Internal Imbalances Research Articles

Analyzing the coupling coordination between aviation logistics and the regional economy: Identifying coupling mechanisms and critical influencing factors.

The relationship between aviation logistics and the regional economy (AL&RE) is mutually reinforcing. This study aims to develop a research framework for evaluating the coupling coordination level and identifying critical influencing factors in regional AL&RE by integrating the coupling coordination degree model with grey relational analysis. The framework is designed to guide regional policy formulation, fostering economic development through the coordinated advancement of AL&RE. To validate its effectiveness, an empirical analysis is conducted using data from Sichuan Province in China for the period 2013-2023. The key findings are as follows: (1) In Sichuan Province, local government expenditures on civil aviation development funds play a crucial role in supporting aviation logistics, while GDP and the proportion of investment in environmental pollution control relative to GDP significantly impact the regional economy. (2) The coupling degree between AL&RE remains high, with coordination generally improving, although occasional declines occur due to internal imbalances caused by external factors. (3) The influence of each indicator on coupling coordination varies, with civil aviation cargo turnover, throughput, and civil aviation take-off and landing sorties being the most significant. (4) Critical factors influencing AL&RE development differ from those affecting their coupling coordination, underscoring the nonlinear nature of this composite system. The study theoretically constructs a composite system for AL&RE and analyzes their coupling mechanism, addressing a significant research gap. It also integrates green indicators into the regional economic subsystem, offering a novel perspective for future research. Practically, the study provides recommendations for enhancing AL&RE coordination in Sichuan.

Temporal and Spatial Evolution Characteristics and Obstacle Factor Analysis of Rural Modernization Development Level in China

Rural modernization constitutes a crucial aspect in the modernization of socialism with Chinese characteristics. This paper assesses the level of rural modernization in China and investigates its spatiotemporal evolution characteristics and restrictive factors through a spatial autocorrelation analysis and the obstacle degree model. The research indicates that: (1) The overall rural modernization has escalated, with infrastructure and public services advancing at the fastest pace, while the modernization of the ecological environment and governance system lags relatively behind. The majority of provinces exhibit distinct internal imbalances and classified development traits, mainly categorized as the ecological priority type and economic priority type. (2) The eastern coastal areas and the southwest region have witnessed rapid development due to their well-established infrastructure and agglomeration of innovative elements; the northwest and northeast regions have developed slowly, influenced by geographical conditions and industrial structure. Regions exhibit the characteristics of both high and low agglomeration in multiple dimensions. (3) The modernization of governance systems and the ecological environment serve as the primary constraints, manifested as a low percentage of administrative villages, insufficient planning, excessive use of pesticides and fertilizers, and a low greening rate. Hence, it is necessary to address the shortcomings, optimize the spatial layout, and strengthen grassroots governance capacities to promote the coordinated advancement of rural modernization.

THERAPEUTIC POTENTIAL OF PIPPALI AS VAMANOPAGA AND RASAYANA IN THE MANAGEMENT OF TAMAKA SWASA: A CASE REPORT

Tamaka Swasa, commonly referred to as bronchial asthma, is a chronic respiratory condition characterized by recurrent episodes of breathlessness, wheezing, and chest tightness. In Ayurveda, it is classified as a Swasa Roga and primarily involves the vitiation of Vata and Kapha doshas. The condition is often triggered by internal imbalances of dosas and external stimuli such as allergens, seasonal changes, and stress. Ayurvedic management focuses on addressing the root cause through a holistic approach that include medicines, dietary modifications and lifestyle changes. Pippali (Piper longum) which is kapha vata samana and a rasayana has mucolytic and bronchodilator properties.It is also agni deepana and has anti-inflamatory property.Panchakarma procedures such as Vamana and Virechana help in eliminating the vitiated dosas and reduces the frequency of occurrence.Along with this Pranayama enhance respiratory function and mental well-being. This article is a case report on Tamaka swasa where the patient has frequent attack of swasa for the past 6 months post H1N1 infection.Patient tried conventional treatment methodologies which gave the patient temporary relief but the quality of life gradually got highly compromise.To reduce the frequency of exacerbating episodes and impart strength to the respitory organs patient opted Ayurvedic management.Here patient was advised with agnideepana,rukshana,snehapana,swedana,vamana,dhoomapana,virechana and rasayana modalities of treatment were adopted.The symptoms were assessed usingZeicester cough Questionare andSt.George Respiratory Questionare before and after the treatment.This would provide data regarding the changes in symptoms as well as quality of life.After the treatment patient showed significant improvement in the symptoms and quality of life.In addition a focal periosteal lesion which was noted in the previous HRCT was found reduced in the CT taken after the treatment. Removal of kapha from Vayumarga, by the application of Swasaroga chikitsa principle has been recognized in this case experience.

