Identification of globalization threats to the economic sovereignty of countries with transition economies

Abstract

Purpose. To determine globalization threats to the economic sovereignty of transition economy countries based on the analysis and systematization of patterns in dynamics of subindices of the KOF Globalization Index. Methodology. The methods of analysis and synthesis are used to systematize data on the structure and dynamics of the KOF Globalization Index. The method of correlation-regression analysis is used to assess statistical significance of the relation between the KOF Globalization subindices and economic development indicators of the countries of the statistical sample. Findings. It is shown that wide rating opportunities to assess the level of the countrys involvement in the world economic processes are created by index rating systems, one of which is the KOF Globalization Index. The dynamics and structure of de jure and de facto KOF Globalization Index are analyzed. A statistical sampling of the countries has been formed according to the criterion of the level of economic development; the value of the subindices of political and economic globalization of the KOF within the period of 20032017 has been analyzed. It is shown that for all groups of countries in the statistical sampling, the hypothesis of no direct statistically significant relationship between the value of the sub-index of economic globalization KOF and indicators of their economic development can be accepted. At the same time, a direct, mostly strong and statistically significant correlation between the values of the KOF subindex of political globalization and economic development indicators has been confirmed, which proves the importance of choosing a rational vector of foreign policy integration to provide economic development. Originality. Confirmation of the hypothesis of no direct correlation between the level of state involvement in the world economy and the level of its economic development shows the transformation of the idea of openness of the national economy as a prerequisite for its successful development. On the contrary, it allows considering globalization as a source of additional globalization risks for the economic sovereignty of countries with weak economies. Practical value. The obtained results create a basis to develop approaches for assessing vulnerability of the economic sovereignty of countries, which will take into account the determinants of economic globalization and specify the ways to minimize their destructive impact on national economic systems in neo-protectionism.