Assessment of multifactor productivity based on empirical data in the agricultural sector of the economy of Ukraine

Abstract

The importance of the expanded interpretation of the economic category “productivity” with the help of the index of “total factor productivity” and “multifactor productivity” has been revealed. The index approach was used to estimate the correlation between the total factor productivity and the cost of resources. The dynamics of the level of total factor productivity of agriculture in Ukraine was shown, which reflects the reduction of the effectiveness of the agrarian sector while increasing the volume of production in absolute terms. A set of factors that influence the productivity of agricultural production was offered. To substantiate the reasons reduced total factor productivity analyzed the dynamics of partial factor productivity, which indicates an increase in labor inputs and soil moisture regime. The approach to the expanded treatment of the economic category “productivity” with the introduction of such notions as “total factor productivity” and “multifactor productivity” has been stated. The methods and approaches to an estimation of multifactorial productivity (MFP) are systematized. A review of the factors and reasoning behind the decline in total factor productivity is provided. Dynamics are investigated and the basic factors of influence on increase of MFP, in particular in agrarian sector of economy of Ukraine are defined.