Spatiotemporal Evolution and Influencing Factors of New-Quality Productivity

New-quality productivity (NQP) serves as a critical indicator for measuring the level of high-quality economic development. Gaining insights into the spatial and temporal patterns along with the key drivers of NQP is essential for promoting the global industrial transformation and revitalizing old cities. This study utilized spatial analysis, Dagum Gini coefficient, Markov chains, and optimal parameter geographical detectors to analyze spatial patterns and influencing factors of NQP across 271 Chinese prefecture-level cities from 2011 to 2021. Findings reveal that the average index of NQP increased from 0.045 in 2011 to 0.072 in 2021, with spatial patterns showing higher levels in coastal regions compared to inland areas. The overall disparity of NQP has diminished, although significant internal imbalances persist, particularly in the eastern region, where the pronounced gap between eastern and central areas remains the primary source of variation. Local NQP development is strongly influenced by proximity to adjacent areas, characterized by path dependence and club convergence effects. Additionally, cultural foundation, urbanization, and economic development play pivotal roles in fostering NQP, with their interactions exhibiting notable nonlinear and dual-factor enhancement effects. These findings provide valuable theoretical and practical insights for advancing NQP levels in China and globally.

Analysis of disequilibrium and driving factors of carbon emission efficiency: Evidence from five major urban agglomerations in China

Analysis of disequilibrium and driving factors of carbon emission efficiency: Evidence from five major urban agglomerations in China

The ecor as global special purpose money: towards a green international monetary system to finance sustainable and just transformation

AbstractCountries from the Global South face significant challenges to finance sustainable and just transformation. These challenges primarily stem from the hierarchical character of the current international monetary system, which requires Global South countries to obtain US dollars to finance imports of green goods, services, and technologies that they cannot (yet) produce, but require for the sustainable transformation. To overcome this hurdle, we propose the foundation of a green international monetary system with a Green World Central Bank (GWCB) at its centre. The GWCB would be allowed to create its own unit of account, which in our model we refer to as the “ecor”. The ecor would be a global special purpose money similar to Keynes’ ‘bancor’. Ecors would be created by the GWCB in the act of lending, and credited to the GWCB accounts of countries to finance imports needed to combat the climate crisis and advance the process of sustainable and just transformation in their societies and economies. Ecors transferred by deficit countries to surplus countries would only be able to be used within the system, leading to an expansionary adjustment of international imbalances. In this way, the amount of ecors would adjust elastically to the real demands for sustainable change and would not be limited by reserves or by funding conditions from private finance. This would create an international monetary system capable of responding appropriately and flexibly to ease the financing needs of countries around the world, thus enabling them, to effectively address the climate crisis on a globally just basis.

The Mediterranean at the Dawn of the Third Millennium

The Mediterranean, after the end of the Cold War and the massacres of 11.9.2001 in New York and 7.10.2023 in Israel, is at the center of new conflicts and international imbalances. The crisis of Western hegemony is confirmed and intertwined with growing migratory flows, desertification and poverty produced by new financial selfishness and climate change, genocides and wars involving old and new forms of colonialism. Also, the Mediterranean is confronted with the new protagonism of the South of the world. “Our Sea” is a symbolic place for new conceptions of Identity, Race and God, and of the desire for freedom from old and new fears.

