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ISSN 2227-6017 (ONLINE), ISSN 2303-9868 (PRINT), DOI: 10.18454/IRJ.2227-6017
ЭЛ № ФС 77 - 80772, 16+

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Келару И. О. РЕЗЕРВЫ ДЛЯ УЛУЧШЕНИЯ КОНКУРЕНТОСПОСОБНОСТИ НАЦИОНАЛЬНОЙ ЭКОНОМИКИ УКРАИНЫ / И. О. Келару // Международный научно-исследовательский журнал. — 2021. — № 9 (16) Часть 2. — С. 28—31. — URL: https://research-journal.org/economical/reserves-to-improve-competitiveness-of-the-national-economy-of-ukraine/ (дата обращения: 24.10.2021. ).
Келару И. О. РЕЗЕРВЫ ДЛЯ УЛУЧШЕНИЯ КОНКУРЕНТОСПОСОБНОСТИ НАЦИОНАЛЬНОЙ ЭКОНОМИКИ УКРАИНЫ / И. О. Келару // Международный научно-исследовательский журнал. — 2021. — № 9 (16) Часть 2. — С. 28—31.

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РЕЗЕРВЫ ДЛЯ УЛУЧШЕНИЯ КОНКУРЕНТОСПОСОБНОСТИ НАЦИОНАЛЬНОЙ ЭКОНОМИКИ УКРАИНЫ

Келару И.О.

Доцент, Кафедра Международных Отношений, Черноветский институт торговли и экономики

 РЕЗЕРВЫ ДЛЯ УЛУЧШЕНИЯ КОНКУРЕНТОСПОСОБНОСТИ НАЦИОНАЛЬНОЙ ЭКОНОМИКИ УКРАИНЫ

Аннотация

Автор анализирует позиции Украины в рейтинге индекса глобальной конкурентоспособности, определяет показатели, повышения ее конкурентоспособности, проводит анализ ключевых показателей конкурентоспособности Украины и других стран.

Ключевые слова: конкурентоспособность, глобальный индекс, макроэкономические факторы.

Kelaru I.O.

Teaching Assistant, Department of International Economics, Chernivtsi Trade and Economics Institute of KNTEU

RESERVES TO IMPROVE COMPETITIVENESS OF THE NATIONAL ECONOMY OF UKRAINE

Abstract

The author analyses the Ukraine’s position in the global competitiveness index, indicators defining the improvement of its competitive power, benchmarking of the key competitiveness indicators of Ukraine and other countries.

Keywords: competitiveness, global competitiveness index, macroeconomic factors.

Defining economy competitiveness factors has been a focal point of prominent economist scholars for centuries. Insufficiently studied remains the relationship between macroeconomic indicators of a country’s development and their impact on the competitiveness of the national economy. From this standpoint importance is given to the indicator describing the degree of country economic growth, the Global Competitiveness Index (GCI).

The GCI results of the recent year demonstrate that Switzerland has remained the leader based on ratings in the Global Competitiveness report for the fourth successive year. Singapore has been remaining in the second place followed by Finland, Sweden, the Netherlands, Germany and the United Kingdom, Hong Kong and Japan close the top 10. The authors of the report outline that lack of foresight and political hopelessness continue suppressing economic indicators of many countries and regions. The expected growth of productivity and private investments may become the key to improve the world economy in the era of highly uncertain global economic perspectives.

Based on assessments of experts of the World Economic Forum (WEF), in 2012 Ukraine corresponded the phase where the economic growth depends on the efficiency. At this phase more efficient production processes must be implemented and product quality must be increased leaving prices unchanged. The increase of the competitiveness level at this phase mainly depends on the quality of higher education and professional training, efficient goods and services market, properly operating labor market, development of the financial market, ability to use available technologies, volumes of the domestic and foreign markets.

In order to define the competitive position of the national economy of Ukraine in the world, let us refer to the comparison completed by analysts [1] who selected the following countries: Ukraine – 73rd, Poland – 41st, Argentina – 94th, Canada – 14th (pic. 1.-2.). The above selection of countries is stipulated by their similarity, they have similar levels of the population size but are at different development levels.

