Specific Factors of Production: the Essence and Features of the Use in the Conditions of Economic Recovery

: pp. 232 - 243
Lviv Polytechnic National University, Ukraine

Modern international trade is becoming more and more complicated, competition on world markets is intensifying, increasing export volumes requires new approaches to managing production factors. The distribution of production factors among economic sectors and the level of their mobility within the country and abroad depend on the evaluation of the factors' characteristics. Factors of production are no longer homogeneous, even the same industry sometimes requires factors with different characteristics. The concept of specific factors of production is best suited for studying the international mobility of resources and explaining the structure of exports.

The purpose of the study is to study the possibility of applying the concept of specific factors of production to model the distribution of factors between branches of the national economy, based on the needs of developing their export potential. The main research methods were theoretical generalization, economic-statistical analysis, graphic-analytical method. The information base of the work was the theories of Heckscher-Ohlin, the theory of specific factors of production, Rybczynski theorem, Stolper-Samuelson theorem, Jones magnification effect. To achieve the set goal, the following tasks were completed: the theoretical basis of specific factors of production was formalized; well-known theories and theorems of specific factors of production were researched for their application in conditions of recovery of the domestic economy; tools for applying the concept of specific factors of production in the formation of the post-war recovery strategy of Ukraine's economy are described.

The work clearly demonstrates the advantages of dividing production factors into different cate- gories from the point of view of their characteristics. The intensity of the use of specific factors of production directly affects the volume of production of export products and the prices of factors. The described theoretical basis of specific factors of production can be used in the process of modeling the post-war recovery of the economy of Ukraine, provided that effective tools for evaluating and forecasting the structure and dynamics of factors of production and their parameters are formed.

The practical significance of the study is that, based on it, it is possible to form the elements of the strategy for managing factors of production in the post-war period: 1. Inventory and audit of existing factors of production with their classification into separate groups according to established criteria. 2. Determination of industries, their elements, individual goods or enterprises that have the greatest potential for increasing export potential. 3. State regulation of absolute and relative prices for factors of production should be aimed at maintaining potentially export-oriented institutional units. 4. The established criteria for assigning labor, capital and land resources to certain "specific" groups of production factors should become a motive for increasing their international and internal mobility, subject to compliance with national security conditions.

Forecasting the efficiency indicators of the use of specific factors of production and the consequences of their use for international trade will give a clear signal to business and international partners about the vector of development of the domestic economy. After the creation of a distribution system and technology for managing specific factors of production, it will be possible to concentrate efforts on the development of promising industries and reasonably abandon inefficient ones.

In the future, economic-mathematical models should be created and tested for the optimal distribution of factors within individual industries, inter-industry movement of factors, and maximization of export potential in terms of both individual products and vertically integrated combinations. The results of such modeling can become the basis for the formation of a national strategy for attracting, distributing and using factors of production with the participation of foreign partners.

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