Ethnomedicinal Uses, Geographical Distribution, Botanical Description, Phytochemistry, Pharmacology, and Quality Control of Laportea bulbifera (Sieb. et Zucc.) Wedd.: A Review.

Laportea bulbifera (Sieb. et Zucc.) Wedd. (L. bulbifera) is a significant plant in the Laportea genus. Traditionally, it has been used in ethnomedicine for treating various conditions such as rheumatic arthralgia, fractures, falling injuries, nephritis dropsy, limb numbness, pruritus, fatigue-induced internal imbalances, and irregular menstruation. Modern pharmacological studies have confirmed its therapeutic potential, including anti-inflammatory, immunosuppressive, analgesic, and anti-rheumatoid arthritis properties. To gather comprehensive information on L. bulbifera, a thorough literature search was conducted using databases like Web of Science, PubMed, ProQuest, and CNKI. This review aims to provide a comprehensive understanding of L. bulbifera, covering various aspects such as ethnomedicinal uses, geographical distribution, botanical description, phytochemistry, pharmacology, and quality control. The goal is to establish a solid foundation and propose new research avenues for exploring and developing potential applications of L. bulbifera. So far, a total of one hundred and eighty-nine compounds have been isolated and identified from L. bulbifera, including flavonoids, phenolics, nitrogen compounds, steroids, terpenoids, coumarins, phenylpropanoids, fatty acids and their derivatives, and other compounds. Notably, flavonoids and fatty acids have demonstrated remarkable antioxidant and anti-inflammatory properties. Additionally, these compounds show promising potential in activities such as analgesia, hypoglycemia, and hypolipidemia, as well as toxicity. Despite extensive fundamental studies on L. bulbifera, further research is still needed to enhance our understanding of its mechanism of action and improve quality control. This requires more comprehensive investigations to explore the specific material basis, uncover new mechanisms of action, and refine quality control methods related to L. bulbifera. By doing so, we could contribute to the further development and utilization of this plant.

HAIR REJUVENATION THROUGH AYURVEDA: A REVIEW

Ayurveda is the science which places more emphasis on the prevention of disease and maintenance of health rather than simply treating it. This is achieved by following a strict pathya-apathya. Nowadays, the most common factors inducing hair fall include stress, major illnesses, medication use, depression, family history, autoimmune disease, hormonal imbalance, nutritional deficiencies, etc. Approximately 50% of Indians are losing hair faster than ever, and the current beauty industry has destroyed hair quality with poor-quality hair products. As hair fall is a complex problem, Ayurveda believes it’s the effect of internal imbalances. Ayurveda has shown promising results in preventing hair fall and regrowth through herbal products and lifestyle modification. It has been observed that many herbs and their extracts have proven good results in such cases. For this article, we have compiled and critically analyzed the ayurvedic concept of nidana and chikitsa mentioned in different classics for this alarming condition.

Oil Price Shocks and Current Account Imbalances within a Currency Union

For over two decades, current account imbalances have been an essential issue in the global policy debate as they threaten the world economy’s stability. More recently, the government debt crisis of the European Union shows that internal current account imbalances of a currency union may also add to these risks. Moreover, oil price fluctuations and a contracting monetary policy that reacts to oil prices, previously discussed to affect the current account, may threaten the currency union by increasing internal imbalances. Therefore, this paper analyzes the oil price shock’s impact on current account imbalances of a currency union with asymmetric labor market institutions. In this context, we show that oil price shocks can have a long-lasting effect on internal balances that the common monetary olicy authority can reduce by choosing a core inflation target. Targeting core inflation, however, comes at the cost of lower production and higher unemployment. We show that these costs can be significantly reduced by increasing labor market flexibility.

