Industry, which on average accounts for about 60% of commodity exports in the EU-28,
with over 58% resulting from the processing industry, plays a key role in ensuring the
competitiveness of EU countries. The article aims to simulate the influence of structural
processing industry parameters on the industry’s efficiency. Correlation methods and
the regression analysis were used to substantiate the hypotheses regarding the effect
that the share comprised of high-tech and medium-high-tech industries has on the
output structure, and the impact made by the share of imports in the intermediate
consumption of those industries on the efficiency (the share of gross value added
(GVA) in output) of the processing industry. Based on the criteria indicating the
increased technological level and reduced import dependence, economic and
mathematical models of optimisation were created for the output structure and
intermediate consumption of the processing industry, which were then solved using
the linear programming method. The authors present the mathematical proof of the
relationship between the change in structural parameters (shares of high-tech and
medium-tech industries and the share of imports in the structure of their intermediate
consumption) of the processing industry and the ratio of the gross value added/output.
The results of the simulation, which were based on data from the European Statistical
Office and the Organization for Economic Cooperation and Development, provide an
analytical basis for selecting industrial policy benchmarks.
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