large business will be very doubtful.

Estimation of economic specialization of Ukrainian regions in the context of global trends

2019 ◽  
pp. 24-31
Author(s):  
Svitlana Ishchuk ◽  
Lyubomyr Sozanskyy
Keyword(s):  
National Economy ◽  
Economic Activity ◽  
Commodity Prices ◽  
Value Added ◽  
High Tech ◽  
Agricultural Commodity ◽  
Macroeconomic Factors ◽  
Gross Value Added ◽  
Its Regions ◽  
Economic Specialization

The scale and deep heterogeneity of the national economy of Ukraine in the regional context make the relevance of scientific research in this thematic area. The purpose of the article is to determine the economic specialization of the regions of Ukraine by key economic activities contributing to the formation of gross value added, as well as outlining the potential risks to the national economy, taking into account the situation on world commodity markets. The results of the research showed that one of the consequences of the unstable dynamics of industrial production in Ukraine under the influence of geopolitical and macroeconomic factors is the reduction of industrial specialization of the economy of a number of Ukrainian regions. Thus, in 2017 the manufacturing was the leading economic activity (with the highest share in the gross value added created) in 11 regions, compared to 15 in 2012. So Poltava, Donetsk, Dnipropetrovsk and Zaporizhzhya regions are considered to be “highly industrial”. At the same time, the agrarian specialization of the economy of Ukraine and its regions deepened – in 2017 agriculture became the leading type of economic activity in 11 regions (compared to 7 in 2012). The most “agrarian” in Ukraine (with a share of agriculture in gross value added over 30%) in 2017 became the Kherson, Kirovohrad and Khmelnytsky regions. Increasing the level of “agrarianization” of the national economy in the context of volatility of agricultural commodity prices on the world markets poses significant risks for the socio-economic development of Ukraine and its regions. These risks are exacerbated by the high amplitude of fluctuations in the volume and structure of domestic agricultural products and the low degree of processing of raw materials. To improve the structure of domestic commodity exports (in the direction of increasing its share of products with a higher degree of processing) and to deepen its diversification, a number of measures should be carried out aimed at stimulating export activity of enterprises (industrial and agro-industrial), carrying out technical and technological re-equipment of industrial and export production bases, creation of new high-tech industries on the basis of the implementation of powerful innovation and investment projects.

SHORTCOMINGS OF COMMONLY USED METHODS OF MEASURING THE ECONOMIC ACTIVITY OF THE COUNTRY

2021 ◽  
Vol 9 (1) ◽  
pp. 101-111
Author(s):  
Łukasz Wojciechowski ◽  
Tomasz Wołowiec
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Economic Activity ◽  
Well Being ◽  
The State ◽  
Point Of View ◽  
Level Of Education ◽  
State And Society ◽  
State Of The Environment

The article analyzes the flaws of the classical measures of economic growth. It is based on the assumption that, while not questioning the quality of the GDP indicator as a tool for measuring economic activity, it points out that the way this indicator is constructed influences the actions of governments, citizens and other actors, affecting also non-productive areas. What we measure affects what we do - if production is measured, then the criterion determining the success of the state and society will be the growth of production, and not the level of education, health or state of the environment. Gross domestic product in many cases includes production that, from the point of view of the community, indicates unfavorable processes. These are the so-called anti-goods, i.e., phenomena that increase GDP, although they worsen well-being and are socially undesirable).

Estimating the direct contribution of tourism to Rwanda’s economy: Tourism satellite account methodology

2019 ◽  
Vol 20 (3) ◽  
pp. 259-271
Author(s):  
Pius O Odunga ◽  
Geoffrey Manyara ◽  
Mark Yobesia
Keyword(s):  
Gross Domestic Product ◽  
Informal Sector ◽  
Value Added ◽  
Capital Formation ◽  
Tourism Industry ◽  
Fixed Capital ◽  
Domestic Product ◽  
Gross Value Added ◽  
Fixed Capital Formation ◽  
Economic Contribution

The tourism industry is poised to command a significant role in the economy of Rwanda, a low-income developing country that is rapidly transforming into a service-oriented economy. However, the industry does not exist as a distinct entity in a country’s national accounts leading to difficulties in estimating its role. Besides, the existence of a significant informal sector aggravates the situation. This study used tourism satellite accounts approach to estimate the economic contribution of tourism. Using primary data from various tourism surveys, six core tables of the tourism satellite accounts framework are presented to estimate the direct economic contribution of tourism to Rwanda’s economy in 2014. In this year, a total of 1,219,529 international tourists visited the country while 560,000 residents took part in domestic tourism trips resulting in internal tourism expenditure/consumption amounting to RWF 261.2bn. This generated an estimated RWF 197.5bn as gross value added by the tourism characteristic industries. Direct tourism gross value added was estimated at RWF 120.0bn while direct tourism gross domestic product, a measure of the direct effects of internal tourism consumption on gross domestic product of the economy was computed at RWF 128.3bn (or 2.5% of Rwanda’s gross domestic product) in the year. In addition to the core six tourism satellite accounts tables, the levels of tourism employment (about 89,000 jobs) tourism gross fixed capital formation (slightly over RWF 200bn) and tourism collective consumption (over RWF 7bn) were estimated. Under this study, the international methodological recommendations on tourism satellite accounts were implemented for Rwanda. The contribution of tourism to gross domestic product, employment, investment, and collective consumption was quantified and estimated. Informal sector tourism activities were included in these estimates. Gross fixed capital formation and collective consumption estimates are tentative due to conceptual considerations documented by the methodological framework.

