Uticaj efikasnosti upotrebe proizvodnih faktora na razlike u nivou razvijenosti jugoslovenskih regiona

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Mlađan Dinkić

Abstract

This paper examines the link between economic efficiency and development level of the Yugoslav economy and its regions. The author presents the results of multicriteria ranking of economic regions according to the level of socio-economic development, obtained in the 1970s and 1980s by most Yugoslav economists. In continuation, he checks the quality of development indicators which were used in ranking. It is supposed that the efficiency of using factor inputs essentially determines the development level of each country.


Efficiency growth over the period 1966 to 1987 was measured through Total Factor Productivity (TFP) analysis. The methodology of TFP was used to provide an outline of structural change and dynamic efficiency of the Yugoslav economy. The results confirm that the pattern of growth in this period was very extensive. In other words, a majority of output growth (about 93%) has been derived from growth in factor inputs. The average rate of TFP growth of only 0.3 percent a year shows that the structural adjustment ability has been negligible.


For observing efficiency levels, a global index of efficiency (weight-ed and unweighted) was constructed. After that, the author compares the results derived from the multicriteria ranking with the corresponding efficiency analysis results. It turned out that the ranking of regions by economic efficiency (TFP growth, global efficiency level) is significantly different compared to the ranking of regions by level of overall development. That would mean that efficiency with which factor inputs are combined and allocated has no impact on the aggregate development leve. Such a paradox is a consequence of the "irregularity" of the Yugoslav economic system in the period considered.


Namely, the analysis of socio-economic development criteria shows that existing development indicators applied to the Yugoslav economy remarkably underestimate costs and exaggerate benefits. This creates an unreal picture of the development levels of various regions. On the other side, indicators which express development level are neither adapted to the actual historical moment, nor to the demand for joining the third technological revolution. That is why their adequate transformation is required.


 


 


 

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