Abstract
According to reports data of the International Institute of Management Development (IMD) and World Economic Forum (WEF), contries’ competitiveness tendencies were defined: rate of global competitiveness index remains lower than the rate, achieved before the global financial and economic crisis, non-linear distribution of benefits from economic growth between EU countries, Ukrainian rating falling by macroeconomic stability by 21 points in 2017 in comparison with 2018. It is not unexpected that realization of countries’ policy concerning their competitiveness growth requires some cost. Thus, author supposes that it is important to study key aspects of state finance, which can have great impact on the international competitiveness and solve the country’s macroeconomic stability problem. This paper shows results of author’s own research, carried out using methodic tools of scientists Ahvaz Shahid Chamran University, Ahvaz, Iran Abdolmajid Ahangari and Aziz Arman. It is based on evaluation of instability time rows of four economic variables of inflation (TINF), the ratio of budget deficit on growth domestic product (GDP) (TBD), foreign debt on GDP (TFD) and exchange rate deviation from the previous period (TRO) and calculation of macroeconomic instability index on their base MIItn. Research showed that all variables of macroeconomic instability index MIItn have a positive correlation; therefore, subindex of inflation rate instability and subindex of exchange rate to the previous period have the largest impact on the macroeconomic instability index MIItn .
Highlights
Annual reports of International Institute of Management Development (IMD) and World Economic Forum (WEF) (IMD, 2017, 2009, 2004; WEF, 2017‒2018, 2009‒2010, 2004‒2005) showed tendency of the economies gradual growth in various countries, on the view point of their competitiveness, after global financial and economic crisis (Table 1).In spite of some differences in methodology, implemented to evaluate competitiveness of these two institutions, place of leading countries in both ratings is practically the same
This paper shows results of author’s own research, carried out using methodic tools of scientists Ahvaz Shahid Chamran University, Ahvaz, Iran Abdolmajid Ahangari and Aziz Arman. It is based on evaluation of instability time rows of four economic variables of inflation (TINF), the ratio of budget deficit on growth domestic product (GDP) (TBD), foreign debt on GDP (TFD) and exchange rate deviation from the previous period (TRO) and calculation of macroeconomic instability index on their base MIItn
Research showed that all variables of macroeconomic instability index MIItn have a positive correlation; subindex of inflation rate instability and subindex of exchange rate to the previous period have the largest impact on the macroeconomic instability index MIItn
Summary
In spite of index falling, Latviа (49 place in the rating) remains more competitive country than Bulgaria (50 place), Croatia (74 place), Romania (62 place) In such situation of non-linear distribution of benefits from the economic growth, the ideology base of the country’s special policy is a problem to increase its competitiveness. Ukrainian scientists Vladimir Zakharchenko, Sergei Zakharchenko in their work (Zakharchenko & Zakharchenko, 2016) distinguish state finance as main factors to form total competitiveness in the country The authors focus their attention on the fact that the state finance evaluation, on the one hand, shows an impact on international competitiveness in the country, and, on the other hand, allows to define strategic direction to strengthen the competitive potential of state finance in the global financial and competitive space. Ukrainian rating fall by macroeconomic stability levelby 21 points in 2017 (121 place) in comparison with 2008 (100 place) shows the necessity to introduce an economic policy, oriented to reduction of development cyclicality and economic collapse consequences
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