Global Competitiveness Index Research Articles

Organizing international economic statistics in the context of globalization

The paper scrutinizes the peculiarities of organizing the international economic statistics in the context of globalization. It has been proven to be essential to rethink and reevaluate general problems of organizing the international economic statistics at the methodological level with the purpose of enhancing the reputation of Ukraine in the international arena. Ukraine’s choice of strategic direction towards the integration into the European Union actualizes the scientific discourse related to defining the conceptual foundations of state management of foreign economic activity, ensuring the implementation of customs policy of the state in accordance with the Association Agreement between the European Union and Ukraine. Notwithstanding certain achievements with regard to the implementation of provisions of the Association Agreement between the European Union and Ukraine in recent years, the country still requires a significant improvement of processes related to the activities of government authorities in the sphere of foreign economic activity, their interaction with stakeholders, improved governance over such processes. Indexes of leading ratings affirm the significance of intensifying such processes. The indicators of the «Global Competitiveness Index» and the «Index of Economic Freedom» in EU countries and Ukraine have been analyzed within the scope of the paper. It has been established that the impact of factors which serve to calculate these Indexes displays a considerable dependence on the efficient government regulation over its foreign trade and, correspondingly, state management of foreign economic activity of Ukraine in the context of European integration. The work comprises substantiation for the necessity to improve government regulation in the sphere of macroeconomic indicators which are included into international comparison ratings. According to other ratings such as the «Index of Economic Freedom», the «Corruption Perceptions Index», among all EU member states Ukraine maintains the lowest indexes, which testifies to its current condition as the one which requires the implementation into the activity of government institutions of the best practices and tools originating not only from EU countries but also from the countries with highest rating indexes and most advanced practices of reforming the system of public relations in the sphere of foreign economic activity.

International economic policy: a fuzzy set qualitative comparative analysis on think tanks in the press

This study examines the conditions that explain leading think tanks’ successful strategies for the growth of world media representation of the European Union’s (EU) international economic policy (N = 19). A fuzzy set qualitative comparative analysis (fsQCA) was developed throughout 2009–2018, which begins with the euro crisis. The causal conditions used are: the years of experience of each think tank; the attributes of its media representation (number of languages in which they spread their messages in the media, thematic concentration, and media concentration); and the macroeconomic characteristics of the countries from which they carry out their main activity (competitiveness and belonging to the euro). This data has been obtained through Factiva® (Dow Jones & Company©), the Global Competitiveness Index (World Economic Forum), and the European Central Bank. The core conditions analysis shows the importance of the think tank experience and the diversity of languages for their successful strategies. Likewise, the different pathways suggest that the thematic concentration and membership of the euro are sufficient conditions to explain the increased influence of the EU think tanks on the international public agenda.

Innovation activities and global competitiveness: evidence from southeast Asian countries

This article aims to understand the relationship between innovation and global competitiveness in several Southeast Asian countries, including: Vietnam, Singapore, Thailand, Indonesia, Malaysia, Bruney, and Philippines in the period 2005 - 2017. Only data on the global competitiveness index from 2013 to 2017 were collected in Laos, the same index was collected in Brunei but in a different period from 2008 to 2013 and the year 2016, 2017. In addition, data on innovation activities from 2007 to 2017 were collected in Cambodia. Data in the study were collected from the World Intellectual Property Organization (WIPO). ), World Economic Forum (WEF), World Bank (World Bank), and random-effects, fixed-effects methods were used. Research results show that innovation activities have a positive impact on global competitiveness and economic development is a factor promoting the global competitiveness of some Southeast Asian countries. Based on the research results, some Southeast Asian countries should have appropriate policies to develop global competitiveness, especially focusing on policies to encourage innovation for businesses, mechanisms, enabling businesses to innovate, which contributes to improving the global competitiveness of countries.

