Economic Security of the Country: Marketing, Institutional and Political Determinants

Abstract

The aim of the paper was analysing of the main indicators which influence on the country’s economic security. The authors allocated the main approaches to define economic security. Traditionally the economic security was analysed as a range of economic parameters which are not considering the institutional and marketing parameters. The authors highlighted, the different types of combinations of marketing, political and institutional indicators could influence on the level of the country’s security level with different power. On this basis, the key factors which influenced on the level of the economic security were identified. All indicators were combined in three groups: marketing, political and institutional. To the political indicators, the parameters as follows were included: violence/terrorism; voice and accountability rating; rule of law; control of corruption. The marketing group of indicators contained the parameter – the country’s brand. The institutional group involved: adjusted net national income per capita; agricultural raw materials exports; agriculture, value-added; external balance on goods and services; food exports; food imports; foreign direct investment, net inflows; GDP growth; wage and salaried workers, total; GDP per capita growth; industry, value-added; total natural resources rents; trade. Thus, in the paper, the authors checked the hypothesis as follows: the existence of the statistically significant relationship between marketing, political and institutional parameters and level of economic security. The informational basis for analyses was dataset from the: World Government Indicators, Future Brand, World Data Bank. For checking hypothesis, the 2SLS method was chosen. The analysed period 2002-2018 years. The empirical findings proved that political stability had a negative statistically significant impact at level 1% on agriculture value-added, agricultural raw materials exports, food imports. Besides, the rule of law had a negative significant impact on the indicators: agricultural raw materials exports, value-added, and agriculture value-added. The finding proved that political and institutional imbalance restricts the recovering of the country’s economic security. In this case, the government should consider not only economic parameters but also marketing and institutional during developing the mechanism to increase the level of the country’s economic security. Keywords: economic security, corruption, stability, government, brand.