Exchange rate misalignment: A systematic literature review based on citation and content analysis

AbstractExchange rate policy is regarded as a critical macroeconomic policy. Especially the misalignment of exchange rates is significantly impact on imported goods, particularly oil imports, which ultimately effect external and internal imbalances. This study conducts a systematic literature review on exchange rate misalignment, as well as an intriguing content analysis of the top 100 most cited articles. Further it identifies the most influential authors, papers and the journals in the field using citation analysis. The relevant articles are identified using the Scopus database. Three hundred and seventy‐two scholarly papers have been found relevant. The results of the content analysis show that the purchasing power parity is the most frequently used theoretical foundation, followed by the Behavioural Equilibrium Exchange Rate. Additionally, the analysis reveals that the authors primarily utilised time series data. The identification of essential and core journals is made through Bradford's Law. Schuh (American Journal of Agricultural Economics, 56, 1974, 1) is a pioneering study that discussed the misalignment of exchange rates in the US agriculture sector. Valérie Mignon is the most prolific author in terms of both productivity and impact. The paper authored by O'Connell (Journal of International Economics, 44, 1998, 1) titled ‘overvaluation of purchasing power parity’, is recognised as the most influential paper in terms of average citations per year.

ИННОВАЦИИ И ПЕРСПЕКТИВЫ РАЗВИТИЯ ЛОГИСТИЧЕСКИХ СИСТЕМ И ЦЕПЕЙ ПОСТАВОК НА МЕЗО-УРОВНЕ В СОВРЕМЕННЫХ ЭКОНОМИЧЕСКИХ УСЛОВИЯХ

The article analyzes innovations and prospects for the development of logistics systems and supply chains at the meso-level in modern economic conditions. The article proposes a new approach to the analysis of systemic problems of the economy, considering them in the context of the systemic paradigm as a consequence of economic dysfunctions and imbalances. Promising directions for the development of meso-level studies of innovative development of logistics systems and supply chains are described, it is noted that each of the briefly outlined problem areas should be accompanied by a study of the effectiveness of the functioning of meso-systems, the results of which, of course, require consideration when implementing their economic development programs. The author proposes and analyzes innovations and prospects for the development of logistics systems and supply chains at the meso-level in modern economic conditions. The article characterizes the research of the innovative component of the socio-economic development of the economy of the region and its individual subsystems, the need for an optimal combination of theories and methods of managing the parameters of reproduction of economic systems. To study the internal imbalances of the economy, three types of structuring of the economic sphere are considered: interdisciplinary, intersectoral and inter-level. Interdisciplinary structuring allows us to focus on the interrelationships between economic theory and economic practice, the violation of which is especially noticeable in the Russian economy in recent decades. Intersectoral structuring is key from the point of view of the system paradigm.The possibility of using a system notebook model to analyze the proportions between these spheres, in which macroeconomics plays the role of a subsystem of the environment, mesoeconomics – object, microeconomics – process and corporate economics of the project subsystem, is substantiated. This allows us to take a fresh look at the interaction of hierarchical layers of the economy, to reveal the hidden possibilities of influencing the micro-level of the economy with the macro- and meso-level.

Varieties and interdependencies of demand and growth regimes in finance-dominated capitalism: a Post-Keynesian two-country stock–flow consistent simulation approach

The authors outline and simulate a stylized Post-Keynesian two-country stock–flow consistent model to demonstrate the interconnection of three of the main features/outcomes of finance-dominated capitalism, namely worsening income distribution for the bottom 90 per cent of households, the rise of international imbalances, and the build-up of financial fragility. In the model, two basic regimes emerge, depending on the institutional setting of the respective model economy: the debt-led private demand boom regime and the export-led mercantilist regime. The authors demonstrate the complementarity and interdependence of these two regimes and show how this constellation transformed after a crisis into the domestic demand-led regime stabilized by government deficits, on the one hand, and export-led mercantilist regimes, on the other, depending on the required deleveraging of private household debt, distributional developments and fiscal policy.

