Cobb-Douglas Research Articles

Artificial intelligence’s (AI’s) role in enhancing tax revenue, institutional quality, and economic growth in selected BRICS-plus countries

Abstract The BRICS countries, comprising Brazil, Russia, India, China, and South Africa, aim to achieve United Nations Sustainable Development Goal 8, which emphasizes sustainable economic growth. This study adds to the empirical literature by examining the impact of tax revenue and institutional quality on economic growth, incorporating the role of artificial intelligence (AI) in selected BRICS-Plus countries (the above-mentioned five countries) from 2012 to 2022. Utilizing the innovative Cross-Sectional Augmented Autoregressive Distributed Lag estimation technique, the analysis reveals a long-run equilibrium relationship among the variables. The study employs a modified Cobb–Douglas production function for its theoretical framework. The results indicate bidirectional causality between tax revenue and AI, economic growth and institutional quality, as well as institutional quality and tax revenue. Based on these findings, the study recommends that BRICS governments and policymakers enhance the integration of AI into tax systems to promote growth in both the short and long terms. However, it also advises caution regarding the interaction between AI and institutional quality, which did not support economic growth. While the AI and tax revenue interaction shows promise for fostering growth, robust measures are necessary to mitigate potential negative effects from AI’s interaction with institutional quality. Consequently, the study advocates for the development of AI-friendly institutional policies in BRICS countries, considering the dynamic and rapidly evolving AI sector.

South Africa and BRICS: Assessing the Flying Geese Strategy as a Re-Distributional Mechanism for Inclusive Economic Gains

Almost a decade and a half has passed since South Africa joined BRICS in 2010 and it is yet to reap the full economic benefits and advantages which it was promised. For this reason, this article assesses the extent to which the ‘Flying Geese’ model can assist South Africa, as a late comer to BRICS, to catch up with the other members within the grouping by expanding its market presence. It will do so by examining the GDP composition of each of the original BRICS member states between 2010 and 2022 in order to identify which labour-intensive economic activities may be passed down from the so-called “lead goose”, being China, to the latecomer, South Africa. It will analyse the extent to which BRIC nations have shifted its production from consumer to capital goods and whether this is reflected in the grouping’ sexports, as suggested by the Flying Geese model. The article will also make brief use of the Cobb-Douglas production function to showcase the relationship between output and production inputs within BRICS. This article earmarks the textile manufacturing industry as one such sector for consideration. Textile manufacturing activitiesare already being relinquished from China to India, and indeed a newcomer, Ethiopia. It provides recommendations and caveats for the plausible adoption of this development strategy for the BRICS+ group as a means to strengthen South Africa’s manufacturing base, and thereby help address its pressing socioeconomic concerns of high youth unemployment, poverty and underdevelopment.

Farming Technology and Allocative Efficiency of Rice Production Factors in Kulon Progo Regency

The regency of Kulon Progo, located in the western part of Yogyakarta Special Region, owns the lowest ratio of paddy fields relative to arable land, i.e., 0.27%, compared to other regencies in the region. Effective management of paddy farming technology is crucial to enhance productivity. This research aims to describe the management of rice farming technology and to analyze the allocative efficiency of rice production factors in Kulon Progo. The study employs cross-sectional data collected through observations and surveys using an open-ended questionnaire. The sampling method used is proportional stratified random sampling, with a total of 105 respondents, of which 55 from Panjatan Sub-district and 50 from Sentolo Sub-district. Data analysis methods include quantitative descriptive, multiple linear regression with the Cobb-Douglas production function, and calculation of allocative efficiency index (Ki) tested with the one-sample Wilcoxon test. The findings show that the majority of farmers use superior Ciherang seed varieties, insecticides for pest control, and adopt the rice cultivation method known as "jajar legowo". Moreover, a significant number of farmers have not yet adopted combine harvesters due to landscape unsuitability. Key production factors affecting rice output include land area, seed quantity, fertilizer application, farming experience, hybrid variety adoption, technical irrigation use, and combine harvester utilization. Allocative efficiency analysis reveals non-efficient land allocation, suggesting a need for land-use reduction. Meanwhile, seeds and fertilizers use are inefficient, warranting more allocations of these inputs.