scholarly journals Alternative factor analysis of the science intensity of the invested capital in the Baikal region

2018 ◽  
Vol 212 ◽  
pp. 08015
Author(s):  
Evgeny Filatov
Keyword(s):  
Factor Analysis ◽  
Russian Federation ◽  
Economic Activity ◽  
Baikal Region ◽  
Gross Regional Product ◽  
Scientific Center ◽  
The Russian Federation ◽  
Regional Product ◽  
The Impact ◽  
Science Intensity

Factor analysis is the basic tool when conducting a comprehensive analysis of economic activity. In the factor analysis, the major attention is given to the research of internal reasons that form the specificity of the phenomenon under study and identification of generalized factors standing behind relevant specific indicators. The article deals with the analysis of the science intensity of the invested capital in the Baikal region of the Russian Federation. Science intensity is an important parameter for determining the efficiency of the economic activity. The author introduced into scientific circulation the following indicators: the science intensity of the invested capital, the science intensity of the gross regional product and the investment return of the gross regional product. The paper reveals the influence of factors affecting the change in the science intensity of the invested capital in the Baikal region of the Russian Federation, and provides methodological approaches to its calculation. The article presents the author’s analytical and systematized statistical material for the analysis of the key indicators revealing the impact of the invested capital in the Baikal region of the Russian Federation on the change of the science intensity. The research has been carried out in the framework of the scientific project of the Irkutsk Scientific Center of the Siberian Branch of the Russian Academy of Sciences No. XI.174.1.4 “Activation of the internal development potential of regions of the resource specialization (on the example of the Baikal region)”.

scholarly journals ANALYSIS OF SAMARA REGION TAX POTENTIAL BASED ON ECONOMIC ACTIVITIES

2020 ◽  
pp. 12-18
Author(s):  
V. Y. Anisimova ◽  
D. V. Yudakhina
Keyword(s):  
Economic Activity ◽  
Gross Regional Product ◽  
Economic Activities ◽  
Simple Method ◽  
Tax Revenues ◽  
Regional Product

The article is devoted to the analysis of Samara region tax potential in the context of the main types of economic activity. The analysis is based on one of the methods for tax potential assessment - a simple method based on the gross regional product. The analysis of tax revenues and tax liabilities related to the main types of economic activity was carried out.

A systems-based approach to forecasting gross regional product using the inter-industry balance model

2020 ◽  
Vol 8 (8) ◽  
pp. 1602-1614
Author(s):  
G.N. Okhlopkov
Keyword(s):  
Mathematical Modeling ◽  
Economic Activity ◽  
Balance Model ◽  
Gross Regional Product ◽  
The Republic ◽  
Regional Product

Subject. This article explores the issues related to the system of indicators of forecasting of gross regional product and their relationship. Objectives. The article aims to justify the appropriateness of using a systems-based approach when forecasting gross regional product, based on the inter-industry balance model. Methods. For the study, I used the techniques of mathematical modeling in economics. To verify the accuracy of the forecast calculations, retrospective forecasts of the gross regional product of the Republic of Sakha (Yakutia) for 2017–2018 were carried out. Results. The article presents a developed classification of significant types of economic activity to forecast gross regional product. Conclusions. The use of a systems-based approach in the forecast calculations of gross regional product using the inter-industry balance model provides adequate forecast results.

Assessment of contribution by corporate structures of the construction business to the economic development of territories

2020 ◽  
Vol 22 (5) ◽  
pp. 45-50
Author(s):  
SERGEY V. RAEVSKY ◽  
◽  
LYUBOV A. BELYAEVSKAYA-PLOTNIK ◽  
ANDREY A. ROMASHIN ◽  
◽  
...  
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Regression Models ◽  
Value Added ◽  
Gross Regional Product ◽  
Effective Management ◽  
Regional Administration ◽  
Regional Product ◽  
The Right ◽  
Selection Of

The article considers the development of methodology for assessing the contribution of corporate structures of the construction business to the economic development of territories. In the article, a specific theoretical approach is used, i. e. when choosing the instruments of regional administration, it is required to use precisely those, which with a minimum impact will lead to maximum effectiveness. When working on this hypothesis, appropriate estimates are used to assess the contribution of large corporate structures of the construction business to the creation of the Gross Regional Product with the usage of correlation- regression models. The adoption of effective management decisions to a large extent depends on the selection of the right areas of impact on those types of businesses that form the largest share of value-added. This approach allows us to highlight the tools to support the corporate structures of the construction business in developing the economic policy of the region.

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