Formation of Indicators of the Development of Production Potential and the Level of Socio-Economic Development of the Region

Abstract

The functioning of any complex system is usually assessed by observable parameters that are obvious to the researcher. Depending on the complexity of the system, there can be a fairly large number of such parameters (indicators) that can be measured based on existing measurement systems (scales). This is especially true for complex socio-economic systems. In this regard, at least two main tasks arise: how to determine the state and dynamics of the entire system as a whole and what is the influence and mutual influence of the elements of the system among themselves. One of such complex elements is the production potential of the region, the state and dynamics of which cannot be directly assessed. Usually, to assess it, indices, regression relationships, and an assessment of its main components (primary indicators) are used. This article discusses an approach based on the assessment of production potential using indicators derived from factor analysis. Factor analysis makes it possible to reduce the number of observed features (indicators included in the assessment of production potential) by searching for a smaller number of hidden (latent) factors (we called them indicators). The same approach was used to search for indicators reflecting the socio-economic development of the region. The article also examines the impact of the level of development of production potential on the socio-economic development of the region. At the same time, primary statistical indicators processed using factor analysis were used as the basis of the evidence base. Identified indicators reflecting the development of individual components of production potential. A rating assessment of the regions of the Central Federal District was carried out according to the proposed indicators.