Measuring economic growth factors: Dynamic trends and prospects

Subject. The article is devoted to measuring the factors of economic growth. Objectives. The purpose is to identify and measure economic growth factors in Russian regions. Methods. To analyze economic growth, the study employs the apparatus of production functions. The toolkit is based on the Cobb–Douglas production function, which, with the help of some transformations, takes a dimensionless form, namely, the resulting indicator is the growth of gross regional product, and the index of physical investment growth and employment growth in the region act as independent factors. Results. We built production functions for regions of the Central Federal District, analyzed changes in production functions for individual groups of regions. Conclusions. The findings of our research of production functions of regions of the Central Federal District for 2010–2022 showed less uniformity in parameters compared with the study of 2000–2009. Investments yield less return. The mechanisms of the classical theory of economic growth do not work as effectively as 15-20 years ago. The main economic growth depends on the amount of labor employed in the economy. The shortage of employees can be overcome only by changing the economic structure, intensification of mechanization processes, and robotization of production.

Sector trends of total factor productivity: where is the growth potential?

Objective: to identify industry trends in aggregate factor productivity, labor productivity and capital productivity in economic sectors. The hypotheses are: there is a continuing slowdown in aggregate factor productivity in the Russian economy sectors; there is a gap in aggregate factor productivity in various complexes of industries. Methods: Cobb–Douglas production function, multiple regression, Domar aggregation, Gini coefficient, graphical visualization. Results: the study revealed a more efficient use of labor resources in contrast to capital, the latter being accumulated everywhere. The highest increase in labor productivity was noted in financial and insurance activities, manufacturing industries, professional, scientific and technical activities. There is a cyclical dynamics of aggregate factor productivity, its most stable growth and a positive cumulative technological shift marked from 2017 until 2021. They are observed in the manufacturing and investment complexes of the Russian economy (financial and insurance activities), and in agriculture.A decrease in total factor productivity was found in the mining industry, transportation and storage, hotels and catering, construction, education, and healthcare. Scientific novelty: it consists in a change in the total factor productivity and the total technological shift in the context of sectors and complexes of sectors of the Russian economy from 2011 to 2021. Practical significance: the study results can be used for the policy of stimulating internal sources of economic growth, to improve sectoral recommendations of innovation policy.

A Socio-economic Analysis on Shrimp Culture (Litopenaeus vannamei) in Godavari Districts of Andhra Pradesh, India

Shrimp is a major exportable commodity, with high demand and prices on the international market. Andhra Pradesh is one of India's maritime states, with 974 kilometres of coastline. The state is the leading producer and exporter of farmed shrimp. Although shrimp farming has been practiced for many decades, a number of challenges that need to be addressed in order to improve the overall efficiency of the shrimp industry. In light of this, the present study was carried out to analyse the socio-economic status of shrimp farming in the East and West Godavari Districts of Andhra Pradesh. The data subjected to economic analysis revealed that the profitability of the venture in the study area. The estimates of Cobb-Douglas production function analysis showed that, stocking density, feed, probiotics and feed supplements, labour, and season dummy has significant influence on the shrimp yield. The estimates of resource use efficiency revealed the under-utilization of inputs, highlighting the need for optimising the use of resources to increase profitability. The returns to scale in shrimp culture of 1.04 indicates increasing returns to scale in production.

Modelling Sustainable Port Operations: Balancing Inputs and Outputs with the Cobb–Douglas Function

Modelling Sustainable Port Operations: Balancing Inputs and Outputs with the Cobb–Douglas Function

The Agricultural Labor Market: Farmer Perception and the Influence on The Efficiency of Rice Farming

Therefore, this research aims to analyze the factors that influence the farmer's perspective regarding the labor provider service and the effect of the service that is used by the farmers on the technical efficiency level. This research uses the methodology that involves the utilization of logit regression analysis to test the cross-sectional data that was obtained from 200 farmers in Ngawi, Lumajang, Pasuruan, Malang in Indonesia as a sample. The measurement of technical efficiency uses the Cobb-Douglas production function with the Stochastic Production Frontier approach and the Tobit Regression model to determine the effect of labor provider business on technical efficiency. This research found that factors that influence the farmer's perception of the labor provider are age, land area, the worker’s wage, and the use of agricultural tools. The technical efficiency level can certainly still be improved by addressing the influencing factors, namely the use of information technology, agricultural mechanization, and the positive response towards the organizations that help in the availability of input, such as the labor provider service. The findings in this research provide an overview of how a farmer should perceive the agricultural labor provider service, especially in agriculture in the industrial or high labor wages areas.

