Substantiation of theoretical and methodological approaches to the determination of economic efficiency

Abstract

Relevance. An analysis of the problems of modern science and practice shows that the process of transition from one model of economic development to another, better one, implies the emergence of a number of phenomena characteristic of a market economy. For example, such a concept as “economic efficiency”. This concept is used by almost all business entities at different levels, since it allows quantitative and qualitative assessment of the condition of the object. Scientists from different times have studied this concept; accordingly, there are different interpretations and methods for determining economic efficiency. The works contain completely different interpretations of the concept under consideration, implying its different properties and elements. The situation is caused by the versatility and multidimensionality of this concept. Therefore, the formation of modern approaches to determining economic efficiency, which will sufficiently correspond to the general theory of performance management and modern requirements of the economy and society, is extremely necessary.The purpose is to substantiate theoretical and methodological approaches to determining economic efficiency.Objectives: consider the concept of “efficiency”; establish the relationship between “efficiency” and the concepts of “effect” and “effectiveness”; identify common and distinctive features of these concepts; determine the essence of economic efficiency; consider the main approaches to evaluating effectiveness.Methodology: comparative analysis, methods of induction and deduction, analysis and synthesis, logical analysis.Results. The article discusses the concept of “efficiency”, their relationship with the concepts of “effect” and “effectiveness”. The general and distinctive features of these concepts are established, the essence of economic efficiency is determined, and the main approaches to their assessment are considered.Conclusions. As a result of the work carried out, it was substantiated that economic efficiency consists of such elements as: the ability to assess the degree of achievement of the set goal, both from a quantitative and qualitative point of view; the need to use a systematic approach to calculate economic efficiency; taking into account the time factor and the limitation of all resources necessary to calculate economic efficiency.