Industry of Ukraine and Poland: comparative assessment of competitive advantages
Journal Title: Регіональна Економіка - Year 2017, Vol 83, Issue 1
Abstract
The implementation of a free trade area between Ukraine and the EU member states actualizes cross-border comparative assessments for identifying the competitive advantages of the industrial sector of national economy. Such assessment is correct for the industry of Ukraine and Poland as neighbors, similar in many socio-economic characteristics. The goal of the article is to compare the competitive advantages of industry of Ukraine and Poland at the national and regional levels according to the system of indicators characterizing the efficiency and activity of industrial enterprises. By integrating the set of primary indicators reflecting production, economic and resource efficiencies, as well as economic, industrial, technological, innovation, investment and export activity of industrial enterprises, the corresponding indices, which together determine the competitiveness of the industrial sector, were calculated. The analysis of general integral index revealed that the competitiveness of Polish industry in all the years of analyzed period (2011-2015) was higher than of that of Ukraine industry. This gap became the largest in 2014 (0.956 points), but in 2015 was reduced to a minimum (0.009 points). The latter reflects a significant intensification of industrial activity in Ukraine. This applies to border regions too. Thus, in 2015 (after a sharp drop in 2014) the gap between the levels of industrial competitiveness of Podkarpackie province and Lviv region increased significantly in favor of the latter and made up 0.092 points (in 2013 the gap was 0.048 points). The largest growth in Lviv region was showed by indices of resource efficiency – labor productivity (1.84 times), assets productivity (1.6 times) and manufacturing activity, i.e. the growth rate of industrial product sales (5.45 times) and the share of industrial products in the volume of sales (1.49 times). Instead, the profitability and innovation activity of industrial enterprises in Lviv region are completely unsatisfactory (and in Ukraine as a whole). As a result, many domestic producers are non-competitive on foreign markets today. To solve this problem, it is necessary on the one hand, to improve macroeconomic conditions for the operation of industrial enterprises in Ukraine towards promotion of domestic demand for domestic industrial products and of its supply increase, as well as towards improvement of quality management system for industrial production and acceleration of international certification of enterprises, and on the other – to increase the efficiency of investment and the level of implementation of the innovations into production.
Authors and Affiliations
Svitlana O. Ishchuk, Lyubomyr Y. Sozanskyy
Keywords
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