THE EFFECTS OF CLIMATE CHANGE ON VULNERABLE WORKERS’ PERFORMANCE AND INCOME

This study models and analyzes how climatic variability impacts the productivity of vulnerable and non-vulnerable workers, empha sizing disparities driven by climate sensitivity. Vulnerable workers, heavily reliant on stable environmental conditions, face amplified pro ductivity losses due to deviations from optimal temperature, while non-vulnerable workers, shielded by technology, maintain stable out puts. A Cobb-Douglas production function with a CES framework quantifies these effects, revealing significant declines in wages and pro ductivity for vulnerable groups as climate variability increases. The research integrates theories of heat stress, psychosocial work environ ments, and climate justice to explain these impacts. Results highlight how firms adapt by substituting vulnerable labor with non-vulnerable workers, exacerbating employment and income inequalities. This dy namic aligns with climate justice concerns, as low-income, outdoor intensive roles suffer the most, underscoring the need for equitable adaptation policies.

Bounded Rational Players in a Symmetric Random Exchange Market

A model of Edgeworthian economies is studied, in which participants are randomly chosen at each period to exchange two goods to increase their utilities, as described by the Cobb–Douglas utility function. Participants can trade deviating from their bilateral equilibrium, provided that the market and the trade follow appropriate symmetry conditions. The article aims to study the convergence to equilibrium in a situation where individuals or small groups of participants trade in a market, and prices are determined by interactions between the participants rather than by demand and supply alone. A dynamic matching and bargaining game is considered, with statistical duality imposed on the market game, ensuring that each participant has a counterpart with opposite preferences. This guaranties that there is sufficient incentive for trade. It is shown that, in each period, the expected logarithm of the trading price in the Edgeworthian economy equals the expected Walrasian price. This demonstrates that, under symmetry conditions, the trading price in the Edgeworthian economy is related to the Walrasian price, indicating convergence of the trading price in the Edgeworthian economy towards the Walrasian price. The study suggests that, under the right conditions, the decentralized trading model leads to price convergence similar to what would be expected in a more classical Walrasian economy, where prices balance demand and supply.

Strategies to scale up the Technical, Allocative and Economic Efficiency of Major Millet Growing Farmers in India – A Primal System Approach

Millet farming, a sustainable and economically viable option for farmers, providing resilience against climate variability and market fluctuations. Despite the increasing significance of millets in agriculture, there is a notable research gap concerning the efficiency of their cultivation and its impact on input demand and costs. This study leverages data from CCPC for the AY 2021-22, focusing on major millets—Bajra, Jowar, and Ragi cultivated across various Indian states. The research aims to understand the technical, allocative, and economic inefficiencies in millet farming to enhance productivity and resource utilization. It is hypothesized that inefficiencies in millet cultivation significantly impact input demand and cultivation costs, and addressing these inefficiencies can lead to improved agricultural practices and yields. Employing primal Cobb-Douglas production function showed that human labor, seed quantity, and fertilizers positively impact millet cultivation. Technical inefficiency is a major issue with Bajra farmers in Gujarat, Haryana, Maharashtra, Rajasthan and Uttar Pradesh. For Jowar, farmers in Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu are facing significant inefficiencies. In contrast, Karnataka and Odisha efficiently produce Ragi. Allocative inefficiency is noted in the over-utilization of animal and machine labor and fertilizers in Bajra cultivation, while these inputs are under-utilized in Jowar and Ragi cultivation. Both technical and allocative inefficiencies lead to increased input demand and higher cultivation costs across all three millets. The findings underscore the importance of state-specific strategies to address inefficiencies. These insights can guide policymakers in developing customized strategies to optimize millet cultivation, enhance yields and reduce costs.

A DRL-based RAQ-GERT dynamic resource allocation algorithm considering utility for multibeam satellite system

With the evolution and popularity of smart devices, the demand and requirement (e.g., communication, file transfer) of satellite users have increased rapidly. Moreover, users have different preferences for services and the quality of service (QoS), like delay and throughput, which leads to user heterogeneity. Facing numerous, time-varying, and heterogeneous users, how to dynamically allocate limited spectrum and on-board power while satisfying user requirements is the major challenge for the multibeam satellite system (MSS). Aiming to seek a solution, firstly, the resource allocation queue graphical evaluation and review technique (RAQ-GERT) network is constructed to describe the service process of the MSS, as well as to compute the channel condition parameters during the whole process. Next, appropriate QoS indicators are selected based on user requirements. Then, QoS indicators are calculated from the results of the RAQ-GERT network, which are combined to form the optimization objective of the MSS by drawing on the Cobb–Douglas utility function. After that, guided by the utility of the MSS, the proximal policy optimization (PPO) algorithm is applied to explore the optimal resource allocation scheme in this heterogeneous user scenario. Finally, the simulation comparisons show that the proposed scheme has enhancements in several performances, up to 42.19 % in service rate, 53.58 % in system capacity, and 3.42 % in throughput with minimal increase in latency.

