RESEARCH ON ECONOMIC GROWTH FACTORS USING THE COBB-DOUGLAS PRODUCTION FUNCTION

Abstract

Introduction. One of the goals of macroeconomic policy of any country is to achieve high economic results, improve the living standards of the population and satisfy their unlimited needs in conditions of limited economic resources, and solve the socio-economic problems of the country related to its economic development. Therefore, economic growth is important for Ukraine, as well as for other countries in the world, because it will give it the opportunity to develop, create a strong economy, and enter global business as a full-fledged competitor and partner.

Methods. In the research process, a historical-logical method was used, which made it possible to explore the essence of economic growth. Comparative analysis was used to compare approaches to the study of economic growth and to review publications. The study of GDP dynamics was carried out using the dialectical method. The study used statistical information from the State Statistics Service of Ukraine for the period 2010-2023. The main source of information is the section of the statistical yearbook "National Accounts of Ukraine" on the website of the State Statistics Service of Ukraine, which contains information on GDP and population.

Correlation-regression analysis was used to construct and analyze the Cobb-Douglas production function of GDP dependence on the volume of fixed assets and labor productivity in the form of a regression equation Y = 1489K0,13775 L0,93478, which provides an estimate of the strength of the relationship. The coefficient of multiple determination R2 is 0,992, which indicates the adequacy of the model to real reality. To assess the impact of economic factors on the country's economic growth, the econometric method of data testing in the Excel software package was used. The abstract-theoretical method was used in the formation of generalizations and theoretical conclusions.

Results. The conducted studies showed that among scientists there is no single scientific point of view on the theory of economic growth. This economic category is studied at both the micro and macro levels, which makes it possible to use various models to form effective strategies for economic growth of the economy, taking into account factors that will influence the development of the country in the long term.

The study, based on statistical information for the period 2010-2023, calculated the parameters of the Cobb-Douglas production function for Ukraine and justified the use of the values of the cost of fixed capital and labor productivity as parameters of this function.

The study showed the existence of a close causal relationship between GDP volume and the cost of fixed assets and labor productivity. GDP modeling was carried out using the Cobb-Douglas function, also comparing it with the actual values of Ukraine's GDP. The production function allows you to perform analytical calculations, determine the efficiency of using economic resources, the feasibility of their use in the production process, and also predict production volumes.

Discussion. The obtained research results can be used in the analysis of macroeconomic indicators of economic growth of Ukraine, as well as in the further use of not only the Cobb-Douglas functions in the study of production volume, and the use of the latest trends in economic growth using climate change, economic and financial risks, digitalization. It is necessary to pay attention to political and institutional changes and reforms that affect the dynamics of GDP. Ukraine should focus on the experience of developing countries, as it has all the resources to produce high-tech products in all industries and is focused on the development of technologies and automation, but the future depends on effective management, from investment in recovery, from partners, reforms regarding internal development and integration with the EU.