INTERNAL IMBALANCES AND GROWTH IN UKRAINE IN THE VIEW OF FISCAL AND MONETARY ISSUES

Introduction. The frequent crises are a vital impediment to growth in Ukraine. One of the reasons is the accumulated imbalances, which objectively arise if ignoring the economic fundamentals in economic policy implementation. The purpose of the article is to study internal imbalances in Ukraine to determine the causes and consequences of economic slack given fiscal and monetary issues. Results. A critical observation of the Quantity Theory of Money approach in the balance between aggregate demand and supply made it possible to reconstruct the Ukrainian economy’s circular motion for the last ten years. The generation of the coincident and leading composite indices confirmed a difference to be at play between aggregate supply and demand. The parametric Early Warning System modeling results showed that an additional percentage of imbalances between aggregate demand and supply increased the likelihood of crises in Ukraine by 4%. The severe influence of the debt factor on macroeconomic dynamics made it possible to build up a quarterly econometric model by retranslating the exponential trend of the domestic public debt accumulation on GDP motion. The developed Dynamic Stochastic General Equilibrium model made it possible to reconstruct the economy’s prospect to move sustainable growth path, subject to implementing the golden rule of public finance. The fiscal multiplier effect offset the short-run crowding-out effect resulting from debt accumulation for financing public investment in favor of increased production in the long term. The significant parameter in this scenario is public investments efficiency, the increased level of which has to be one of the goals of the economic policy implementation. Conclusions. Fiscal-monetary interaction is crucial for counteracting macroeconomic imbalances and activating economic dynamics. Given the rise in public debt in Ukraine due to the Covid-19 pandemic, borrowing should be cautious while performing the fiscal investment expansion to stimulate growth.

THE DEVELOPMENT OF DIAGNOSTIC TOOLS FOR ASSESSING THE LEVEL OF FINANCIAL CORPORATIONS’ STABILITY BY CASCADE APPROACH

Abstract. The scientific article is devoted to the development of a methodology for assessing the financial stability of financial corporations using the technology of cascading approach to identify weak areas in their activities and prevent the development of threats to their stable operation. The root causes of their financial instability are selected as the object of financial corporations’ financial stability assessment, and a chain of causal relationships is considered that turn the preconditions into real threats to financial stability or even signs of the corporation’s financial fragility. At the same time, the source of prerequisites for the financial stability of financial corporations in the state and depth of imbalances, which are formed both in the internal and external environment of their operation. It is proved that the tools for assessing internal imbalances in the activities of financial corporations should not be limited to financial imbalances, as their root causes can be concentrated in the organizational, managerial, institutional, conceptual component, in the field of personnel, information, technical support. Therefore, the structuring of imbalances in the activities of financial corporations is proposed to be carried out according to the theory of economic potentials and to identify the following content areas: opportunities, resources, tools, and abilities, the interaction of which forms the potential of financial corporations to operate. A three-stage method for assessing the financial stability of financial corporations has been developed, using a cascading approach, which involves the consistent diagnosis of internal imbalances in the activities of financial corporations: 1) those that arise within each component (resources, means, and capabilities) and are the area of origin of internal threats to their financial stability; 2) imbalances that arise through inter-component interaction (resources-means; abilities-means; resources-abilities) and are the sphere of manifestations of imbalances; 3) those that arise through interaction with the external environment and maximally show the impact of their condition and depth on the level of financial stability. For each of these areas, a set of indicators has been developed and an algorithm for calculating the integrated index of financial stability of a financial corporation has been constructed. The scientific and methodological approach was tested on the example of systemically important banks of Ukraine during 2017—2020, each of which is currently in a continuum of financial stability, and for most banks, there is a growing trend of quantitative measurement of its level. In general, the paper reveals a comprehensive approach to assessing the financial stability of financial corporations, which allows you to systematize those key positions in which the imbalance increases the likelihood of their financial fragility and financial instability. Keywords: financial corporations, financial stability, internal imbalances, economic potential, valuation, indicators, nonlinear rationing. JEL Classіfіcatіon C13, C81, D53, G21, G23 Formulas: 7; fig.: 0; tabl.: 3; bibl.: 22.

