METHODOLOGY FOR ASSESSING THE ECONOMIC EFFICIENCY OF AN INDUSTRIAL SECTOR

Abstract

This study evaluates the economic efficiency of the industrial sector using data spanning 2010–2024. While industrial volume has substantially grown, aggregate indicators often mask underlying resource misallocations. By constructing a geometric evaluation index (GEI) based on normalized subindices of investment efficiency, fixed asset turnover, and labor productivity, this paper uncovers structural imbalances. The empirical findings reveal that despite a surging volume in labor productivity driven by automation, investment efficiency remains critically low (IE = 0.17). The overall geometric index for 2024 stands at 0.438, indicating moderate efficiency that necessitates urgent structural reforms. A comprehensive policy matrix is proposed to transition the sector into a high-efficiency framework.