COBB-DOUGLAS PRODUCTION FUNCTION AS AN INSTRUMENT OF ECONOMIC GROWTH POLICY OF UKRAINE UNDER MARKEТ REFORMS
Abstract
The estimation of influence of accumulation factors, namely capital investment and number of employed in the national economy, on economic development of Ukraine under market reforms from 1996 to 2017 has been conducted. Cobb-Douglas production function has been used as a tool of current research because it covers assymetrical laws of production of goods and services, irregularity economic resource allocation between structural components of the national economy and, in that way, provides the most precise macroeconomic forecasts. The research of the influence of accumulation factors on economic growth of Ukraine using Cobb-Douglas production function has been conducted by four stages. At the first (preparing) stage of the research the author has specified Cobb-Douglas production function by lineared that and calculating corresponding differentials of the function. At the second (analytical) stage of the research the author has gathered all the needed statistics, namely capital investment in the Ukrainian economy and number of employed in the national economy, and logarithmized them. The all needed calculations have been made using program complex Excel 2016. Obtained results showed that capital investment positively influence on economic development of Ukraine, but number of employed in the national economy negatively affects on that process. At the third (project) stage of the research the author has made some recommendations on how to improve economic growth policy of Ukraine. On the author’s view, it must include improvement of investment climate and formation of qualitative human capital. Induction of national and foreign investment in machine-building, metal-working industry and food industry, implementation of «taxes off» for the science intensive enterprises as well as stimulation of save energy sectors and save resource sectors must be the key components of national investment policy of Ukraine. In turn, making the conditions for the development of informal and distance education for the youth, spreading of social education programs, support of talented youth and their start-ups must be the key components of state employment policy of Ukraine.
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