Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic

Boranbayev, Askar; Obrosova, Nataliia; Shananin, Alexander

doi:10.3390/su151914057

Open AccessArticle

Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic

by

Askar Boranbayev

^1,*,†

,

Nataliia Obrosova

^2,3,*,†

and

Alexander Shananin

^2,3,4,†

¹

Department of Computer Science, Nazarbayev University, 53 Kabanbay Batyr Ave., Astana 010000, Kazakhstan

²

Moscow Center for Fundamental and Applied Mathematics, Lomonosov Moscow State University, GSP-1, Leninskie Gory, Moscow 119991, Russia

³

Federal Research Center “Computer Science and Control”, Russian Academy of Sciences, Vavilov Street 44/2, Moscow 119333, Russia

⁴

Department of System Analysis and Solutions, Faculty of Control and Applied Mathematics, Moscow Institute of Physics and Technology, Institutskiy Per. 9, Dolgoprudny 141701, Russia

^*

Authors to whom correspondence should be addressed.

^†

These authors contributed equally to this work.

Sustainability 2023, 15(19), 14057; https://doi.org/10.3390/su151914057

Submission received: 19 August 2023 / Revised: 8 September 2023 / Accepted: 13 September 2023 / Published: 22 September 2023

(This article belongs to the Special Issue The Effects of COVID-19 Shock on Sustainable Regional Development and Emerging Pathways toward Economic Recovery)

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Abstract

Input–output analysis finds widespread application in estimating the shock effects on production networks within both local and global economies. We are developing a new technology for intersectoral analysis that takes into account the substitution of production factors within a complex supply network triggered by external or internal shocks. This technology is based on the explicit solution of a pair of convex programming problems: the resource allocation problem under the assumption of Constant Elasticity of Substitution (CES) technologies and the special dual Young problem. Solving these problems, we can ascertain the equilibrium inputs and price indexes of goods within the production network. In this paper, we apply this technology to analyze the economy of Kazakhstan in the context of the COVID-19 pandemic. Our calculations provide us with the means to discuss the macroeconomic responses of the multi-sectoral production network in Kazakhstan to both external and internal shocks stemming from the pandemic.

Keywords: input–output analysis; CES production function; resource allocation problem; Young transform; competitive equilibrium; pandemic; economic shocks

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MDPI and ACS Style

Boranbayev, A.; Obrosova, N.; Shananin, A. Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic. Sustainability 2023, 15, 14057. https://doi.org/10.3390/su151914057

AMA Style

Boranbayev A, Obrosova N, Shananin A. Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic. Sustainability. 2023; 15(19):14057. https://doi.org/10.3390/su151914057

Chicago/Turabian Style

Boranbayev, Askar, Nataliia Obrosova, and Alexander Shananin. 2023. "Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic" Sustainability 15, no. 19: 14057. https://doi.org/10.3390/su151914057

APA Style

Boranbayev, A., Obrosova, N., & Shananin, A. (2023). Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic. Sustainability, 15(19), 14057. https://doi.org/10.3390/su151914057

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

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Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic

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