Intermediate Consumption Research Articles

METHODOLOGICAL AND STATISTICAL ANALYSIS OF THE FORMATION OF GROSS VALUE ADDED AT THE REGIONAL LEVEL: OREL REGION

The article defines the relevance and significance of conducting a methodological and statistical analysis of the formation of gross value added at the regional level. The following are considered and analyzed: the relationship between indicators of gross value added, GRP and basic regional parameters of economic development, the dynamics of changes in indicators of gross value added and gross regional product of the Orel region in 2011-2020, the ratio of indicators of output (works, services), intermediate consumption and gross domestic product in the Orel region. A method for calculating the gross value added at the regional level is proposed, which meets the requirements of the Territorial statistics bodies of the Orel region.

CONSUMER EXPECTATIONS ON MAIZE FLOUR BRANDS FOODS IN CENTRE BENIN

The increasing of turnovers and earnings of maize flour brands food companies depends on how to suit offer on consumer’s expectation and location. This paper has assessed consumer expectations on attributes of maize flour food, and help to locate consumers on consumption chain. The study is based on data collected from 250 respondents in the city of Djidja, Benin. Descriptive statistics, vector error correction model (VECM), Likert scale (LS) and average propensity to consumption (APC) have been used in data analysis. Women were most (70%) involved in the flour consumption chain in the study area. The VECM revealed relevant attributes which were ranking with the LS from the most importance as availability, flour cleanness, price, storage time, and the dryness stage. The APC shows that wealthiest respondents were very exigents on attributes, refered to supermarkets as retail outlets and belonged to low consumption segment; while the low and intermediate income respondents were less exigents, purchased flour brands food in small retail shops, flour kiosks/vendors and road side outlets and were respectively identified on high and intermediate consumption segments. Findings contribute to improvement of marketing strategies including quality, supply level and appropriate policy of maize flour brands distribution for consumer expectation satisfaction.

Coastal Small Pelagic in Senegal: What Strategies to Sustainably Improve the Added Value Generated

This study assesses the share of the added value generated by coastal small pelagic fisheries in Senegal. The methodology is based on the reconstitution of the operating accounts of the different segments of artisanal fishing. The intermediate consumption of the value chain was the subject of field surveys. The results reveal that fuel is the most significant operating cost for small-scale maritime fishing units; on the other hand, for fish traders and processors, it is raw materials (fish). Overall, the average annual added value generated by sedentary senegalese coastal pelagic fisheries is estimated at $44.628 million US over the period 2014 - 2018. More than 44% of this added value ($20.661 million US) is generated by the production segment. The fishmonger and artisanal processing segment generated 10.744 and $11.570 million US, respectively. The added value of the freezing segment is the lowest, less than $1.653 million US per year. Improving this added value will not be possible through a continuous increase in landings due to the over-capacity of the means of production deployed in the fishery and the resulting state of overexploitation of resources. It is no longer a question of producing more but of making the best use of current levels of exploitation. That involves identifying bottlenecks in the value chain and finally proposing points for improvement likely to overcome them in the long term.

Acceleration of target production in co-culture by enhancing intermediate consumption through adaptive laboratory evolution.

Co-culture is a promising way to alleviate metabolic burden by dividing the metabolic pathways into several modules and sharing the conversion processes with multiple strains. Since an intermediate is passed from the donor to the recipient via the extracellular environment, it is inevitably diluted. Therefore, enhancing the intermediate consumption rate is important for increasing target productivity. In the present study, we demonstrated the enhancement of mevalonate consumption in Escherichia coli by adaptive laboratory evolution and applied the evolved strain to isoprenol production in an E. coli (upstream: glucose to mevalonate)-E. coli (downstream: mevalonate to isoprenol) co-culture. An engineered mevalonate auxotroph strain was repeatedly sub-cultured in a synthetic medium supplemented with mevalonate, where the mevalonate concentration was decreased stepwise from 100to 20 µM. In five parallel evolution experiments, all growth rates gradually increased, resulting in five evolved strains. Whole-genome re-sequencing and reverse engineering identified three mutations involved in enhancing mevalonate consumption. After introducing nudF gene for producing isoprenol, the isoprenol-producing parental and evolved strains were respectively co-cultured with a mevalonate-producing strain. At an inoculation ratio of 1:3 (upstream:downstream), isoprenol production using the evolved strain was 3.3 times higher than that using the parental strain.