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Pic. 1 – Comparison of the key competitiveness indicators of Ukraine, Poland, Argentina and Canada in 2012 (distribution based on the index level (1 – best, 7 – worst)) [1]

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Pic. 2 – Comparison of the key competitiveness indicators of Ukraine, Poland, Argentina and Canada in 2012 (distribution based on the rating positions (1 – best developed, 144 – worst developed)) [1]

Poland is the nearest neighbor of Ukraine with a long-lasting relationship history, it left the socialist camp, since 2004 the country has been a member of the European Union fairly successful in overcoming the today’s crisis; Argentina, according to experts, is fairly similar to Ukraine based on its economy, resources, including croplands. Poland and Argentina are in the transition from an efficiency-based economy (type 2) to an innovation-oriented economy (type 3). It is worth to note that Argentina’s rating and indicators demonstrating fast-moving aggravation evidence of the country’s slow sliding into another serious domestic crisis.

Canada is a mighty constitutional monarchy with a parliamentary system, developed technology and industrial sectors, multi-sectoral economy and rich natural resources, efficient trade. Based on the WEF classification, Canada is at the innovation-oriented economy phase.

Although Ukraine is at the phase of an efficiency-based economy, the comparison of its indicators with relevant indicators of Canada as an innovation-oriented country designated in the study [1] as a ‘goal country’ or Poland transferring from phase 2 to phase 3 and designated as an ‘example country’ of the modern development or Argentina as an ‘anti-example country’ may be of some scientific interest [1].

The standard diagram analysis includes comparison with the mean for the group of countries at a certain development phase. For instance, for Ukraine it looks as follows (pic. 3. – 5.):

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Pic. 3 – Benchmarking of competitiveness of the national economy of Ukraine and countries of the first (factor-oriented) group of countries*

Source: based on the data from www.case-ukraine.kiev.ua

 

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Pic. 4 – Benchmarking of competitiveness of the national economy of Ukraine and countries of the second (efficiency-oriented) group of countries [1]

The diagram in pic. 4, same as in the previous, evidences of the need to solve considerable problems in the field of institutions, financial market development and the need to improve the commodity market efficiency. The same is in place in the diagram in pic. 3 compared to Poland’s data, also shown are the problems subject to solving after the main problems, namely the improvement of business processes and development of the technology level.

As an additional example, we have completed competitiveness benchmarking for once successful Spain, a third-group country with average figures for the group of innovation-oriented countries [1], which clearly demonstrates as unsolved problems from previous development phases subsequently affected Spain’s innovation-oriented economy (pic. 5). Serious deficiencies in the institutional development, financial market development, efficiency of the commodity market, labor market stipulated to a lag in the innovations development and, as a result, to an aggravation of macroeconomic indicators. The experience of this country can be important not for Ukraine only but for many countries as well.

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Pic. 5 – Benchmarking of competitiveness of Spain, a third-group country, with average figures of innovation-oriented countries [1]

Ukraine’s position in the global competitiveness rating evidences of aggravation of the socio-economic situation in the country as the index value is below the average world figure by 0.28 [2].

In the presence of the political crisis, competition for areas of economic influence, demographic crisis, lack of qualified professionals Ukraine is losing its national competitiveness in the global economic system. We share the opinion that politicians, representatives of businesses, community, science and education must take part in a national unity forum and sign a competitiveness treaty. For this purpose all nationals of Ukraine must consolidate around the competitiveness idea, building up competitive advantages to strengthen Ukraine in the world economy and secure sustainable development of the future generations.

Thus, the completed analysis allows to state that the reserves to improve the competitiveness of the national economy of Ukraine are mainly factors of macroeconomic nature and infrastructure, development of all types of commodity and financial markets, education, health and the business environment.

References

  1. Global Competitiveness Index 2012-2013 (electronic resource): http://ung.in.ua/ua/news/62/.  (reference date September 21, 2013)
  2. Ukraine and compared countries in the Global Competitiveness Index [electronic resource]: http://reports.weforum.org/global-competitiveness-report (reference date September 21, 2013)

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