Page 11 - Azerbaijan State University of Economics

N.Akimov., S.Baizakov., A. Oinarov., E.Utembayev: The analysis of the macroeconomic
dynamics and assessment of smart factors’ inputs to the balanced growth rates

Here, the three major production factors have included: labor, capital, land
plus the factors regulating the instruments of the development of the most market-
oriented economy.
The power of the regulatory impact of these factors is such that under their
influence the economic equilibrium of the base year largely undergoes disruptions.
Consequently, the macroeconomic dynamic system acquires a new equilibrium state.
This new market equilibrium is the power of the ‗social progress‘, which consists of
the combination of the ‗scientific and technical progress‘ and ‗technology-driven
improvements‘ of production, and also, of organizational skills of individual policy
makers.
In the end, under the influence of the above described factors, the set of
macroeconomic analyses of the social progress eventually benefits from adding a
new economic variable – and that is ─ an incremental profit (John B. Clark named it
as an (‗entrepreneurial profit‘).
The sources of generation of an incremental profit are the skills and ability of
decision makers, brain power of instruments and methodologies of economic
management. Such cumulative effect, which is associated with the social progress,
makes up the core input made by the science, technical and technological potential
within the structure of the generic contribution to the growth rates of production.
According to John B. Clark, the incremental profit is part of the
macroeconomic analysis and is the result of the implemented technical,
technological and organizational restructuring within the production process.
The macroeconomic analysis, in statics, lacks an incremental profit as a
measure of an income of individuals who adopt policy decisions, under various
scenarios. The latter is in fact is a salary of highly skilled labor.
However, the definition of static indicators of market equilibrium equation of
‗A‘ type rates second in John B. Clark‘s analysis (in statics.) Its analysis holds
second, as per its importance and assessment of its regulatory impact on the
development of market economy, upon concurrently establishing its major laws.
As regards the importance of the chapter of macroeconomic analysis dedicated
to dynamics, John B. Clark viewed that ―irrespective of origins of the mechanics that
has been revealed and explained by the dynamics section of the economic science,
the laws of statics will always be dominant. Any genuine knowledge of the laws on
mechanics depend on the knowledge of the laws on statics.‖ [Clark James.,2000] .
Following the laws on competitiveness, the society, according to John B.
Clark, ―is being governed by the laws on statics because labor is rewarded at any
given moment in time by the rate which is attributed to such state of an economy
when all dynamics changes are intact and the outcomes of earlier changes convert to

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