Gross Value Added: Influence of Extensive Factors by the Example of the Number of Employed in the Economy

Abstract

Object: To identify the impact of changes in the number of employed as an extensive factor on the formation of the state’s gross value added. Methods: Statistical methods of analysis, including a correlation and regression method. Results: As a result of investigating the features of the gross value added formation in the Republic of Kazakhstan, we have revealed the influence of an extensive labor factor, the number of employed in the country’s economy. The authors have hypothesized about the presence and direction of the relationship between the Gross Value Added and such factors as the Number of Employed, Number of Employees, and Number of Self-Employed. We have performed correlation and regression analyses to prove or refute these hypotheses. The analysis confirmed both hypotheses: the positive impact of the growth in the number of employees and the negative impact of the growth in the number of selfemployed in the formation of gross value added. These extensive factors have a correlation value close to modulus, however, the opposite effect on the productive factor is a gross value added. Conclusions: The reduction in the number of self-employed observed in the Republic of Kazakhstan, which has a positive effect on the growth of gross value added, can be regarded as their coming out of the shadows and indicates a positive process in the country’s economy.