Production functions in identifying the specifics of producing gross regional product of Russian Federation

Abstract

The paper presents the results of research about specifics of gross domestic product production in Russia using the tool of econometrics - production functions apparatus. Also, there are quantitatively found answers on questions, which have theoretical and methodological significance. First question - what has a decisive influencing on the production of gross domestic product in Russia, whether it is stocks or investments into the main fund? It was found that the decisive influence on the production of gross domestic product in Russia comes from investments into the main fund. Weak dependency of gross domestic product in Russia on capital stocks explains the inappropriateness of using capital stocks as a parameter of fund in production functions. Second question - what is the exact type of indicators that is preferred to use for characterizing the components of production function in conditions of the Russian economy - cost or natural? It is defined that is it possible to use both - cost terms indicators and indexes of physical volume. However, mining specifics of Russian economy defines the preference of using indexes of physical volume. Third question - what is the quality of economic growth of Russian economy during the period between 1996 and 2013? The intensive character of economic growth was found and the input of main factors of production into economic growth of Russian economy was measured.