International Finance Trilemma as a Tool for Balanced Development of an Economy

International financial trilemma is a challenge of balancing the governmental policies ensuring healthy financial sector for facilitating economic development of a country. The scientific purpose of the paper is to develop a model of the international financial trilemma, defining the three key pillars of the international financial trilemma, the corresponding relevant metrics of economy, as well as describing expansion of financial technology as a disruptive element on a trilemma balance. Taking into account the experience of other researches of trilemma concept, analogically to the Energy Trilemma index, the authors developed the trilemma concept for the financial sector. The paper proposes determining the Financial trilemma index basing it on the following pillars: financial stability, financial inclusion and transparency. The authors analyse FinTech services as disruptive element affecting the International Financial trilemma index. As statistical basis of the financial trilemma and its building blocks the set of data from publicly available databases, such as the Global Competitiveness index, the Financial Development index, Global Findex and Doing Business is determined. The generally accepted quantitative and qualitative methods of economic science, inter alia comparative analysis, parameter estimation, grouping, economically mathematical modelling, synthesis, inductive, deductive and logically constructive methods have been used for the research. The financial trilemma index could be used as a tool for modelling an impact assessment of planned policy actions, as well as for developing determined steps for rising values of particular trilemma elements.

ГОСУДАРСТВЕННАЯ ПОДДЕРЖКА И ЭКОНОМИЧЕСКИЕ СТИМУЛЫ РАЗВИТИЯ НАУКОЕМКИХ ПРОИЗВОДСТВ В РЕСПУБЛИКЕ КАЗАХСТАН

This study examines the position of Kazakhstan among oil-producing countries within a single economic space, as well as leading countries in the global competitiveness index. One of the incentives of the development of knowledge-intensive productions was creating the national innovation system and tax preferences. According to the official data of initial R&D expenditures by branches of science and the results of survey about readiness for the transition to the knowledge-based economy it could be noticed an increased interest in the development of knowledge-intensive industries, however, there is a low involvement in innovative activities from domestic companies due to the lack of interaction between science and industry.

A Method of Financial Cost Assessment of Marine Transportation Based on Fuzzy Comprehensive Evaluation

Niu, X.F., 2020. A method of financial cost assessment of marine transportation based on fuzzy comprehensive evaluation. In: Guido Aldana, P.A. and Kantamaneni, K. (eds.), Advances in Water Resources, Coastal Management, and Marine Science Technology. Journal of Coastal Research, Special Issue No. 104, pp. 734–737. Coconut Creek (Florida), ISSN 0749-0208.In order to improve the accuracy of marine transportation cost assessment and reduce the investment in marine transportation, a method of financial cost assessment for marine transportation based on fuzzy comprehensive evaluation was put forward. Firstly, the structure of financial cost evaluation system of marine transportation was introduced, and the flow of information collection interface of cost information, evaluation management, information collection application and financial cost was designed respectively. Based on the availability of existing literatures and data, the packing throughput of port, infrastructure quality of port, liner trade index, export cost, space distance, global competitiveness index, logistics performance index and fuel price were selected as the main influencing factors of marine transportation financial cost evaluation after comprehensive consideration. All of them constituted a set of evaluation indexes. Moreover, marine transportation cost evaluation was completed by analytic hierarchy process and multi-level fuzzy comprehensive evaluation method. S company was taken as the experimental object. The result shows that the proposed method has accurate goodness of fit with the actual value and good practicality.

Logistic system of Kazakhstan in the world ranking

In the present article the author assessed the implementation the measuring indicators of the State programme and its priority objectives in development of the country transport infrastructure in accordance with global rankings. It sought to give explanation of the reasons of not fulfilling planned indicators. Kazakhstan’s position in World Bank reports (Logistics Performance Index) and the World Economic Forum (Transport infrastructure/The Global Competitiveness Index) have been analyzed, logistics market development in 50 countries with emerging economy (Emerging Market Logistics Index).The author gives an explanation of the assessment principles of the given rating, indicating the main criteria that is taken as a basis, the changes adopted in recent years in the assessment methods. The indicators of the leading countries in the world rankings are given, the main achievements and events that have contributed to high results and have interest for the development of the domestic logistics sector. The article assesses the leading position of Kazakhstan among the countries of the Eurasian Economic Union in the Logistics Performance Index for the period 2014-2018, highlights factors that contributed to the growth and development problems of logistics. The author revealed a correlation relationship between the main indicators of the country’s transport infrastructure (passenger and freight traffic, freight and passenger transport tariff indices, the operational length of public railways, the length of public paved roads, investments in fixed assets of transport and warehousing, goods turnover, the share of transport in the country’s GDP) and the logistics market development index (EMLI). The results of the analysis prove the validity of strategic planning for the development of the industry in accordance with the criteria of the world ranking.

