THE POSSIBILITIES OF THE LEONTIEF MODEL BASED ON MATRIX THEORY IN THE ANALYSIS OF MODERN ECONOMIC PROCESSES

Abstract

This article examines the analytical possibilities of the Leontief input–output model formulated within the framework of matrix theory for the analysis of modern economic processes. The study focuses on the mathematical representation of intersectoral economic relationships using systems of linear equations and matrix operations. Special attention is given to the role of the technical coefficient matrix and the Leontief inverse in determining equilibrium conditions and assessing the direct and indirect effects of changes in final demand. The paper highlights the importance of eigenvalue analysis and stability conditions in evaluating the feasibility and sustainability of economic systems. Furthermore, the applicability of matrix-based extensions of the Leontief model to contemporary economic challenges, including global value chains, regional development, and environmental–economic interactions, is discussed. The results demonstrate that matrix theory significantly enhances the explanatory and analytical power of the Leontief model, making it a valuable tool for modern economic analysis and policy evaluation.