Zero-inventory plans, constant workforce, or hybrid approach? Analysing pure production strategies for enhancing factory resilience with demand variability

Historically the notion of resilience capability has primarily been conceptualised as a holistic construct in the domain of supply chain networks – referred to as SCRES. The field of SCRES has since evolved gaining prominence among scholars and practitioners. However, the existing SCRES literature inadequately delves into the embedded resilience harboured by their constituent components, practices, or internal routines, including the aggregate production planning (APP) process. Therefore, the purpose of this article is to examine the interplay between medium-term pure strategies for APP and the resilience of manufacturing facilities, assuming demand to be the sole source of uncertainty. To accomplish this, a realistic Monte-Carlo simulation model integrated with a robust heuristic procedure for pure strategies is merged with a factory resilience index-based Cobb–Douglas function. The results of this research suggest that manufacturing facilities achieve a higher level of resilience when certain ‘zero-inventory plans’ are implemented. Based on this key finding, production/demand planners might incorporate the resilience dimension alongside the customary manufacturing success factors. Thus, to the best of the authors’ knowledge, this study represents the first attempt to establish a clear linkage between the implementation of pure APP strategies and a quantitative measure of factory resilience.

The Contribution of Total Factor Productivity on Economic Growth in Selected Southeastern European Countries

This paper delves into the impact of capital accumulation, effective employment, and total factor productivity (TFP) on the economic growth of five Southeastern European countries: Albania, Croatia, North Macedonia, Serbia, and Slovenia. The examination is based on the Solow-Swan neoclassical growth model and the Cobb-Douglas production function, which dissects economic growth into capital, labour, and productivity inputs. The analysis pays particular attention to the growth dynamics of North Macedonia over the entire period (1998-2019) and two sub-periods (1998-2008 and 2009-2019). The article seeks to provide a comprehensive evaluation of the primary drivers of economic growth in Southeastern European countries, emphasising the evolving roles of capital, labour, and productivity over time. Through a detailed analysis of these determinants, the study offers insights into the necessary policy actions to ensure sustainable long-term growth, especially in transition economies. The empirical analysis utilises the growth accounting framework and employs regression analysis to estimate the output elasticities of capital and labour inputs. The data analysis covers the period of 1998-2019, specifically focusing on two sub-periods to investigate shifts in growth drivers over time. Each factor's contributions are presented in absolute terms (percentage points) and relative terms (percentages) to provide a comprehensive understanding of their roles. The findings indicate that capital accumulation has been the predominant growth driver in most countries, especially Albania, Croatia, and North Macedonia. However, in Serbia and Slovenia, total factor productivity (TFP) played a more significant role, contributing substantially to growth. In North Macedonia, TFP showed strong contributions during 1998-2008 but declined sharply in 2009-2019, leading to increasing reliance on capital and labour inputs for growth. This study is valuable in emphasising the shift in growth drivers over time and highlighting the importance for Southeastern European countries to concentrate on productivity enhancements, innovation, and labour market reforms to sustain long-term growth. These findings provide significant insights for policymakers seeking to improve economic performance in transition economies.

Determinants of Technical Efficiency of Harumanis Mango Production in Perlis, Malaysia

The Harumanis mango (Mangifera indica L.) is renowned in Malaysia for its distinctive taste and strong market appeal. Despite the potential for exporting Harumanis mangoes to Japan, productivity in Perlis remains low. This study aims to analyse the determinants of technical efficiency in Harumanis production across two key regions in Perlis, Mata Ayer and Chuping, which are known for having the highest mango yields in Malaysia. Using Stochastic Frontier Analysis (SFA) and the Cobb-Douglas production function, a dataset of 150 observations was collected from 50 mango farms over three consecutive growing seasons. The analysis examined the impact of various production inputs—such as labour, agrichemicals, plot size—and environmental factors, including temperature and rainfal on mango yield. The findings revealed significant disparities in the efficiency and effectiveness of inputs between Mata Ayer and Chuping. Labour positively influenced mango yield in both regions, although the magnitude of its effect differed. Agrichemical use showed positive correlations in Mata Ayer but insignificant or negative associations in Chuping. Temperature emerged as a critical environmental factor, particularly in Chuping, where higher temperatures were linked to reduced output. The interaction between inputs underscores the importance of tailored management strategies that consider specific local conditions and input combinations. The technical efficiency analysis revealed greater inefficiencies in Mata Ayer compared to Chuping. This study enhances the understanding of mango production dynamics and provides insights for targeted interventions to improve yield and sustainability in Harumanis mango cultivation.