THE IMPACT OF GLOBALIZATION ON THE SHAPING OF UKRAINE'S FOREIGN ECONOMIC POLICY

The article deals with the problems of realization and improvement of Ukraine's foreign economic policy in the conditions of globalization. The economic revival and self-determination of Ukraine, which are inextricably linked with its entry into the modern world economy, with the search for its place in the processes of globalization, are investigated. The global tendencies of formation of the modern market economy, which characterize a new type of economic systems of the XXI century, which develop on a market basis while regulating the economic life of society by the state and maintaining the social stability of society, are found out. The problems of Ukraine's integration into the world economy have been identified. It is determined that the modern national economy is not simply included in the system of world relations, but is its active equal subject. The country's global competitiveness index and its rating have been formed. The influence of globalization on the shaping of Ukraine's foreign economic policy is analyzed. It is proved that the choice of the model of development of the Ukrainian national-state economic system is caused not only by internal but also by external factors. Recommendations have been made to improve Ukraine's position on the world stage. The models of export-oriented or import-oriented production, which are determined by the goals of the foreign economic policy of the state, are considered. The examples of creation of production and investment model of economic relations at the enterprises of Ukraine are given. Proposals for improvement of Ukraine's foreign economic policy have been elaborated, aimed at creating favorable conditions for regulating economic relations, which provide competitive advantages and attracting foreign investments in the conditions of globalization. Approaches have been established that determine the priorities of the country's foreign economic policy making, the strategy and tactics of which are determined by the socio-economic features of a particular country's development.

VECTOR AND STRUCTURAL CHANGES IN THE MODERN WORLD

The article examines the vector and structural changes in the modern world, caused by exogenous and endogenous factors and identified on the basis of determining the countries status taking into account the processes of changing their positions according to the group affiliation (hegemonic countries, applicant countries, «third world» countries, as well as other countries which gravitate to the world vanguard or rearguard ones). The proposed methodology of research into the countries global status is based on a comprehensive approach to the analysis of socio-natural systems, presented as a combination of economic, political, innovative, social and spiritual spheres, as well as the sphere of functioning of institutions and the sphere of human interaction with nature. The k-means clustering and the fuzzy logic apparatus were used to find out the vector and structural changes taking place in a globalized society. The analysis is based on processing the country data by the following indicators: the KOF Globalization Index, the Legatum Prosperity Index, the Global Competitiveness Index, the Global Innovation Index, the Human Development Index, the Fragile States Index, and the Environmental Performance Index (2009—2018). They were selected as the attributes, the set of which allows to distinguish clusters. The countries were clustered according to the components of their socio-natural systems. According to the Index of Global Status of Countries, the place that belongs to the subjects of international relations was estimated and their status was identified. On this basis, the differences in the development of the countries were detected. Significant differences in the positioning of states in the globalized world were objectified. The conditions of the formation of countries global status and the causes of the status dynamics were revealed. The fact of asymmetry, polarization and inequality progression was proved. It was demonstrated that the study of vector and structural changes occurring in the world economic system and globalized society extends the scientific notion about the present day systemic contradiction of the post-industrial and post-capitalist eras of the globalized world being formed.

How Do Gender Inequalities in Health Relate to the Competitiveness of Developed Countries? An Empirical Study

Public health plays an important role in the spectrum of economic indicators. Simultaneously, the competitiveness of countries is a key economic indicator, and this interconnection requires special attention, especially in the decision-making process of public policies. The main objective of the presented study was to evaluate the effects of selected health indicators on the competitiveness of developed countries. The following health variables were collected for the analysed period from 2010 to 2018: four variables of Life Expectancy (LE) and three variables of Perceived Health Status (PHS). Each variable was observed from the perspective of gender differentiation and gender inequalities. The Global Competitiveness Index (GCI) was also used in the analyses as an economic variable. The research sample included all countries of the Organisation for Economic Co-operation and Development (OECD). The analytical data processing consisted of descriptive analysis, difference analysis (Wilcoxon Test), regression analysis (Panel regression model) and correlation analysis (Spearman's ρ). Regarding the results, all health variables showed differences between men and women. The results of the regression analysis revealed a very strong and significant effect of LE and PHS on the competitiveness of individual economies. The correlation analysis confirmed all relations. Improving the health of men and women is likely to increase the competitiveness of developed countries. As a result, it provides space for further research and policy-making in each country.