Value Added from the Perspective of Econophysics

The production, or value added, approach to GDP involves calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term ‘value added’ be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.

Biosynthesis and metabolic engineering of 1-hydroxyphenazine in Pseudomonas chlororaphis H18

Background1-Hydroxyphenazine (1-OH-PHZ) is a phenazine microbial metabolite with broad-spectrum antibacterial activities against a lot of plant pathogens. However, its use is hampered by the low yield all along. Metabolic engineering of microorganisms is an increasingly powerful method for the production of valuable organisms at high levels. Pseudomonas chlororaphis is recognized as a safe and effective plant rhizosphere growth-promoting bacterium, and faster growth rate using glycerol or glucose as a renewable carbon source. Therefore, Pseudomonas chlororaphis is particularly suitable as the chassis cell for the modification and engineering of phenazines.ResultsIn this study, enzyme PhzS (monooxygenase) was heterologously expressed in a phenazine-1-carboxylic acid (PCA) generating strain Pseudomonas chlororaphis H18, and 1-hydroxyphenazine was isolated, characterized in the genetically modified strain. Next, the yield of 1-hydroxyphenazine was systematically engineered by the strategies including (1) semi-rational design remodeling of crucial protein PhzS, (2) blocking intermediate PCA consumption branch pathway, (3) enhancing the precursor pool, (4) engineering regulatory genes, etc. Finally, the titer of 1-hydroxyphenazine reached 3.6 g/L in 5 L fermenter in 54 h.ConclusionsThe 1-OH-PHZ production of Pseudomonas chlororaphis H18 was greatly improved through systematically engineering strategies, which is the highest, reported to date. This work provides a promising platform for 1-hydroxyphenazine engineering and production.Graphical

The interplay of labour, land, intermediate consumption and output: a decomposition of the agricultural labour productivity for the Baltic States

This article proposes a decomposition approach for the agricultural labour productivity change that takes into account the land-to-labour ratio, intermediate consumption intensity and intermediate consumption productivity. The case of the three Baltic States (Estonia, Latvia, Lithuania) is considered which is interesting in the light of the European Union (E.U.) expansion and the structural change taking place in those countries. In addition, Poland, Germany and Denmark are included in the analysis as benchmark countries. To quantify the drivers of the agricultural labour change in the countries considered, the Index Decomposition Analysis (I.D.A.) is applied. The analysis proceeds in two directions: first, the cumulative change in the agricultural labour productivity over 1998–2018 is decomposed for each country under analysis; second, differences in the agricultural labour productivity for each country vis-à-vis Denmark (the highest productivity country) are decomposed. The results offer important policy implications as the intermediate consumption intensity appears as the critical factor that needs to be addressed via the support payments.

Priority areas of state regulation of the industry in the context of sustainable development

In the article it is proved, that the economic development of any industry depends on the results of the economic activities of the enterprises that are part of it. Based on the available statistical data, we proposed a model for diagnosing the results of the mining industry and conducted a comparative analysis of the results of the study in the context of economic activities. Given the high integration of mining enterprises into the system of intersectoral relations, this problem cannot be solved within the framework of one industry. Therefore, it is proved that, taking into account the existing experience, it requires complex measures: accounts receivable are formed as a result of late payment for delivered products. The main consumers of the extractive industry are: the processing industry, the supply of electricity, gas, air conditioning and transport. They consume more than 87% of the products of this industry in the intermediate consumption market and are the most debtors; on the other hand, these regions are also the largest suppliers of raw materials, materials and semi-finished products for the extractive industry. Therefore, in the end, the accumulation of current accounts payable at the enterprises of the extractive industry for the delivered goods and services is the least desirable for them.

