INNOVATIVE DEVELOPMENT IN THE CONDITIONS OF EXPORT-ORIENTED AND IMPORT-SUBSTITUTING MODELS OF INDUSTRIALIZATION


Keywords: export-oriented industrialization, import-substituting industrialization, gross fixed capital formation at purchasing power parity, costs of machinery and equipment at purchasing power parity.

Abstract

Topicality. The actuality of problem is due to the need to reorient the economy of Ukraine to innovative development and change in this regard, the model of economic policy.
Aim and tasks. The aim of the study is to determine and compare the relative costs of research and development in connection with the relative values of gross fixed capital formation and costs of machinery and equipment in parity for countries that implement import-substituting and export-oriented industrialization to justify the most effective model innovative economic policy.
Research results. The studied economic indicators are calculated on the basis of the purchasing power parity of the currency (PPP). Calculations of the volume and structure of accumulation in parity indicators show certain patterns. The most important of them is the gap between the values of the gross fixed capital formation and its most important part – the cost of machinery and equipment, calculated in national currency and per PPP. Moreover, such a gap in the countries of export-oriented industrialization is small, while in the countries of import-substituting industrialization and in Ukraine, as an export-oriented economy, it is very significant. The general pattern is a higher share of accumulation in GDP in settlements in the national currency than in settlements in PPP. As a result, the calculations of the gross fixed capital formation and the cost of machinery and equipment in the national currency create an unreasonably optimistic view of the prospects for innovative economic development. It is of scientific interest to compare the structure of accumulation in the countries of export-oriented industrialization, import-substituting industrialization, and in Ukraine as an export-oriented economy. Thus, the share of accumulation as a part of GDP per capita in the countries of export-oriented industrialization is maintained at 22-42%, and the cost of machinery and equipment – at 4-8%. Approximately the same indicators remain in the calculations in the national currency. In the countries of import-substituting industrialization, the share of accumulation as a share of GDP per capita is maintained at 11-23%, and the cost of machinery and equipment – at 2-5%. Ukraine's economy, if the calculations are made in the national currency, shows a structure of accumulation close enough to that of import-substituting industrialization. However, according to the PPP, its economy provides a much smaller share of GNP and machinery and equipment in GDP – 9-13% and 2-3%, respectively.
Conclusion. Distortion of accumulation indicators is associated with a significant deviation of the official exchange rate of the national currency from its purchasing power parity. The small scale of accumulation calculated in parity indicators characterizes the narrow base for research and development and the small potential for their introduction into production.

Author Biography

LYUDMILA ZHDANOVA

Dr. Sc.(Economics), Associate prof.
National Economic University, Odessa, Ukraine
vul. Preobrazhens`ka, 8, Odesa, Ukraine, 65026

