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STATISTICAL INDICATORS OF ECONOMIC PRODUCTIVITY OF BUSINESS
ENTITIES IN FREE ECONOMIC ZONES
N.G. Nazarov
PhD., Institute of human resources
development and statistical research
https://doi.org/10.5281/zenodo.14415161
Abstract:
This thesis examines the statistical indicators of economic productivity of
business entities operating within the Free Economic Zones (FEZs) in Uzbekistan. FEZs play a
crucial role in fostering investment, innovation, and employment, contributing significantly to
the nation’s economic development. By analyzing various statistical indicators, including
production volume, investment levels, labor productivity, profitability, and export
performance, this study provides a comprehensive evaluation of the efficiency and growth of
businesses within these zones. Additionally, sectoral productivity is assessed to identify
which industries are driving economic growth.
Key words:
investment-innovation, economic growth, statistic indicators, economic
development.
The economic productivity of business entities operating in Free Economic Zones (FEZs)
can be effectively measured through various statistical indicators. These indicators help to
assess the performance, growth, and efficiency of business entities in these zones, providing
valuable insights into their contribution to the national economy. The following statistical
indicators are commonly used to evaluate the economic productivity of business entities in
FEZs:
1. Production Volume
Production volume is one of the most fundamental indicators of economic productivity
in any business entity. It refers to the total output produced by businesses in the FEZ over a
specific period, typically measured annually.
Total Production Volume: This indicator represents the overall production capacity of all
businesses in the FEZ. It includes all sectors (manufacturing, services, IT, etc.) and reflects the
contribution of FEZs to the overall industrial output of the country. A rise in total production
volume generally signifies an increase in economic activity within the FEZ
[1]
.
Production per Business Entity: This indicator calculates the average production volume
per business entity operating within the FEZ. It provides insights into the efficiency and scale
of individual businesses and allows for a comparison between different FEZs or sectors. A
higher production per entity typically indicates better resource utilization and productivity.
2. Investment Indicators
Investment plays a crucial role in enhancing the productivity of businesses in FEZs. Key
investment indicators include:
Foreign Direct Investment (FDI): The amount of FDI directed into the FEZs is a
significant indicator of economic productivity. FDI brings in capital, technology, and expertise,
which can enhance productivity in the FEZ by improving infrastructure, manufacturing
processes, and product quality.
Domestic Investment: In addition to FDI, domestic investment is equally important. This
indicator measures the amount of capital invested by local entities into the FEZ. It can reflect
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the growth of local entrepreneurship and the extent to which domestic firms are expanding
their operations
[2]
.
Capital Investment per Business Entity: This indicator tracks the capital invested by
each business entity in the FEZ. It includes investments in physical infrastructure, machinery,
technology, and research and development. Higher capital investment per business entity
often correlates with increased productivity.
3. Labor Productivity
Labor productivity measures the efficiency of labor in generating output. It is a key
indicator of economic productivity in any region, especially in industrial zones like FEZs.
Output per Employee: This is one of the most common ways to measure labor
productivity. It is calculated by dividing the total production volume by the number of
employees in the FEZ. A higher output per employee suggests that businesses in the FEZ are
more efficient in utilizing labor resources, which is a direct indicator of increased
productivity.
Employment Growth: The rate at which employment grows within FEZs can also
provide insights into productivity. If the number of employees increases while maintaining or
growing production levels, it may suggest that businesses are becoming more efficient or
expanding to meet higher demand
[3]
.
Labor Cost Efficiency: This indicator assesses how effectively businesses manage labor
costs relative to their output. A higher ratio of output to labor cost reflects better labor
productivity, showing that businesses are maximizing their labor force’s contribution to
economic output.
4. Profitability and Financial Performance
Profitability is an essential indicator of economic productivity, as it shows the financial
success of business entities operating in FEZs.
Net Profit Margin: This is calculated by dividing the net profit of a business by its total
revenue. A higher net profit margin indicates that a business is operating efficiently and
effectively converting its sales into actual profit. This reflects a high level of economic
productivity.
Return on Investment (ROI): This indicator measures the return generated from the
investments made in FEZs. A high ROI signifies that the capital invested in these zones is being
used effectively, which is a key indicator of productivity.
Revenue per Business Entity: This indicator provides insights into how much revenue
each business generates. It helps to compare the performance of businesses within the FEZ
and identify which sectors or industries are driving the highest revenue growth.
5. Export and Import Indicator
Since FEZs often have a strong focus on export-oriented production, export and import
indicators are crucial in assessing economic productivity.
Export Volume: This indicator measures the total value of goods and services produced
within the FEZ and exported to other countries. A higher export volume suggests that
businesses in the FEZ are producing competitive products that are in demand in international
markets, contributing significantly to the country's balance of trade.
Export per Business Entity: This indicator evaluates the average export volume per
business entity, which can be used to gauge the success of businesses in penetrating
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international markets. High export figures per business entity suggest that these businesses
are internationally competitive and efficient
[𝟒]
.
Trade Balance: The trade balance in the context of FEZs reflects the difference between
the value of exports and imports. A positive trade balance (more exports than imports)
indicates that the FEZ is successfully contributing to the national economy by generating
foreign currency.
6. Economic Efficiency Ratios
Economic efficiency ratios provide a comprehensive view of how well resources (labor,
capital, and materials) are being used in the production process.
Total Factor Productivity (TFP): TFP is a key indicator that measures the efficiency of all
inputs (labor, capital, etc.) in producing output. It reflects the overall efficiency of production
processes in the FEZ and is particularly useful in assessing long-term growth potential.
Productivity Growth Rate: This measures the rate at which productivity increases over
time. A higher productivity growth rate indicates that business entities in FEZs are continually
improving their efficiency, adopting new technologies, and increasing their contribution to
economic growth.
7. Sectoral Productivity Indicators
Different sectors within FEZs may have varying levels of productivity. Therefore,
analyzing productivity by sector is important for understanding which industries are driving
growth.
Sectoral Output per Employee: This indicator measures labor productivity within
specific sectors of the FEZ, such as manufacturing, IT, or services. It helps to identify which
sectors are performing better in terms of economic productivity
[5]
.
Sectoral Investment and Output: By comparing investment levels in different sectors
with their corresponding output, policymakers and business leaders can determine which
sectors offer the highest returns on investment and have the greatest potential for growth.
Conclusion.
The statistical indicators of economic productivity in Free Economic Zones
provide a comprehensive understanding of how well businesses within these zones
contribute to national economic growth. By analyzing production volume, investment flows,
labor productivity, profitability, export and import performance, and economic efficiency, we
can gauge the success of FEZs in driving industrial and economic development. These
indicators not only help assess the current state of FEZs but also provide a framework for
future policy-making aimed at enhancing productivity and fostering sustainable economic
growth in Uzbekistan's Free Economic Zones.
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