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THEORETICAL AND METHODOLOGICAL FRAMEWORK OF THE INVESTIGATION OF PRODUCTIVITY AND EFFICIENCY IN THE REGIONAL ECONOMICS

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Jevgēnijs K., Sergejs I., Vasiliy D.
Sociālo Zinātņu Vēstnesis
|
2019
|
issue 2
24-64
EN
The aim of this article is working out of the theoretical and methodological framework of the investigation of productivity and efficiency in the regional economics, namely: 1) definition of terms and explanation of the essence of concepts “productivity” and “efficiency” in regional economic science; 2) empirical interpretation and search of the most corresponding to the terminological background method of measuring of the productivity and efficiency of regions; 3) identification of theories capable to explain the phenomena of the productivity and efficiency of regions. The results of the authors’ research showed that the productivity of region is defined as it’s ability to create as many as possible products in time unit, while the efficiency is the economical term that takes into account the amount of the factors of production utilizied in the productional process. Productivity / efficiency of a region is not only the sum of the productivity / efficiency of elements functioning in this region, as contains a certain “delta” - synergy effect (for the factors of production), agglomeration effect (for economical subjects) or concentration effect (for industries of economy). Always economically backward Latgale region is not with the lowest productivity calculated by the GDP per 1 km2 of a region’s territory ñ by this indicator less successful in Latvia is Vidzeme region. But by the earning index, calculated taking into account the industry structure of employment in a region, exactly the Latgale region as usually occupies the last place in Latvia, and the Riga region ñ the first one. By the efficiency in Latvia the Riga region leads expectantly, almost 2 times exceeding the efficiency of Pieriga region, and more than 3 times, ñ the efficiency of Latgale region. But lowest efficiency in Latvia is not in the Latgale region, but once more in Vidzeme region. Classic theory of production, and also neoclassical theory of growth, theory of endogenous growth, models of “new economic geography” and approach of resources-assets-capital can be applied for the theoretical basis of the investigation of the productivity and especially of the efficiency of regions. The novelty of this research is an attempt of the authors ñ firstly in Latvian economic science ñ to investigate systematically productivity and efficiency of regions with equivalent presentation of terms in Russian, Latvian and English.
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