Econometric modeling of the production function of industrial production in Russia
Industry occupies a significant place in the economic system of any country, providing products, goods and services, as well as jobs for a large proportion of the population. given the importance of this sector of the economy, it is of interest to assess the impact of key factors on the volume of industrial production. This implies the purpose of the study, which is to econometrically model the impact of key economic indicators on the volume of industrial output by constructing the classical Cobb-Douglas production function. To achieve this goal, statistical tools such as tables, graphs, coefficients and regression models were used in the work. As the main results, the following can be mentioned: the use of linear and non-linear production functions has both its advantages and disadvantages, which must be taken into account in the further use of the estimated models; the multiple linear model shows that the size of fixed assets has the greatest impact on the Russian regional industry; the non-linear model shows that there are “increasing returns to scale” in 2020, thus there is an increased effect from the use of labor and capital. The results obtained will be useful in further studies of cause-and-effect relationships in Russian industry.