Interaction Specifics Between Main Factors Of Grp Production (Russian Federation, Northern Russia)

Abstract

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Influence of Underutilization of Production Capacities on the Dynamics of Russian GDP: An Assessment on the Basis of Production Functions

“…The standard model is an exponential PF (a special case of the Cobb-Douglas function), where the factor inputs are the number of employees (labor) and the value of fixed assets (capital), and GDP or GRP is taken as output; estimated parameters are output elasticities of production factors. In our previous studies, we have repeatedly drawn attention to the absence or weakness of the relationship between the GRP of Russian regions-and the GDP of Russia-and the value of fixed assets (Baranov and Skufina 2021;Skufina et al 2020). This is consistent with the data of other researchers on the economy of Russia and its regions (Kirilyuk 2013).…”

“…For example, the values of variables were taken not in indices, but in millions of rubles, which is unacceptable in studies of economies, especially mining economies, when the same volume of output costs differently during different periods of time. The authors of this article in their research focusing on the GDP or GRP of the Russian economy did not use the value of fixed assets as capital, but rather the investments in fixed assets Baranov and Skufina 2021). This approach is also present in foreign studies (García-Belenguer and Santos 2013) However, the economic meaning of such models is different as they do not consider the accumulated capital, and fixed assets, in the production of GDP or GRP.…”