Labor productivity index decomposition analysis and the innovation-driven methods of its improvement \ on sugar plant

Abstract

In recent years, Ukraine has lost its leading position in the global sugar production and export- oriented industry has evolved into an import-dependent one, whose production is concentrated only to meet the needs of the domestic market. Today the Ukrainian sugar is uncompetitive due to the low efficiency of utilization of production capacity and outdated technology. One of the major drawbacks of sugar factories is the lack of incentives to innovate that inhibits productivity growth and development in general. The relevance of the study is the importance of identifying the labor productivity growth factors of sugar factories for catching sector and to improve its competitiveness. The purpose of the article is to conduct an index decomposition analysis of sugar plant’s labor productivity and provide practical recommendations to improve productivity through innovation in sugar industry. A structural logic model of the innovation-driven improvement of labor productivity is proposed.