Abstract
Analysis of a production network graph allows to determine the central industries of an economy. According to the well-known concept of economic development, these industries are the main drivers of economic growth. We discuss this concept in terms of a tractable model. Our approach is based on the nonlinear input-output balance model that is developed by authors. The classical method for determining of the drivers of economic growth is the Leontief’s input-output model that has been widely used since the middle of the XX century. This model assumes the fixed proportions of material costs for a unit of product output. The nonlinear model is based on the more relevant assumption about the stability of the structure of financial costs of a production. We use a Cobb-Douglas production function in order to develop a technology that allows to analyze the nonlinear input-output balance. The technology is based on the solution of Fenchel duality problem of resource allocation. On the base of the obtained results we analyze the concept of centrality and the stability of intersectoral linkages by the case of Kazakhstan statistics.
This research is funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (Grant No. AP09259435).
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Boranbayev, S., Obrosova, N., Shananin, A. (2021). Production Network Centrality in Connection to Economic Development by the Case of Kazakhstan Statistics. In: Olenev, N.N., Evtushenko, Y.G., Jaćimović, M., Khachay, M., Malkova, V. (eds) Optimization and Applications. OPTIMA 2021. Lecture Notes in Computer Science(), vol 13078. Springer, Cham. https://doi.org/10.1007/978-3-030-91059-4_23
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