The Efficiency of Higher Education and Training Economics in the Arab Gulf Countries in the Light of the Global Competitiveness Index (GCI) Standards (2010- 2018) - Comparative analytical study: كفاءة اقتصاديات التعليم العالي والتدريب في دول الخليج العربي في ضوء معايير مؤشر التنافسية العالمية (GCI) (2010 – 2018) - دراسة تحليلية مقارنة –

The study aimed to discuss Arab Gulf states in the global competitiveness index issued annually by the World Economic Forum during the period (2010- 2018) in terms of the economic efficiency index, and the efficiency factor of higher education and training economics. That is for the hypothesis claimed that there is an effect of the efficiency of higher education and training economics in Arab Gulf states on the economic efficiency considering global competitiveness index standards. The study analyzed the situation of each of Arab Gulf states (Saudi Arabia- Kuwait- United Arab Emirates- Oman- Bahrain- Qatar) in terms of the overall rate and ranking, and used first- degree mathematical equations with one, two and three variable to reach the result of the situation of Arab Gulf states regards the top-ranking countries and the backward ranking countries, whether in the economic efficiency or in the efficiency factor of higher education and training economics. The study used a mathematical equation to analyze the effect of the efficiency factor of higher education and training economics in Arab Gulf states on the economic efficiency, and came out with several results based on mathematical equations and economic aspects with regard to the efficiency factor of higher education and training economics in Arab Gulf states. The study found that the degree of impact of the efficiency factor of higher education and training economics on the economic efficiency in Arab Gulf states in light of global competitiveness index standards are considered medium to tend to rise, reaching (11.20%) out of (17%).

Differentiation of regional attractiveness for gaining talents in the context of place branding theory

Strategies of place branding are an important tool for managing the flow of human capital. At the same time, the diversification of the labor force predetermines the specificity of a region and influences its brand. Keeping in mind that strong and effective place brands must be based on a clear vision, local governments become key players in the elaboration, implementation and maintenance of a brand. A regional brand is multidimensional and a region’s policy aimed at gaining talented people is one of its components. Considering the necessity for measuring the effectiveness of regional policies as well as comparing the attractiveness of regions with respect to a special group of human capital of talented individuals, it is possible to use indexes. The present study aims to answer the question: what is the difference in the attractiveness of Polish voivodships from the perspective of attracting talented people? The research design is based on the theory of place branding and is of exploratory nature. The aim of the study was achieved through a ranking of Polish voivodships based on the Global Talent Competitiveness Index. The ranking was completed applying the TOPSIS method. The index had been constructed using five dimensions of territorial attractiveness connected to gaining talent: enable, attract, grow, retain, be global. In general, the results show that all voivodships have good socio-economic and development conditions; however, opportunities for talented people and their global integration were less advanced. Conclusions reached through the study enable the identification of voivodships that are most and least attractive to talented people. The paper shows that the attractiveness of territories for talented people can be estimated at the meso-level providing researchers and practitioners with yet another perspective—in addition to the micro (corporate) and macro (national) levels that are better explored. The outcomes of such research facilitate the recognition of regions’ potential for attracting talent.

Foreign Direct Investments’ Impact on Economic Growth in Serbia

ABSTRACT As a main input for economic growth and competitiveness, foreign direct investments (FDI) remain one of the most important sources in both emerging and developing countries. This study emphasizes the importance of FDI into Serbia’s economy by analysing the forecasts between FDI, GDP, the unemployment rate and global competitive index (GCI). In this paper, authors focussed on a comparison of FDI inflows from China, Russia and the EU countries. According to the multiplicative and seasonal aspects of trend analysis considered, projections show a gradual increase in GDP, FDI, competitive ranks and a decrease in the unemployment rate for the following 5 years. These results shed light on the future potential directions under which investment and other public policies should be created. Theoretical and practical implications are also discussed.

