Analysis of Country's Competitiveness Factors Based on Inter-State Rating
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E3S Web of Conferences 153, 03001 (2020) https://doi.org/10.1051/e3sconf /2020153030 01 CORECT-IJJSS 2019 Analysis of country’s competitiveness factors based on inter-state rating comparisons Nadiia Shmygol 1, Olga Galtsova2, Oleksiy Solovyov3, Viktor Koval4 *, and I Wayan Edi Arsawan5 1Zaporizhzhia National University, Zaporizhzhia, Autozavodska str. 50 fl.13, 69118 Zaporizhzhia, Ukraine 2Classic Private University, Dryzba str. 220 fl. 62, 72311 Zaporizhzhia, Ukraine. 3Poltava State Agrarian Academy, Pivnichnakilceva Street 11 fl. 79, 69059Poltava Ukraine 4 Odessa Institute of Trade and Economics of Kyiv National University of Trade and Economics, Odessa, Ukraine 5Bali State Polytechnic, Jl. Raya Uluwatu No.45, Jimbaran, Kec. Kuta Sel., Kabupaten Badung, Bali 80361, Indonesia Abstract. Within the framework of the research was conducted an analysis of the modern level and problems of development of competitiveness, taking into account various aspects and system of advantages. In the article it was proved that despite the wide elucidation of the conceptual apparatus, methodological bases and ways of ensuring the competitive advantages of the respective objects of research, single, generalized point of view on this subject today doesn’t exist. It was done the analysis of the factors that ensure the country's competitiveness on the basis of interstate rating comparisons, which made it possible to organize the factors according to the degree of influence by the Pareto’s method and to determine priority directions of state development. 1 Introduction By definition, the competitiveness of an economic object is its ability to outperform its competitors through a long-term system of benefits under certain operating conditions [1- 4]. Based on this definition, competitiveness is not an absolute but a relative concept. The starting point of the benefits system is the purpose and aims of the research object. It means that one and the same economic object can have a competitive advantage in achieving the same goal and give in to its competitors within another direction of development. 2 Actual scientific researches and issues analysis and the research objective The problem of ensuring the competitiveness of enterprises, taking into account their branch affiliation, was studied in the research of such domestic scientists as: S. Scarlett V. * Corresponding author: [email protected] © The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/). E3S Web of Conferences 153, 03001 (2020) https://doi.org/10.1051/e3sconf /2020153030 01 CORECT-IJJSS 2019 Margasova O. Sakun etc. [1]. Sectoral aspect of this problem is reflected in the works: O.Yankovyi, Yu. Goncharov, V. Koval, T. Lositska [2]. At the state level, the competitiveness as a basis for sustainable development was studied by: T. Pulina, Ol. Zerniuk, Al. Glebova etc. [3]. Another direction of the national scientific thought was the problem of ensuring the competitiveness of individual regions. Worthy question in their work was given: Boiko, V., Kwilinski, A., Misiuk, M., Dalevska, N., Khobta, V., Kravchenko, S. [4, 5]. However, despite the broad elucidation of the conceptual apparatus, methodological foundations and ways of ensuring the competitive advantages of the relevant objects of research, there is no single, generalized point of view on this point to date. Not only domestic and foreign scientists, but also foreign research institutes, think-tanks, rating agencies and humanitarian organizations are engaged in study of competitiveness at the level of economic entities, industries and the state as a whole. According to the purpose of their research, Ukraine holds different competitive positions in the interstate rankings. This, in turn, emphasizes the relative nature of this economic category, and at the same time indicates that there is no definitive consensus among the scientists on the methodology for measuring the indicator and its components. 3 Assessment and analysis of the competitiveness by international indexes According to international rankings, Ukraine's competitiveness in 2018 was evaluated as follows: 1. Global Peace Index (GPI) [6] – according to the Institute for Economics and Peace (Institute for Economics and Peace, IER) in 2018, Ukraine ranked 152 place out of 163 countries in the world. This index has been calculated since 2007 and it is an integral indicator consisting of 15 indicators that characterize the current state and current trends of the peacefulness of countries: participation in the internal or external armed conflicts; the armed forces and international arms trade; crime rate; number of internally displaced persons, etc. On almost all indicators, Ukraine is now forced to give in to other peace- loving countries. 