Економічні науки/16. Макроекономіка

 

Slobodyanyuk S.V, scientific adviser - Voinarovska N.V.

Vinnytsia Institute of Trade and Economics

Kyiv National University of Trade and Economics, Ukraine

THE WAYS OF INCREASE OF COMPETITIVENESS

OF UKRAINIAN ECONOMY

 

The most important task of the majority of countries is creation or increase of the level of competitiveness of the nation economy as the basic for acceleration of country’s development.

Competitiveness is an important factor for the development of our country too, while it characterizes the level of the society and increase of competition that improves the living standards for citizens.

Relevance of market competitiveness is predetermined by a lot of problems in Ukrainian economy, which amplified by the economic crisis. One of the most serious problems is the low competitiveness of national products.

The questions of market competitiveness have been analyzed in works by M.Porter, Dg.Sux, M.Fridmen, Dg.Kans, I.Marshal, O.Amosha, M.Butko and others.

The goal of this article is to research the level of competitiveness of Ukrainian economy and to define the main stages of its huge potential.

Competitiveness of the country is an ability of it to amount and support high temps of economic increase that expressed in steady GDP growth per capita [1]. Level of development of any country is competitiveness index in correlation with other countries because it means that they have more chances for economic development, so competitiveness and economic increase are interconnected concepts.

Basic core in definition of economics’ competitiveness in modern condition is direct connection with capacity of the national economy. That’s why for providing competitiveness any country needs to create conditions for fast and stable development of productivity of labour.

Competitiveness of national economic can be achieved by expense of country’s national resources and by development of new knowledge and technology. Nowadays, Ukraine uses the first way exporting Ukrainian products, where the biggest part of it belongs to metal, mineral resources and herbal products.

Modern economic situation of Ukraine is characterized by inefficient using of its economic potential.

The main index, which could characterize economic potential and level of competitiveness in quantitative expression, is the level of the GDP, which is lower then in other countries. It is in 12,2 times lower then in Luxemburg, 7 times the then in USA and 2,2 times the then in Russia. In general in facts of IMF in 2010 Ukraine was on the 102 place among 183 countries in the level in the real GDP [4].

The national economic of Ukraine has low technical and technological level, characterized by a significant deterioration of fixed assets, lack or low level of innovation.

For the development of Ukrainian production many energy and raw materials are used, and it has a huge coast, the economy has old fixed assets and technology, and the fact that all are done to reduce the market competitiveness.

The leading international organizations, which define the level of market competitiveness, are World Economic Forum and The International Institute for Management Development (IMD). This level could be determined by different methodises.

According to report of “Global inspection competitiveness 2011-2012”, Ukraine took place number 89 among 142 world countries in GIC and it is near African’s countries. Ukraine has the lowest place by “State and social organization” and “Effectiveness of commodity” and the highest place by the rate of it. The innovation processes haven’t acquired sufficient scale and doesn’t have influence on economic development [3].

The market competitiveness in Ukraine is law, but the country has a huge potential.

One of the most important parts of market competitiveness in Ukraine is the biggest human’s capital. It is characterized by the huge professional quality and high education which is the important factor of our country, because it can guarantee success in modern world economy.

To achieve the level of competitiveness of Ukrainian economy it is necessary to make changes to the legislation, to encourage technological modernization of production and innovation, including the Tax Code of Ukraine by introducing innovative benefits that in the future would allow the state to raise the economic level of our country.

In future it is needed to increase the budget financing of science at least twice more to achieve European Standards – 1% GDP at the expense of budget [5].

The main perspectives for future competitiveness of Ukraine in real sector is providing reforms of higher education, increasing financing of scientific inventions for energy and resource technology by budget of all levels, founding of techno parks and clusters, fastering developing the venture capital companies [2].

The results of the analysis show that Ukraine has a high potential, but the  competitiveness economy in Ukraine is low, the economy needs complex structure reconstruction, which includes innovation development of high technology branches of economy, to minimize part of raw material in all GDP. For increase of competitiveness of Ukrainian economy it is necessary to work out the strategy.

 

References:

 

1.                     Конкурентоспроможність економіки України в умовах глобалізації / За ред. Я.А. Жаліла. – К.: НІС, 2005., с. 13.

2.                     Пугачевська К.Й. Сучасні тенденції та стан конкурентного середовища в економіці України // Інноваційна економіка. – 2011. - № 22. - с.95-98.

3.                     http://www.me.gov.ua/control/uk/publish/article?art_id=173714&cat_id= 173713. - Аналіз рейтингу конкурентоспроможності України та ряду інших країн.

4.                     http://www.imf.org/external/pubs/ft/weo/data/changes.htm. - Data refer to the year 2010. World Economic Outlook Database-September 2011.

5.                     http://ena.lp.edu.ua:8080/bitstream/ntb/13075/1/53_Vaskovich_116-118_69.pdf. - Васькович М.І., Дорошкевич К.О. Проблеми фінансування інноваційного розвитку України та шляхи його покращення.