CONCEPTUAL FUNDAMENTALS OF INVESTMENT SUPPORT OF THE UKRAINIAN FOOD INDUSTRY

The purpose of the article is to develop the conceptual foundations of the investment support of the food industry of Ukraine on the basis of existing practice of statistical research. Methodology. The following analysis is carried out: evaluation of factors, overall assessment of the country's economic development prospects, absence of risks for investments due to military operations and other force majeure circumstances, stability of the legislative framework, etc. through interstate rating comparisons. Results. It is proved that the competitiveness of the country in the world market is not a sufficient condition for the development of investment support for the food industry. It is known that in the domestic market each industry competes with others for investment capital. Important factors, in this case, are: the capacity of the market, its growth prospects and the average level of profitability of economic activity. Thus, to attract both foreign and domestic investment, the food industry of Ukraine should correspond to a high level of these indicators, compared with other sectors of the economy. Within the framework of the developed concept this problem should be solved with the help of a multifactor model for assessing the competitiveness of the industry. Practical implications. According to calculations, the share of capital investments in the food industry in 2019 was 5.9% of their total volume in the economy. At the same time, food industry enterprises provided 8.2% of the country's gross domestic product and 11.6% of total production, including intermediate consumption. These comparisons show that today insufficient attention is paid to investment in this sector of the economy. Value/originality. The methods proposed in the article, unlike the existing ones, are based on the use of a set of economic and mathematical methods and models and allow for a quantitative assessment of the proposed solutions.

Assessment of the Development of Agriculture in Russia Based on the System of National Accounting

The growing interest both in our country and throughout the world in agriculture as an economic activity of strategic importance for ensuring food independence of the country determines the relevance of research on devising approaches to the analysis of its development using statistical methods. The authors’ approaches to assessing the development of agriculture in Russia based on data from the system of national accounts, including input-output tables, presented in this paper, make it possible to characterize the dynamics of the formation and use of output and gross value added (GVA) of the agricultural sector of the economy (including in the institutional context); assess the demand for each of the presented products within the industry and in the intermediate consumption of other industries; to identify structural changes in the composition of intermediate consumption in the production of goods; determine the trends and prospects for the development of agriculture on their basis.As part of the study, the authors disclosed additional analytical capabilities of statistical databases that include agricultural censuses and current accounting data in the system of macroeconomic indicators and allow for a more accurate assessment of the effectiveness of agricultural development. The calculated coefcients of direct costs ranged in the form of time series, analysis of the structure of intermediate consumption made it possible to identify the features of the development of the Russian agricultural sector and the directions for improving its economic and statistical analysis. The authors argue for the need to take into account the phenomenon of multistructure of agriculture in Russia to calculate the gross value added produced in the sector of peasant farms, subsidiary farms, separately small and large agricultural organizations, including holdings, with the obligatory comparison of the selling prices of their products used when calculating output and GVA. A proposal was made to include a table with additional information on labor costs and consumption of feed, fertilizers, electricity, and other basic resources in physical terms in the system of input-output tables by industry.

