Models of efficiency of functioning in trading enterprises under conditions of economic growth
The socio-economic situation in Ukraine suggests that there is insufficient research into the applicability of the model of economic development in forecasting the economic environment in which trade enterprises function. Researchers into issues relating to the efficiency of enterprises’ functioning...
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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2021-03-01
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| Series: | Bulletin of Geography. Socio-Economic Series |
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| Online Access: | https://doi.org/10.2478/bog-2021-0001 |
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| author | Ilyash Olha Vasyltsiv Taras Lupak Ruslan Get’manskiy Volodymyr |
| author_facet | Ilyash Olha Vasyltsiv Taras Lupak Ruslan Get’manskiy Volodymyr |
| author_sort | Ilyash Olha |
| collection | DOAJ |
| description | The socio-economic situation in Ukraine suggests that there is insufficient research into the applicability of the model of economic development in forecasting the economic environment in which trade enterprises function. Researchers into issues relating to the efficiency of enterprises’ functioning focus their interest on comprehensively describing efficiency indicators and determining the factors influencing it. There continues to be insufficient work on measuring efficiency and the extent to which it is limited by types of economic growth (development), based on the theory of marginal product of George Clark and the results of multiple models of production and trade functions (P. Douglas, R. Solow, E. Denison, Harrod, Samuelson-Hicks, Domar and others). Therefore, this study focuses on the process of assessing the effectiveness of trading enterprises in the trade sector in 2010–18 in conditions of economic growth and an economic downturn. This article aims to examine the models of efficient functioning of trading enterprises in conditions of economic growth. It is evidenced that the criterion for measuring efficiency is the evaluation of static and dynamic efficiency of trade activities, which allows changes in the used assets to be taken into account and testifies to the integration of diminishing returns and economic fluctuations in macro and microsystems. The article shows that in order to qualitatively and completely evaluate the efficiency of the functioning of trading enterprises, it is necessary to consider all possible factors. According to Clark's law, the authors substantiate an approach to evaluating performance based on simple one-factor models; the approach evidences that future studies seeking ways to improve efficiency, but that focus on changes in resources, will be erroneous, unjustified, and will most likely reduce the effectiveness of the resource under study. This model will help: determine and forecast the efficiency of enterprises at any point in the economic cycle; provide the necessary information on the required amount of investment, on depreciation rates, and on the optimal amount of labour potential of an enterprise; and define the volume of expected income during economic crisis or recovery. Some applied recommendations in terms of managing the efficiency of trading enterprises are aimed at solving the methodological problem of constructing isoquant maps for a particular product line group and at selecting the optimal predictor for forecasting trade processes. The practical value of the proposed model also lies in improving the parameters of positioning of the enterprise's goods in target market segments, reducing operating costs, accelerating the turnover of inventories and withdrawing illiquid current assets, and increasing the efficiency of retail areas. |
| format | Article |
| id | doaj-art-5616aded001844c8b4076de3b930e092 |
| institution | Kabale University |
| issn | 2083-8298 |
| language | English |
| publishDate | 2021-03-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| series | Bulletin of Geography. Socio-Economic Series |
| spelling | doaj-art-5616aded001844c8b4076de3b930e0922025-08-20T03:33:36ZengNicolaus Copernicus University in ToruńBulletin of Geography. Socio-Economic Series2083-82982021-03-01515172410.2478/bog-2021-0001Models of efficiency of functioning in trading enterprises under conditions of economic growthIlyash Olha0Vasyltsiv Taras1Lupak Ruslan2Get’manskiy Volodymyr3National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”, International University of FinanceState Enterprise “Dolishniy Institute of Regional Research of NAS of Ukraine”Lviv University of Trade and EconomicsLTD “SoftServe”The socio-economic situation in Ukraine suggests that there is insufficient research into the applicability of the model of economic development in forecasting the economic environment in which trade enterprises function. Researchers into issues relating to the efficiency of enterprises’ functioning focus their interest on comprehensively describing efficiency indicators and determining the factors influencing it. There continues to be insufficient work on measuring efficiency and the extent to which it is limited by types of economic growth (development), based on the theory of marginal product of George Clark and the results of multiple models of production and trade functions (P. Douglas, R. Solow, E. Denison, Harrod, Samuelson-Hicks, Domar and others). Therefore, this study focuses on the process of assessing the effectiveness of trading enterprises in the trade sector in 2010–18 in conditions of economic growth and an economic downturn. This article aims to examine the models of efficient functioning of trading enterprises in conditions of economic growth. It is evidenced that the criterion for measuring efficiency is the evaluation of static and dynamic efficiency of trade activities, which allows changes in the used assets to be taken into account and testifies to the integration of diminishing returns and economic fluctuations in macro and microsystems. The article shows that in order to qualitatively and completely evaluate the efficiency of the functioning of trading enterprises, it is necessary to consider all possible factors. According to Clark's law, the authors substantiate an approach to evaluating performance based on simple one-factor models; the approach evidences that future studies seeking ways to improve efficiency, but that focus on changes in resources, will be erroneous, unjustified, and will most likely reduce the effectiveness of the resource under study. This model will help: determine and forecast the efficiency of enterprises at any point in the economic cycle; provide the necessary information on the required amount of investment, on depreciation rates, and on the optimal amount of labour potential of an enterprise; and define the volume of expected income during economic crisis or recovery. Some applied recommendations in terms of managing the efficiency of trading enterprises are aimed at solving the methodological problem of constructing isoquant maps for a particular product line group and at selecting the optimal predictor for forecasting trade processes. The practical value of the proposed model also lies in improving the parameters of positioning of the enterprise's goods in target market segments, reducing operating costs, accelerating the turnover of inventories and withdrawing illiquid current assets, and increasing the efficiency of retail areas.https://doi.org/10.2478/bog-2021-0001efficiencytrading enterprisesinput / output resourcesspecificationparametrisationtrade activity functiondiminishing marginal product |
| spellingShingle | Ilyash Olha Vasyltsiv Taras Lupak Ruslan Get’manskiy Volodymyr Models of efficiency of functioning in trading enterprises under conditions of economic growth Bulletin of Geography. Socio-Economic Series efficiency trading enterprises input / output resources specification parametrisation trade activity function diminishing marginal product |
| title | Models of efficiency of functioning in trading enterprises under conditions of economic growth |
| title_full | Models of efficiency of functioning in trading enterprises under conditions of economic growth |
| title_fullStr | Models of efficiency of functioning in trading enterprises under conditions of economic growth |
| title_full_unstemmed | Models of efficiency of functioning in trading enterprises under conditions of economic growth |
| title_short | Models of efficiency of functioning in trading enterprises under conditions of economic growth |
| title_sort | models of efficiency of functioning in trading enterprises under conditions of economic growth |
| topic | efficiency trading enterprises input / output resources specification parametrisation trade activity function diminishing marginal product |
| url | https://doi.org/10.2478/bog-2021-0001 |
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