Labor Productivity Elasticity by Production Factors in the Central Federal District of Russia

Abstract

To identify the determinants of labor productivity, correlation between labor productivity and various indicators were evaluated, reflecting the influence of a wide range of socio-economic and innovative factors in the regions of Russia for 2015-2018. It has been established that many indicators characterizing socio-economic and innovative factors do not have a significant relationship with labor productivity and are multicollenarity (they have correlation relationships among themselves). For each year, according to statistics from the regions of the Central Federal District of Russia, econometric models constructed in the form of a well-known standard internal linear function - an analogue of the Cobb-Douglas production function. The obtained models testify to a positive impact on the labor productivity of the capital-labor ratio, the level of export, the level of income distribution inequality, the number of workers engaged in research and development, which indicates the contribution of science to the spread of new technological structures in the economy. A significant positive effect on labor productivity of income inequality testifies to the action in the country of economic mechanisms operating in developed countries.