2. Bloomberg's Misery Index (BMI) [7] – according to the Bloomberg Financial News Agency, in 2018 Ukraine ranked 6th place out of 66 countries. The BMI calculation is based on the sum of the projected value level of inflation and unemployment. For Ukraine, this rate was 19.7% and give in only to Greece (20.1%), Turkey (26.8%), South Africa (31.8%), Argentina (42.7%) and Venezuela (929824.5 % with given hyperinflation was taken into account). At the same time, the most prosperous countries mattered at the level of: Thailand (2.1%), Singapore (2.5%), Japan (3.4%), Switzerland (3.6%) and Germany (4.0%). 3. World Happiness Report, (WHR) [8] – according to the UN data, in 2018 Ukraine ranked 138th out of 156 countries included in the report. This indicator is calculated on the basis of GDP per capita, the level of social support by the state, average life expectancy, freedom of life choices, generosity and perceptions of corruption. Competitive positions in this index are ensured by the social support of the population. On the other hand, freedom of choice has one of the worst values among all countries in the world. WHR of Ukraine made 4,103 points, Sudan (4,139) and Togo (3,999). Compared to other countries, WHR of Finland was 7,632 points, Norway - 7,594, Burundi - 2,905. 4. Prosperity Index (LPI) [9] - According to the data of British think tank The Legatum Institute, Ukraine ranked 111th out of 149 countries. This index has been calculated since 2008 and is an indicator of the well-being of the population of a country. It is based on a system of more than 100 indicators, grouped by areas: level of economic development, 2 E3S Web of Conferences 153, 03001 (2020) https://doi.org/10.1051/e3sconf /2020153030 01 CORECT-IJJSS 2019 business conditions, activities of government effectiveness, education, health care, life safety, level of personal liberties in society, social capital and ecology. The most troublesome, according to the results of 2018, were recognized government performance indicators (129th among other countries), life safety (128th place) and health care (137th place); the most competitive are education (43th place) and the level of personal freedom (90th place). 5. Human Development Index (HDI) [10] – According to the UN, today Ukraine ranks 88th among 189 countries. HDI includes such components as: average life expectancy; the level of education of the society determined by the length of study; the standard of living of the population equals to the gross national income per capita at the compound prices of the base year. Competitive positions of Ukraine, in comparison with other countries, are ensured due to the duration of study, which on the average 26.3 years. This indicator does not inferior to the level of highly developed countries in Western Europe. As for the last two indicators, we have a significant backlog: - The average life expectancy in Ukraine is 72.1 years, with a maximum life expectancy 83.6 years in Switzerland. However, in the vast majority of developed countries, this figure exceeds 80 years; - GNI per capita is $ 8130, in Liechtenstein is $ 97336 and $ 82,503 in Singapore. However, almost in all countries of Western Europe, this figure exceeds $ 30,000. 6. Social Development Index (SPI) [11] – According to the US data of think tank Social Progress Imperative, in 2018 Ukraine held 64th position among 146 countries, gaining 69.30 points out of 100. For comparison, among the leading countries, Norway scored 90.26 points, Denmark - 90.10 points. The lowest rated countries are Chad - 28.20 points and Central African Republic - 26.01 points. The Social Development Index consists of three areas of research containing 51 indicators: - basic human needs (81.48 points): food and basic medical care (93.74 points), water and sanitation (90.59 points), shelter (85.79 points), personal safety (55.80 points); - basics of well-being (69.38 points): access to basic knowledge (90.54 points), access to information and communications (73.46 points), health and well-being (56.12 points), environment (57, 41 points); - opportunities (57.04 points): personal rights (73.01 points), freedom of choice (66.01 points), inclusivity (35.61 points), access to higher education (53.52 points). - The results of this study show that in social development, Ukraine is far inferior to other countries in terms of personal safety, environmental pollution, access to a quality health care system and inclusiveness. The last refers to equality of political power in socio- economic status and discrimination to violence against minorities. 7. Index of Economic Freedom (IEF) [12] – calculated by The Heritage Foundation of American Research Center since 1995 for 180 countries in the following areas: rule of law; the number of authorities that govern the country and the effectiveness of its activities; open markets and more. In total this index includes 12 indicators, 3 in each group. As a result of their convolution, the IEF takes values from 0 to 100 points and can be interpreted as follows: - from 80 to 100 points – free countries. This group, based on 2018, includes Hong Kong (90.2 points), Singapore (89.4 points) and New Zealand (84.4 points) - from 70 to 79.9 points - almost free countries.