Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259291 
Year of Publication: 
2021
Citation: 
[Journal:] Comparative Economic Research. Central and Eastern Europe [ISSN:] 2082-6737 [Volume:] 24 [Issue:] 4 [Publisher:] Łódź University Press [Place:] Łódź [Year:] 2021 [Pages:] 137-152
Publisher: 
Łódź University Press, Łódź
Abstract: 
The production, or value added, approach to GDP involves calculating an industry or sector's output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term 'value added' be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.
Subjects: 
accounting
business
economic forces
economic value added
econophysics
JEL: 
D02
D21
D25
D46
F21
F37
M21
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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