References

1. The World Bank (2013) Measuring the Real Size of the World Economy. The Framework, Methodology, and Results of the International Comparison Program – ICP. 696 р. [in English].
2. The World Bank (2008) Global Purchasing Power Parities and the Real Expenditures. 2005 International Comparison Program by the2 International Bank for Reconstruction and Development. 231 р. [in English].
3. The World Bank (2014) Purchasing Power Parities and the Real Size of World Economies. A Comprehensive Report of the 2011 International Comparison Program. 328 p. [in English].
4. The World Bank (2020)Purchasing Power Parities and the Size of World Economies. Results from the 2017 International Comparison Program. 224p. [in English].
5. Pogosov, I.A. (2012). Tendentsii vosproizvodstva v Rossii i problemy modernizatsii ekonomiki. [Reproduction trends in Russia and problems of economic modernization] Moscow; St. Petersburg: Nestor-istoriya [in Russian].
6. Ivanova, N.I., Machavariani, G.I. (2015). Rossiya v mirovoy ekonomike: uroven i tendentsii razvitiya [Russia in the world economy: level and development trends]. Zhurnal novoy ekonomicheskoy assotsiatsii – Journal of the New Economic Association, 2 (26), 231-236 [in Russian].
7. Kosarev, A.E. (2014). Paritet pokupatelnoy sposobnosti valyut – unikalnyy instrument mezhdunarodnykh sopostavleniy [Purchasing power parity of currencies – a unique tool for international comparisons]. Voprosy statistiki – Statistics issues, 5, 63-72 [in Russian].
8. Kosarev, A.A. (2021). Stratifikaciya ekonomik ES/OESR i SNG na osnove pariteta pokupatelnoj sposobnosti 2017 g.[EU / OECD and CIS economies stratification based on 2017 purchasing power parity]. Problemy prognozirovaniya – Forecasting problems, 1, 70-82.
9. Zhdanova, L.L. (2015). Rozraxunky VVP dlya krayin z rozbizhnistyu oficijnogo obminnogo kursu valyut i parytetu kupivel`noyi spromozhnosti [GDP calculations for countries with a discrepancy between the official exchange rate and purchasing power parity]. Prykladna statystyka: problemy teoriyi ta praktyky. Applied statistics: problems of theory and practice, 17, 54–58 [in Ukrainian].
10. Zhdanova, L.L. (2020). Sukupnyi popyt v Ukraini: struktura i dynamika v natsionalnii valiuti i v parytetnykh pokaznykakh [Aggregate demand in Ukraine: structure and dynamics in the national currency and in parity indicators]. Ekonomichnyi analiz. Zbirnyk naukovykh prats. Ternopil. V 30, 4,7-15 [in Ukrainian].
11. Zhdanova, L.L. Investytsyonnii spros v stranakh Chernomorskoho rehyona Prychornomorki ekonomichni studii. Naukovyi zhurnal. Vypusk 60. Chastyna 2, 2020. S.32-39 [in Ukrainian].
12. Zndanova, L.L. Realnye razmery nakopleniya osnovnogo kapitala. Ekonomika i upravlenie v HKHI veke: nauka i praktika. 2017. №4. S.127-140 [in Ukrainian].
13. The World Bank Data. GDP per capita, PPP (constant 2017 international $). Retrieved from: https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.KD?view=chart#Text (accessed: 30.07 2021). [in English]
14. Zhdanova, L. L. (2000). Innovacionnyj tip vosproizvodstva v usloviyah globalnoj konkurencii [Innovative type of reproduction in the conditions of global competition]. Ekonomicheskie innovacii. №7. S.36-42 [in Ukrainian].
15. State Statistics Service of Ukraine (2021). Tablytsia vytraty-vypusk Ukrainy v osnovnykh tsinakh. Statystychnyi zbirnyk. Kyiv. Derzhavna sluzhba statystyky Ukrainy [Input-output table of Ukraine in basic prices. Statistical collection. 97 p. [in Ukrainian].
16. The World Bank Data. Industry (including construction) % GDP. https://data.worldbank.org/indicator/NV.IND.TOTL.ZS?view=chart (accessed: 30.07 2021). [in English].
17. The World Bank Data. R&D, % GDP. Retrieved from: https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS?view=chart (accessed: 30.07 2021). [in English].
18. Zhdanova, L.L. & Marhasova, V. Gh. (2017). Ukraina u svitovii ekonomitsi: vymir vartisnykh pokaznykiv rozvytku [Ukraine in the world economy: measurement of the cost indicators of development]. Statystychne ta ekspertno-analitychne zabezpechennia upravlinnia stalym rozvytkom ekonomiky i sotsialnoi sfery – Statistical and expert-analytical support of management of sustainable development of economy and social sphere (pp.38-50). Chernihiv: Chernih. nac. tehnol. un-t [in Ukrainian].
19. Zhdanova, L.L. (2020). Institutions for development in socio-economic system of modern Ukraine Economic innovations. V. 22, Issue 1(74, 72-79. [in English].
20. Lajko, O.I., Umanecz, T.V., Shlafman, N.L. (2021). Strategichni napryamky zdijsnennya podatkovogo regulyuvannya ekonomichnogo rozvytku v umovax reform [Strategic directions of tax regulation of economic development in the conditions of reforms]. Ekonomichni innovaciyi, 23(1(78), 115-125. DOI: https://doi.org/https://doi.org/10.31520/ei.2021.23.1(78).115-125 [in Ukrainian].
Published
2021-08-20
How to Cite
ZHDANOVA, L. (2021). INNOVATIVE DEVELOPMENT IN THE CONDITIONS OF EXPORT-ORIENTED AND IMPORT-SUBSTITUTING MODELS OF INDUSTRIALIZATION. Economic Innovations, 23(3(80), 117-126. https://doi.org/https://doi.org/10.31520/ei.2021.23.3(80).117-126