Journals Information
Universal Journal of Accounting and Finance Vol. 9(2), pp. 262 - 266
DOI: 10.13189/ujaf.2021.090216
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Assessment of CES Function Parameters in Oil-Rich CIS Countries
Yadulla Hasanli 1,2, Turac Musayev 3,*, Gunay Rahimli 4, Simrah Ismayilova 3,5
1 Director of the Scientific-Research Institute of Economic Studies, UNEC, Azerbaijan
2 Head of Laboratory of Modeling of Social and Economic Processes, Institute of Control Systems, ANAS, Azerbaijan
3 Department of Mathematical Software of Economical Researches, Institute of Economics, ANAS, Azerbaijan
4 PhD Student, UNEC, Azerbaijan
5 Laboratory of Modeling of Social and Economic Processes, Institute of Control Systems, ANAS, Azerbaijan
ABSTRACT
The article analyses balance between the capital and labor market in the CIS countries rich in hydrocarbon resources 鈥� Azerbaijan, Kazakhstan and Russia. For this purpose, the impact of capital (fixed assets) and labor (employed population) on the production volume (on GDP) was estimated based on the relevant statistical data from these countries using production function analysis. The parameters of CES production function were determined in the Mathcad system by the nonlinear least-squares method. The subject of the research has enhanced relevance due to the lack of extensive research of the problem posed in the oil and gas-rich countries of the CIS, and the research evaluates the balance between capital and labor markets for the first time in resource-abundant countries. From the results, it can be seen that for each of these three countries the distribution coefficient for capital is significantly higher than that for the labor factor. This means that there is an excess of capital that cannot be started. This is typical for the countries rich in natural resources. The main reason for this process is the complex structure of increasing capital with oil revenues and low level of specialization of the existing labor force to launch this capital. Moreover, according to the results obtained from the CES production function, the substitute elasticity coefficient in oil-rich countries of the CIS is less than one. The study summarizes the current problem as an imbalance between the capital (fixed assets created using modern technology) and the labor market (labor to leverage key assets using potential opportunities). Based on the analysis, the results obtained from modeling is formulated and scientifically grounded recommendations have been provided for the improvement of education and its quality in these three countries, especially in Russia and Azerbaijan.
KEYWORDS
Constant Elasticity of Substitution, Production Function, Capital, Specialized Labor Force
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Yadulla Hasanli , Turac Musayev , Gunay Rahimli , Simrah Ismayilova , "Assessment of CES Function Parameters in Oil-Rich CIS Countries," Universal Journal of Accounting and Finance, Vol. 9, No. 2, pp. 262 - 266, 2021. DOI: 10.13189/ujaf.2021.090216.
(b). APA Format:
Yadulla Hasanli , Turac Musayev , Gunay Rahimli , Simrah Ismayilova (2021). Assessment of CES Function Parameters in Oil-Rich CIS Countries. Universal Journal of Accounting and Finance, 9(2), 262 - 266. DOI: 10.13189/ujaf.2021.090216.