Design of the macroeconomic evolution of Romania's agriculture 2020–2040

The aim of the article is to design the macroeconomic evolution of Romania's agriculture through three indicators, considered by the authors the most important in rendering the level of sectoral development, namely: Output of the Agricultural Industry, Intermediate Consumption, and Gross Value Added. The selected indicators largely reflect the level and trends of efficiency of economic activity in agriculture. The study is based on the historical evolution, over the last 20 years, of the three indicators, respectively an estimated presentation of their evolution over the next 20 years. The analysis was performed at the level of three countries (Romania, France and Germany), respectively at the level of the average in the European Union. A main purpose of the research is to analyze the extent to which Romania can approach the agricultural performance of these countries by 2040. The working method is based on the exploitation of historical data, followed by the anticipation of their progress based on power regression functions. Key findings highlight that in view of macroeconomic indicators considered, maintaining the same historical rate of development for all countries, Romania cannot reach the average level of the EU or other countries with which we compare itself (France or Germany) until 2040. A hypotheses based on an annual increases of 3.5% for Romania, would allow the recovery of gaps, taking into account the new prospective of the evolution of production and future reform measures in agriculture under the umbrella of the Common Agricultural Policy. The authors' contribution to the realization of the theme is important in order to outline Romania's rural strategy at the horizon of 2040 and the possibilities of counteracting the differences of convergence between it and the countries studied.

DIGITAL TECHNOLOGIES IN INNOVATIVE AND STRUCTURAL TRANSFORMATION OF UKRAINE'S ECONOMY

The article substantiates the role of artificial intelligence in procuring the management of innovation and structural transformation of the economy. The analysis of structural shifts in gross value added in the economy of Ukraine during 2002–2019 is carried out. Solow’s residuals are calculated for the primary, secondary and tertiary sectors. The expediency of managing the innovative and structural transformation of Ukraine's economy on the basis of changes in the level of Solow's residual in that sector and in the period of time determined by big data analysis by artificial intelligence is proved. A VAR model was built in the EViews environment for Solow’s residuals in three sectors of the Ukrainian economy. Based on variance decomposition and IRF, it is established that increasing the share of intermediate consumption by the secondary sector of education, ICT, professional, scientific and technical services will increase Solow's residual in the secondary sector in two years, in the tertiary sector in three years and in the primary sector in four years, which will affect the increase in output in Ukraine during these three years.

Methodological aspects of the problem of measuring shadow activity in the economy

The relevance of the problem of measuring shadow activity and its significance for the purposes of macroeconomic analysis and forecasting is emphasized. The importance of forming an adequate methodological base for measuring shadow activity and developing an information support system for its research is substantiated. The existing approaches to the definition of shadow activity and methods of its measurement are analyzed. The possibility of building an information base and obtaining appropriate estimates of shadow activity on the basis of resource and use tables developed at the national level is evaluated. The possibility of using the resource approach as the most objective method of reflecting the volume and components of shadow activity at the sectoral and macro levels is studied. The conditions for the use of the resource approach are determined, taking into account the specifics of the industry features of the formation of output and intermediate consumption indicators. The possibility of constructing dynamic series of indicators constructed using the resource approach for analytical purposes is evaluated.

Optimal control of investment, premium and deductible for a non-life insurance company

A risk-averse insurance company controls its reserve, modeled as a perturbed Cramér-Lundberg process, by choice of both the premium p and the deductible K offered to potential customers. The surplus is allocated to financial investment in a riskless and a basket of risky assets potentially correlating with the insurance risks and thus serving as a partial hedge against these. Assuming customers differ in riskiness, increasing p or K reduces the number of customers n(p,K) and increases the arrival rate of claims per customer λ(p,K) through adverse selection, with a combined negative effect on the aggregate arrival rate n(p,K)λ(p,K). We derive the optimal premium rate, deductible, investment strategy, and dividend payout rate (consumption by the owner-manager) maximizing expected discounted lifetime utility of intermediate consumption under the assumption of constant absolute risk aversion. Closed-form solutions are provided under specific assumptions on the distributions of size and frequency of claims.

