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National Interests: Priorities and Security
 

Labor efficiency as an imperative of the national economy development

Vol. 11, Iss. 7, FEBRUARY 2015

PDF  Article PDF Version

Available online: 9 February 2015

Subject Heading: STRATEGY OF ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 25-37

Grechko M.V. Southern Federal University, Rostov-on-Don, Russian Federation
Mishanya1981@mail.ru

Sakhno A.V. Southern Federal University, Rostov-on-Don, Russian Federation
andr011961@mail.ru

Importance Currently, the development of the Russian new economic doctrine, which is based on the non-resource (intellectual, innovative) factors of development, represents relevant and significant scientific and practical task.
     Objectives The article considers the problem of identification of the capacity and directions of the domestic economy development by means of increasing productivity, and provides performance level evaluation. Based on this goal, the research subject includes organizational and economic relations, which are organized in the process of productivity growth in the national economy, including the functional content of process, its diagnosis and evaluation instruments.
     Methods The research methodology is based on the cognitive capabilities of the results of political economy, evolutionary and institutional economics. It enabled us to propose and substantiate the provision that in the post-industrial transformation environment a new model of economic growth should be based on the human potential development, its creativity, ideas, and it also should contribute to labor productivity growth. The research enabled to identify the main obstacles to productivity growth of the domestic economy. These obstacles include a high degree of wear and tear of fixed assets; low level of social guarantees; current model of the national economy development; lack of competition and low specification of property rights; an outdated model of manufacturing process management (excessive vertical integration of companies). Comparison with the developed raw material producing countries shows that the majority of the Russian economy sectors are based on backward industry structure and they belong to the low labor efficiency group. While performing identification of factors and mechanisms of productivity growth in the domestic economy, we have used the cognitive potential of economic development theory and functional analysis, as well as the structural and institutional analysis methods, and instrumental design. We opine that equipment and technology, labor (intellectual capital of employees), science and education serve as the priority and systems-related factors of productivity growth in the domestic economy.
     Results The basic theoretical findings of the research can be used to develop the labor theory, the theory of socio-economic transformations, and the theory of intellectual capital.
     Conclusions and Relevance The practical results may be used by the State government bodies to work out strategies of the country's socio-economic development. In conclusion, we have integrated the key findings with respect to the conducted research.

Keywords: economic development, labor efficiency, intellectual capital, science, education, technologies

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