Business dynamism in the world economy

The creation and growth of new enterprises and, on the other hand, their decline and market exit are crucial factors of business dynamism and economic growth. Thus, business dynamism is an important aspect in the market chain and productivity of an economy, as well as a trigger for market reforms. The aim is to analyze business dynamism using Global Competitiveness Index 4.0 and its variables worldwide and to verify the relationship between business dynamism in the EU states and economic characteristics such as Valued added at factor cost, Enterprise Birth Rate and Enterprise Death Rate. Data were collected from the 2019 Global Competitiveness Report and from the EUROSTAT database, using the most recently updated source for each indicator. The 11th pillar of the Global Competitiveness Index, focused on business dynamics, and a set of indicators were analyzed using PCA to verify if all the variables are effective representatives of the concept. It was found out that the pillar does not effectively represent the concept of business dynamism in case of the EU countries; therefore the new pillar was constructed. A strong and statistically significant correlation between business dynamism and Value Added was confirmed. A relationship between business dynamism and other economic indicators was not proven. From a territorial point of view, Oceania achieved the best overall result in the analyzed field. The process of starting a new business is the most challenging in terms of start-up costs in South America. By contrast, the EU has reached the best result in this process.

The Theory of Innovation and Innovative Development. AI Scenarios in Russia

This article explores different scenarios of implementing artificial intelligence (AI) in Russia. The relevance of the research and the range of problems addressed in it consist in the fact that Russia is not fully realizing the potential of innovative economic development. AI can accelerate the innovative development of Russia's Economy, but it entails the risks of its destabilization and therefore requires further research. This article contributes to the theory of innovation, thereby specifying the logic of the optimization of innovative development and the optimal scale in a strategy of risk management. The effectiveness of the digital modernization of Russia's Economy based on AI will be remarkably high. The index of global competitiveness achieves maximum value (7 points), increasing by 1.52 times. The innovation index of the economy grows 1.15 times. The unemployment level will rise 1.62 times, and the level of cybersecurity will decrease 6.52 times. Both advantages from the implementation of AI and risks of digital modernization of the Russian Economy are determined. The significance of the research consists in the application of the offered method for determining the optimal intervals of AI usage in Russia. The key conclusion that can be drawn from the research is the justification of the need to promote the modernization of the Russian Economy on the basis of AI with a view to accelerating its innovative development until 2024. The consequences of the research are involved with the improvement of practices of public regulation of the innovative development of the Russian Economy by promoting the dissemination of AI according to recommendations proposed by the authors.

An economic view of entrepreneurial intention

PurposeThe role of macrolevel factors in entrepreneurial intention remains as an underexplored issue in the literature. The purpose of this study is to reduce this gap by testing the effect of economic development on entrepreneurial intention.Design/methodology/approachThis study adopts a quantitative approach that formally tests for a quadratic relationship between economic development measured by the gross domestic product (GDP) and the Global Competitiveness Index (GCI)) and entrepreneurial intention based on longitudinal data covering 72 countries over the 2010–2016 period. Data are gathered from the Global Entrepreneurship Monitor (GEM), the International Monetary Fund (IMF) and the World Economic Forum (WEF).FindingsThe results reveal the existence of a U-shaped relationship between the country's GDP per capita and individuals' entrepreneurial intention. The results also support a similar relationship between GCI and entrepreneurial intention. These findings suggest that individuals' entrepreneurial intentions differ between countries depending on the level of economic development.Originality/valueTo the authors' knowledge, this article presents the first attempt to investigate the role of economic development on entrepreneurial intention based on longitudinal data covering a large sample of countries. Moreover, by providing evidence of a U-shaped relationship between economic progress and individuals' propensity to attempt an entrepreneurial career, this study enhances the understanding of the macrolevel determinants of entrepreneurial intention.

Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis

Abstract The main aim of the paper was to analyse the economic and social development of the European Union (EU) member states (28 countries) on the basis of selected five multicriteria indices (the Global Competitiveness Index, the Economic Freedom Index, the Global Innovation Index, the Corruption Perceptions Index, the Human Development Index). To perform settled aim, a multidimensional classification of EU countries for years 2011 and 2018 using cluster analysis was realized. The purpose of the analysis was to categorize the individual EU countries into clusters and to find out to what extent the position of EU member states has changed in terms of selected international indices over the analysed period. Based on the findings, it is arguable that a major part of the EU member states cluster into the same groups based on the selected indices assessment, regardless of the time period. However, six countries (Czech Republic, Estonia, Germany, Latvia, Lithuania, and United Kingdom) improved their position during the period under review and ranked into the cluster of more prosperous countries in 2018. The rate of change (improvement) was quantified at the level of 21.43%. Based on the results, Latvia and Lithuania were the most similar countries in terms of economic prosperity (Euclidean distance reached the level of 3.08), while the least similar countries were Greece and Sweden (Euclidean distance reached the level of 70.8). Declining Euclidean distances indicate that economic disparities of the individual EU countries have decreased in the period under review. This paper aims at developing the research to find out how, besides hierarchy, we can analyse the EU member states from the perspective of various multicriteria indices. The four proposed clusters could be used as a starting point for future policy reforms, pointing to the weaknesses of various countries.

Faktor Yang Berpengaruh Terhadap Kinerja Guru Pada Sekolah Menengah Di Kota Batam

ABSTRACTEducation in Indonesia is increasingly worrisome. The ranking is done in ASEAN through the Education Index by Human Development Reports, where Indonesia is on 7th position with a score of 0.62. In addition, data from the Global Talent Competitiveness Index (GTCI) in 2019 said that in the 67th order out of 125, HR in Indonesia did not have good competitiveness compared to other countries. The population of this research is secondary school teachers in Batam City. 375 questionnaires were distributed to secondary schools in Batam City. This research was tested using SPSS. The results of this study indicate that motivation, satisfaction, attitude and performance of knowledge management have a significant effect on performance, while social support has no influence on performance. This is because most teachers rarely meet other people outside the scope of the school so this situation is considered to be monotonous because they only teach and they become less in establishing relationships with people outside their scope.Keywords: Motivation, Social Support, Satisfaction,Attitude, Performance

Assessing Key Business-related Indicators for Smart Cities: Case of Tbilisi City

“Smart City” concept has become more popular in recent years. High interest is derived from the need to implement smart solutions and address the challenges associated with rapid population growth in urban areas. This paper focuses on assessing key business-related indicators that measure Tbilisi performance towards the achievement of smart city solutions. Since there are hundreds of smart city indicators in the world, this paper only focuses on researching business environment (i.e., Smart Economy out of the six (6) smart city characteristics 5 ). The methodology used in this study was based on both theoretical and practical approach. Detailed analysis of scientific papers, especially World Bank (Doing Business) and World Economic Forum (Global Competitiveness Index) reports, made it possible to identify key businessrelated indicators. In-depth analysis revealed five (5) indicators 6 . At the next stage, comparative analysis of Tbilisi and Stockholm was conducted to assess growth rates for each identified ones. Using statistical and historical data study, research results provided the opportunity to elaborate assessment framework that proposed the methodology for assessing the above mentioned indicators. After the analysis (according to the methodology of elaborated assessment framework), the research shows that Tbilisi only fulfills two (2) business-related indicators out of the five (5) identified.

Modelling EU agriculture’s regional disparities under the national accounting system’s approach. The impact of the new economic and environmental challenges

The performance farming is a new bet for the EU in the context of the present's major climate and economic challenges. This paper aims at defining a model of agricultural competitiveness for the EU and its application for the evaluation of regional agricultural performance, in relation to the global competitiveness index, using the theory of catastrophes. The objectives of the analysis are: to evaluate the current growth theories in agriculture, to conceptualize a new model of agricultural performance improvement (RAP), to test the model and to obtain the relevant working tools after its application. The used methods are: the study of the general models of growth in agriculture; the dynamic analysis of the Eurostat data on agricultural performance and Member States’ data published in the National Accounts System; the conceptualization of the RAP (Regional Agricultural Performance) growth model; the statistical testing of the model, its connectivity with global competitiveness indexes and climate change; the hypotheses’ building in order to eliminate the climate transformations influences according to the catastrophe theorem’s results; and providing a viable and sustainable tool for the national strategy for agriculture’s forecasting changes to the Member States. The novelty element brought by the present proposed model is that of quantification in a broader and special way of the impact of environmental changes on the performing agricultural output in terms of National Accounting System.