Ensuring the financial and economic security of Russia based on the adjustment of its internal economic imbalances

In recent decades, the Russian economy has been experiencing serious challenges and threats that jeopardise its economic security. Over the years, there has been a noticeable decline in economic growth in the Russian Federation. This study investigates the internal problems of the Russian economy associated with the economic imbalance of its structure. Notably, the key issues of ensuring financial and economic security and the implementation of the economic strategy of the Russian economy concern increasing the efficiency of the use of its economic and social resources. So far it has not been possible to overcome the factor of the raw material orientation of the country's economy; it seems that in recent years this process has slowed down. This is due to some persisting imbalances in the structure of the country's economy. First of all, this can be attributed to the lack of balance in the incomes of the population. Further, as suggested by the study, the state budget is not sufficiently balanced for effective socio-economic development. The next important component of the structural balance of the economy is the condition for the proportionality of prices for vital goods and production costs for these goods. First of all, this implies a chain of interacting prices of socially significant goods and services, such as bread; gasoline; electricity; housing costs; salary; cost of housing and public utilities; residential rent; cost of housing construction (1-2 room apartments of economy class); transport expenses and some others. In conclusion, some recommendations are given for establishing proportions and ratios that contribute to the growth of labour productivity and reduce internal social tensions in society, ensuring economically safe and sustainable development of the Russian economy and society at increasing rates.

Chaos Theory: The Case of the COVID-19 Pandemic in Wuhan, China from the perspective of international relations

The objective of the article was to reveal the international imbalances caused by the COVID-19 pandemic through the coordinates of chaos theory. Methodologically it is a critical essay based on documentary observation. To understand the current state of world politics and the balance of power in international relations, it is appropriate to use chaos theory. At the beginning of the article, the origins of chaos theory are an interdisciplinary study, and its basic concepts are introduced. The value of using chaos theory and its great potential for analysis and applications in the study of international relations is shown in the example of the 2019-2020 events in Wuhan is the capital of Hubei Province in the People's Republic of China (PRC). associated with the onset of a COVID-19 viral infection that has spread around the world. At the end of the article, conclusions are drawn and the strengths and weaknesses of the use of chaos theory in dialectical relation to international relations are revealed, both as a field of study and at the same time as geopolitical reality.

Pakistan’s search for a successful model of national political economy

ABSTRACT This article examines Pakistan’s search for a model of political economy capable of meeting the national objectives of industrialisation and accumulation of sufficient military power to deter India. It contends that the period of promise (1950s and 1960s) was made possible through heavy subsidies drawn from East Pakistan and the West. The resultant hubris blinded Pakistan’s rulers to growing discontent in the eastern wing of the country while encouraging them to take serious strategic risks against India. The unravelling of this strategy plunged Pakistan into a permanent crisis of its national political economy characterised by underdevelopment, internal and external fiscal imbalances, and a failure to mobilise national resources on a scale commensurate with its national goals. Experiments with socialism (1970s) and neo-classical economics-inspired structural adjustments (since the 1980s) have failed to deliver the desired outcomes and, in fact, entrenched Pakistan’s crisis of political economy.

МАКРОЕКОНОМІЧНІ ДИСБАЛАНСИ В УКРАЇНІ: МОНІТОРИНГ НА ОСНОВІ MIP SCOREBOARD ТА МОДЕЛЬНІ ОЦІНКИ ЇХНЬОГО ВПЛИВУ НА ЗРОСТАННЯ І СТАБІЛЬНІСТЬ