Technico-Economical Diagnosis of Traditional Goats Farms Based on Zootechnical Performances in the Locality of Wakwa (Adamawa Region-Cameroon)

A survey was carried out in the locality of Wakwa, region of Adamawa-Cameroon during the month of April 2021. The purpose of this study was to determine the elements of calculation of the gross product, intermediate consumption, and the method of calculation of the added value of traditional farms in the area with the zootechnical parameters of the goat as elements of economic production through the administration of a previously established questionnaire. The questions asked concerned: the socio-economic profile of the breeders, the farming or breeding system practiced the zootechnical parameters and the price and cost elements of inputs. It was noticed from this survey that the gender profile of the farmers is made up mostly of men (80%), most of who were above twenty years (92%), with agriculture (56%) as principal activity, trade (20%), handicrafts, pottery, sewing and other side activities (24%). They were mostly persons having received no formal education (68%). Regarding zootechnical parameters, the size of the herd did not exceed 10 animals for the majority of farms (76%). The selling price of the animals varied between 15,000 FCFA and 60,000 FCFA. The Litter of birth goat obeyed the principle of twinning with less than two litters per year or five cubs for a goat. The mortality of neonates and kids was less than 30%, which brings the number of adult goats to between 3 and 4 per year. Grosso modo , the goat breeding activity provides breeders with an estimated annual income of around 64,251.709 CFA, with a total cost of intermediate consumption over the mother's career of 7,904.9922 FCFA for a Gross Added Value of a mother over the duration of her career estimated at 143,300.698 FCFA.

The Government in SNA-Compliant DSGE Models

Abstract The government size in developed economies expanded remarkably after the Second World War. This growth shaped the role of the government as a key player in the economic activity and the aggregate dynamics of a country. However, the way in which the government is represented in DSGE models is often reductive, containing homogeneous public spending and a few distortionary taxes without clear counterparts in fiscal data. This paper shows how dynamic general equilibrium models can incorporate a detailed government sector as defined in the System of National Accounts (SNA). This government features six types of public expenditures (i.e. the government’s intermediate consumption, public wage bill, debt service, public investment, and transfers to households both in-kind and other-than-in-kind), and five distortionary taxes (i.e. consumption tax, capital and labor income taxes, corporate tax and social contributions).

The subnational supply chain and the COVID-19 pandemic: Short-term impacts on the Brazilian regional economy.

To control the transmission of coronavirus disease 2019 (COVID‐19), Brazilian local governments have adopted partial lockdown measures in economic sectors, thereby triggering transmission shocks along input–output supply chains. The national internal market and territorial disparities favor the formation of subnational production networks within borders, thus increasing the potential effects of lockdown measures on regional integration production networks. Therefore, this study makes hypothetical simulations of COVID‐19 mitigation policy decisions to understand the regional impacts on integration in supply chains, considering both domestic and global value chains. The generalized hypothetical extraction method is applied to a Brazilian interregional input–output model with 68 industries and 27 regions, imputing partial removals on intermediate consumption and final demand. The results suggest that richer subnational areas, mainly São Paulo and Rio de Janeiro, are proportionally more impacted by COVID‐19 trade shocks. However, the poorer peripheries are doubly affected, either by the foreign shock, which would damage their economic structure, or by the retraction of the subnational demand from core states. The findings highlight that economic shocks are spatially distributed through different industrial structures, thus stressing the need to avoid ‘one size fits all’ regional policies to mitigate the potential negative effects on exposed regions.

