Modeling the Volume of Production in Small and Medium Enterprises in the Regions of Russia

Abstract

The object of the study is the consideration of all small and medium enterprises (SMEs) that are located in each of the regions of Russia. The purpose of the research is the evaluation of two-factor production functions that describe the dependence of the production volume of SMEs from the wage of employees and the fixed assets. The data for this reaseach was obtained from the official statistical observation of activities of all Russian SMEs in the 82 regions of Russia for 2015.The study allowed to determine the factors influencing turnover of SMEs located in all regions, to prove the high quality of approximation of the initial data by the two-factor production functions. The functions which were determined show that the economy of the regions of the country have not yet reached a saturation point with the goods and services of SMEs, and that they have increasing returns of scale in production in addition to considerable reserves for further development. Because sum of the degree values in the coefficients of the production functions is more than 1 and with the increase of both factors production growth is faster than the factors growth. The results of the study, namely new knowledge and tools for assessing production activities of small and medium enterprises in the regions, are of scientific and practical importance. They can be used by government and regional authorities to monitor the efficiency of investment in fixed assets and work resources, as well as the implementation of the Federal strategy for SMEs development for the period up to 2030. The methodology that were used in the research process can be applied to similar researches in countries with a significant amount of territorial (administrative) units. JEL Classification Numbers: L26, C31; DOI: http://dx.

Performance of Manufacturing MSEs in Bali Amidst the Covid-19 Pandemic

“…the Cobb-Douglas production function to the data obtained from the Yearly Micro and Small Manufacturing Industry Survey (Survei IMK Tahunan), 2019 and 2020, conducted by BPS Province of Bali. This model has been widely used to measure the performance of technical efficiency on many fields, e.g.enterprises (Walujadi, 2004;Bohorquez & Esteves, 2008;Mahmood, 2008;Radam, Abu, & Abdullah, 2008;Barbera & Moores, 2013;Hartšenko & Sauga, 2013;Charoenrat, 2014;Noor & Siang, 2014;Prastiwi, Ayutyas, Ayunigtyas, & Saputri, 2017;Pinkovetskaia, 2018;Dagvadorj & Bo, 2019;Mbusya, 2019;Ouedraogo & Gansonre, 2020;Thuy, Le, Cuong, & Thi, 2020;), banks (Hasan, Kamil, Mustafa, & Baten, 2012;Hossain, Hossain, & Baten, 2016;Agustina, Sholihin, & Fithria, 2019;), agriculture (Trujillo & Iglesias, 2013;Mango, Makate, Hanyani-Mlambo, Siziba, & Lundy, 2015;Najjuma, Kavoi, & Mbeche, 2016;Umar, Girei, & Yakubu, 2017;Hakim, Haryanto, & Sari, 2020;Tenaye, 2020;Yilmaz, Gelaw, & Speelman, 2020;Vasyl'yeva, 2021), and macroeconomic indicators (Apostolov, 2016;Izgi et al, 2020). The total revenue would be modeled with the production inputs or factors relevant to the technical efficiency of the enterprise, such as fixed capital and labor.…”