MATHEMATICAL ANALYSIS OF “TOTAL FACTOR PRODUCTIVITY” AS AN INDICATOR OF ECONOMIC GROWTH

Анотація

The article examines the economic and mathematical content of total factor productivity (Total Factor Productivity, TFP) and its role in ensuring long-term economic growth. Theoretical approaches to determining productivity in the economy are considered and the advantages of using the TFP indicator as an integral indicator of the efficiency of using production resources are substantiated. It is shown that, unlike traditional indicators of labor or capital productivity, TFP takes into account the cumulative impact of all factors of production and reflects the effectiveness of theirrepresentation of TFP within the framework of a Cobb-Douglas type production function, where the total productivity indicator acts as a residual component that characterizes the impact of technological progress, innovations, organizational changes, and institutional factors. Particular attention is paid to the analysis of the main determinants affecting the dynamics of TFP, including technological development, human capital, investment in research and development, infrastructure development, the quality of the institutional environment and the level of integration into the world economy. It is determined that these factors form the prerequisites for increasing the efficiency of resource use and ensuring sustainable rates of economic growth. It is concluded that the use of methods of economic and mathematical analysis allows for a more accurate assessment of the impact of individual factors on economic development and the formation of effective management decisions both at the level of state economic policy and at the level of enterprises. Increasing the total productivity of production factors is considered as one of the key mechanisms for ensuring innovative development, increasing the competitiveness of the economy and achieving long-term economic growth. interaction in the process of creating an economic product. The paper considers the mathematical

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