Labor productivity and capital to labor ratio in ensuring the economic growth of the Russian regions

Labor productivity is an important factor in economic growth. It is important to understand how employees’ provision of basic funds will improve the efficiency of their labor activity, to what extent it will affect the socio-economic indicators of the territory’s development, and whether the region’s specific features is of any significance. In this article, we want to demonstrate the opportunities of using production functions tools to distinguish territories whose contribution to improving productivity through provision of fixed assets will contribute to the economic growth, or regions where it is necessary to pay attention to other factors. The purpose for the article is to assess the impact of labor productivity on the economic growth in the region through construction of production functions. Production function tools are used to estimate the size of agglomeration economies and spatial effects, determine convergence/divergence rate of regional efficiency using the Solow growth model...