Indicators of activity and efficiency of the industry of Lviv region and Podkarpackie voivodship

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 Lviv region and Podkarpackie Voivodship (Poland) as as regions, similar in many socio-economic characteristics. The goal of the article is to compare the competitive advantages of industry of Lviv region and Podkarpackie Voivodship 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, corresponding indices, which together determine the competitiveness of the industrial sector, were calculated. The analysis of the general integral index (average geometric value of the 7 indexes) revealed that the level of industry competitiveness in the Podkarpackie Voivodship was higher in all years of the analyzed period than in the Lviv region. This gap has become the biggest in 2015 (0.333 points), but in 2016 was reduced to a minimum (0.079 points). The latter indicates a tangible activation of industrial activity in the Lviv region. The largest growth in Lviv region was showed by indises of еconomic activity and investment activity. Instead completely unsatisfactory there is a profitability and innovation activity of industrial enterprises in Lviv region. 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 increase its supply, 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 investments and the level of implementation of the innovations into production.