About the approach to measure company’s network capital

In modern scientific literature the category of «capital» is beginning to be applied to a wide range of company assets that can bring economic benefits over a long period of time. Various researchers distinguish human, intellectual, social, network and other types of capital. This makes it urgent to develop new approaches to assessing various types of capital, taking into account their complementary specificity. Within the framework of this article the task is to propose a new approach to measure company’s network capital. Existing methods for estimating company’s value are often based on summing up the costs of individual types of capital. However, such an additive approach does not consider the complementary nature of different types of capital. The work proposes to use a multiplicative approach based on the modified Cobb–Douglas function, which takes into account property and network capital as well as the economic efficiency of the company. This approach takes into account the complementarity of different types of capital and their combined impact on the value of а company. Seven leading global companies in the IT industry (Microsoft, Apple, Oracle Corp., Alphabet, Baidu, Meta, Twitter) were chosen as the empirical basis for the study. The proposed approach made possible to compare the network capital of different companies and identify the factors influencing its accumulation.

Biodiversity risk and firm performance: Evidence from US firms

AbstractBiodiversity loss is considered as a critical global challenge with significant implications for ecosystems, economies, and societies. While the importance of biodiversity conservation is widely acknowledged, the extent to which biodiversity risk impacts firm performance remains an under‐explored area of research. This paper examines how biodiversity risk affects firm performance using a new measure of firm‐level biodiversity risk generated from textual analysis of firms' 10‐K reports. Our multivariate analysis shows that biodiversity risk significantly hinders performance of firms in the United States during the 2001–2021 period. The finding holds well after controlling various confounding factors, using alternative variable measurements, model specifications, and correcting for endogeneity problems in the biodiversity risk‐firm performance nexus. Besides decreasing sales growth and profitability, biodiversity risk increases in the cost of goods sold, as explained by the Cobb–Douglas production function. Interestingly, we find that the effect is stronger for firms in biodiversity‐sensitive industries, weaker for firms with more product innovation, and remains insignificant for firms with top‐tier performance. Our study provides policy and practical implications for businesses to mitigate biodiversity risk in this contemporary era of ecological degradation.

Analysis of Resource Use and Production Efficiencies of Broiler Farming in Punjab

The study was conducted and examined using primary data collected from 100 broiler farms, which were applied through a probability proportion sampling method across all the regions of Punjab state. The Cobb-Douglas production function was used to determine the factors affecting broiler production and resource-use efficiency. The coefficient of day-old chicks and broiler feed were positive and significant at a 1 per cent level and affected the gross return of all three categories and overall units. The miscellaneous items were positively significant at a five per cent level only on overall broiler farms. If expenditure on items comprising miscellaneous costs increased by one per cent, it may increase the gross returns by an average of 0.074 per cent. The efficiency indicators of broiler feed showed that feed was overutilized in all categories. The overall ratio of meat-feed was 1.70, which clearly showed that for every rupee spent on feed, it could return to 1.70. The large broiler farms were more desirable value in both feed conversion ratio and meat-feed or output-input ratio. The study suggested that broiler feed was over-utilized, and there is a need to stop wastage of broiler feed.

A New Approach for Calculating Ship Emissions and Energy Efficiency of a Fleet Using the Cobb-Douglas Function

A New Approach for Calculating Ship Emissions and Energy Efficiency of a Fleet Using the Cobb-Douglas Function

Analysing forced migration’s impact on Ukraine’s economic sustainability

Purpose. To characterize consequences of forced migration from Ukraine to European countries, quantifying its impact on economic growth, the number, income of the economically active population, investment and industry of Ukraine, and to develop recommendations for overcoming the negative economic effect of migration. Methodology. The methods of analysis and synthesis, scientific abstraction, statistical analysis, economic and mathematical modeling, and graphical analysis were used. Findings. The article studies the factors that caused forced migration from Ukraine’s to European countries as well as the main differences in migration processes provoked by Russia’s war against Ukraine are substantiated. The economic effects and consequences of its impact on the Ukrainian economy are analyzed. The study is based on statistical data characterizing economic growth (GDP) and the factors that determine it (capital investment, economically active population). On the basis of the Cobb-Douglas production function with neutral scientific and technological progress or Hicks scientific and technological progress and the use of linear regression analysis methods, the relationship between changes in the number of economically active population and economic growth is established. Originality. A forecast of changes in GDP under the influence of forced migration of the economically active population of Ukraine in 2023 is calculated and three main scenarios of GDP dynamics are developed in accordance with these forecasts. Each of them envisages a significant drop in output under the influence of migration. Practical value. The article proposes ways to address the problem of forced migration in Ukraine’s economy and the consequences of its negative impact on sustainable development based on the experience of European countries. Ways to restore industry and attract investments to Ukraine are substantiated.