Analysis of the multiplicative model of efficiency in industry based on an alternative approach

Abstract

In this work, based on the construction of models that can be used in an economic entity, the multiplier effects of output and prices in various sectors of the Kazakhstani industry are evaluated, conclusions are drawn about the effectiveness of the industrial production process in the economic system in terms of the formation of general effects and positive feedback. The multiplicative method of analysis is used to identify changes in the indicator and determine the factors influencing this change. The multiplicative scheme is a derivative of interrelated qualitative and quantitative indicators. However, as practice shows, at present it does not justify itself, and relies on the industrial and technological power of the industrial regions of the world. The greatest impact of the development of a multiplicative model of industrial efficiency is observed where there are opportunities for industrial development. An alternative approach to determining the effectiveness of indicators is aimed at artificially stimulating activity, endlessly improving the methods and techniques of analytical practice, and calculating constantly new indicators to support a multiplicative model. As a result, a more meaningful model of a multiplicative-additive-multiple type was obtained, which is of great reporting value, since it takes into account causal relationships between indicators. This model allows us to study how the return on equity affects sales, selling price, cost of goods sold, non-performing financial results, as well as the rate of capital movement.