RESEARCH OF FACTORS INFLUENCE ON ECONOMIC GROWTH USING ECONOMETRIC MODELING

Abstract

The article examines current models of economic growth that allow for a deeper understanding of the processes of economic development. The factors that influence GDP changes are analyzed and summarized. Economic growth models are systematized, taking into account such factors as capital intensity, labor productivity, human capital, technological progress, demographic changes, the population aging index, investments, and foreign trade. It is found that in models that take into account human capital, labor productivity depends on the level of education and qualifications of the workforce, which has a long-term effect on the country's competitiveness. It is also found that economic growth depends on demographic changes, such as population aging and the birth rate. According to modern models, economic growth depends on the level of investment, the development of foreign trade, and technological progress. Investments in the latest technologies and support for innovation are important for increasing productivity and competitiveness in the global market. At the same time, demographic changes can negatively affect the economy, so to compensate for the effects of aging, it is necessary to increase labor productivity through innovation and improving the level of education. Analysis of modern models helps to formulate effective strategies to stimulate economic growth, taking into account both domestic and global factors that affect the long-term development prospects of countries. Using econometric analysis, the Cobb-Douglas production function was constructed, which allows us to assess the impact of capital and labor productivity on Ukraine's GDP. Based on regression-correlation analysis, the adequacy of the model was proven, and based on elasticity coefficients, it was established that the main factor of influence is labor productivity. Given the results of the study, the need to direct economic policy to stimulate technological innovations, automate production processes, and increase labor efficiency, which will contribute to the long-term development of the Ukrainian economy, is substantiated.