Серед гострих проблем розвитку світової економіки розглянуто проблему ідентифікації та моніторингу макроекономічних дисбалансів, що упродовж останніх десятиліть особливо актуальні для країн, різних за розміром, географічним положенням та роллю в геополітиці. Для України, що обрала європейський шлях розвитку, апробація європейської методики визначення дисбалансів є одним із домашніх завдань, яке передбачає розбудову системи заходів мікро- та макропруденційної політик, що можуть ослабити негативний вплив наявних дисбалансів і попередити появу нових.
 У контексті необхідності вчасного виявлення макродисбалансів, які гальмують економічну динаміку і призводять до розгортання фінансово-економічних криз в Україні, наукова новизна дослідження полягає у здійсненні аналітичної та кількісної оцінки масштабів нагромаджених у вітчизняній економіці зовнішніх і внутрішніх дисбалансів та емпіричній перевірці гіпотез щодо їхнього негативного впливу на темпи економічного зростання та стабільність.
 На основі європейської процедури макроекономічного дисбалансу «Тhe Macroeconomic Imbalance Procedure» (MIP Scoreboard) проведено аналіз динаміки основних індикаторів, які засвідчили наявність дисбалансів у зовнішній і внутрішній сферах, на ринку праці України. Зокрема, на тривалий характер дисбалансів вказує моніторинг показників: сальдо поточного рахунку, чистої інвестиційної позиції, ринкової частки експорту країни, реального ефективного курсу гривні, боргу сектору державного управління, безробіття серед молоді.
 Проведено регресійний аналіз і на часовому проміжку 2001—2018 рр. побудовано ряд моделей, які підтвердили наявність статистичного впливу динаміки показників, що є основними індикаторами дисбалансів у MIP Scoreboard, на темпи економічного зростання в Україні. Реалізація та прогнозні оцінки пробіт-моделі підтвердили високу ймовірність настання кризи у короткостроковій перспективі внаслідок нагромаджених і формування нових дисбалансів у різних сферах економіки України, що є загрозливим, оскільки це може призвести до зниження конкурентоспроможності країни та фінансової нестабільності.
 Наголошено на необхідності розроблення і впровадження в українську практику моніторингу MIP Scoreboard з урахуванням національної специфіки для раннього виявлення загроз стабільності та своєчасного попередження кризових ситуацій, оскільки накопичені проблеми, окрім негативного впливу на економічну динаміку, можуть також мати й негативні соціально-політичні наслідки.

PROBLEMS AND PROSPECTS OF THE WORLD BIOTECHNOLOGICAL MARKET DEVELOPMENT

Introduction. In recent decades, biotechnology industries have created the preconditions for the development of high-tech sectors in developed countries and provided opportunities for the transition to a model of sustainable development. According to experts, biotechnology in the coming decades will help improve human life, capable of becoming one of the fastest growing and most profitable sectors of the XXI century. The industry is high-tech, which determines the specifics of the innovation process and investment. The development of biotechnology is impossible without the coordinating and motivating role of the state, which will create a favorable environment for the development of biotechnology industries - an appropriate ecosystem, which will be an environment for effective interaction between all market participants. The formation of such an ecosystem depends on the formation of an effective institutional environment, the availability of resources and economic entities and the formation of effective interaction between participants through the creation of networks and the development of appropriate organizational forms.Purpose. The purpose of the article is to determine the features, problems and prospects of the global biotechnology market.Results. Features of geographical and commodity structure of the world biotechnological market are considered. It is determined that the conditions for the development of the biotechnology market are diversified sources of funding, but also relevant research and development resources, existing biotechnology companies capable of production, infrastructure that will promote the commercialization of finished products, intellectual property protection system. The factors of supply and demand are determined and it is substantiated that without purposeful state support the development of the biotechnology market is impossible.Originality. Factors of supply and demand in the biotechnological market are determined. Factors in demand for the biotechnology market in developed countries are high health care costs, high manufacturability of all industries, the desire to implement resource-saving and environmentally friendly technologies, the development of alternative energy. The main factors of supply in the biotechnology market are the availability of biotechnology companies with highly qualified specialists, the level of state support, the availability of basic technologies and the development of funding sources.Conclusion. The deep recession in the modern world economy and internal imbalances will lead to positive changes in the biotechnology industries, which will affect both product and geographical structure. The main drivers of growth will be developing countries as a result of stimulating policies to support biotechnology and cheaper resources. The dominant position in all markets will be occupied by developed countries as a result of significant investment in research and development, but large TNCs will increasingly take advantage of outsourcing, which will create additional opportunities for developing countries. The consolidation of key TNCs in biotechnology markets will be enhanced by their desire to integrate into their structure or to cooperate with research institutions and small innovative companies in various fields of biotechnology. Therefore, it is important for each country to develop its own mechanisms to intensify the development of biotechnology industries given the resource potential, production capacity and future markets.