EVALUATION OF METALLURGICAL PRODUCTION IN AZERBAIJAN USING THE COBB-­DOUGLAS PRODUCTION FUNCTION

The production process in the metallurgical industry covers a complex process cycle. This includes such produc‑ tion processes as ore extraction, refining, smelting, and so on. From this point of view, the plants, which process the metallur‑ gical raw materials sequentially, have a close production relationship with each other. The use of scientific and technological progress in the metallurgical industry allows to increase labor productivity and reduce waste, and also makes it possible to obtain various types of products (rolling). The metallurgical industry typically uses a large number of raw materials and fuels. Since the raw materials used are extracted from the bowels of the earth and high temperatures are required for the smelting of metal, usually, metallurgical plants are built in close proximity to sources of raw materials and energy. Ferrous metallurgy in Azerbaijan was created, first of all, to meet the demand of the oil and gas sector for pipes, but later it was also used to ensure the further development of other sectors of the economy. In particular, the development of the metallur‑ gical industry is the key to the development of such areas as engineering, shipbuilding, metalworking. The availability of sufficient raw materials in Azerbaijan and the growing demand for the metal from year to year make the development of the metallurgical industry necessary. The article studies the period of technical development (cycle) of products manufactured in the metallurgical industry from the point of view of product competitiveness. The basis of the metallurgical industry is the extraction of ore from the bowels of the earth, which includes a complex process of cleaning the extracted raw materials. The second stage involves the production of iron, steelmaking and the production of rolled products. This stage is characterized by capital intensity. In the article, using the Eviews program, we calculated the gross output (RSMH) and fixed assets (RSEF) for each working metallurgical industry. In conclusion, it was found that an increase in fixed assets of the country's metallurgical industry by 1% increases the total output of the metallurgical industry by 0.80%, and an increase in the number of workers in the metallurgical industry by 1% increases the total production of the metallurgical industry by about 0.20%