Analysis of trends in services sector development in the economy of Ukraine

The subject of research is the theoretical, methodological, and practical aspects of services sector development in the national economy. The purpose of the article is to identify the features and contradictions of services sector development in the economy of Ukraine. The methodological basis of the study is general scientific and special methods of scientific knowledge, conceptual terms of modern economics, and scientific works of domestic and foreign scientists on the functioning and development of the services sector. The methods of induction and deduction, unity of historical and logical, comparative analysis are used in the work - at revealing the basic tendencies and contradictions of services sector development, substantiation of the essence of service, its specific signs, and classification characteristics. Results of work. The tendencies of services sector development in the economy of Ukraine are determined. The intensive development of the Ukrainian services sector started only with the beginning of the market relations formation. In the economy of Ukraine, there is a strong tendency to exceed the total contribution of the services sector to national GDP against the contribution of industrial production and agriculture. Besides, the dynamics of the employment structure of Ukraine by economic activity types shows that the share of the economically active population working in the services sector is much higher than in primary and secondary sectors with a steady upward trend. The volume of capital investment in the services sector exceeds these indicators for both spheres of material production. There is a constant growth of intermediate consumption of services as necessary production resources. The main areas for attracting investment resources are capital-intensive industries, at the same time the level of investment activity in the areas of knowledge-intensive services is threateningly low. The expenditures on services consumption in the general structure of household expenditures are insignificant. The Ukrainian economic system is export-oriented in the sphere of services and has a positive foreign trade balance in services. Field of application of results. The conclusions and results obtained in the article should be used in the educational and scientific process of economic faculties of universities, in the activities of service enterprises as well. Conclusions. The industrial specialization of the national service sector, its focus on low- and medium-tech capital-intensive industries, low share of household expenditures in the service sector, the tendency to neglect the intellectual development of the individual, and insufficient attention to innovative economic development make it possible to determine the current state of and trends of services sector development as a quasi-post-industrial, where the absolute numerical indicators have already been achieved, and qualitative indicators of development are remaining at the industrial level.

Statistical analysis of trends in agriculture of Russia during the implementation of state programs

The purpose of implementation of State programs in the agricultural sector of Russia, starting with the Priority national project for the development of the agro-industrial complex in 2006, is to create conditions for the transition of the processes of production and distribution of agricultural products to a qualitatively new level. Modern agriculture should be high-tech in order to meet the needs of the population for high-quality products and increase export potential while maintaining and expanding the resource base of industries, reducing dependence on imports of its elements. Based on the methods of grouping and analytical alignment of time series, studying the structure of the use of gross output and intermediate consumption of agriculture, this study identifies trends in the growth of agricultural production in the period from 2005 to 2019, the features of the contribution of regions to their formation, an increase in the level of marketability of products in accordance with the requirements of the market economy, the growth of exports of milk, meat and grain. At the same time, the preservation of the dependence of production on the import of seed, planting material, pedigree livestock, poultry, elements of information production technologies was noted, and it violates the principles of food security of the country as the main task of agricultural development.

Simulation of the influence of structural parameters of the processing industry on its efficiency (on the example of the EU countries)

The industry – and primarily its processing sector – was and remains the leading economic activity, which can be evidenced by intensified reshoring processes in developed EU countries. However, the competitiveness or the enduring ability to withstand competition due to the availability of appropriate potential, can be realized only if a high level of efficiency is achieved. This largely depends on the existing structural parameters, by which authors of this study understand the relationship between the shares of different types of industry (based on the level of processability – high-tech, medium-high-tech, moderately-low-tech and low-tech) in output of the processing industry. The article aims to simulate the influence of the processing industry structure (in terms of the levels of its processability and import dependence of the productions) on the industry’s efficiency. Using the correlation and regression analysis on the example of individual EU countries (Germany, Poland, Czech Republic), the authors’ hypotheses about the impact of the share of high-tech and medium-high-tech industries, as well as the share of imports in the intermediate consumption of these industries, on the efficiency (the share of gross value added in output) of the processing industry were substantiated. Based on the criteria indicating the increased technological level and reduced import dependence, economic and mathematical models of optimization of the output structure and intermediate consumption of the processing industry have been created, which were then solved by applying the linear programming method. The authors present mathematical proofs of the relationship between the change in structural parameters (the share of high-tech and medium-tech industries and the share of imports in the structure of their intermediate consumption) of the processing industry and the ratio of gross value added/output. Proven scientific hypotheses, as well as the obtained results of simulation, create a theoretical and methodological basis for the selection of criteria for structural transformation of the industrial sector of the Ukrainian economy.