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УДК 316.3:330.34 ББК 65.050+65.052+65.26+65.9(2Рос) С69

Ya. Butenko. Algorithm of assessment of the Asiatic countries’ competitiveness on basis of macroeconomic characteristics (in English) // International Scientific and Practical Conference “The impact of socio-economic crises on the development process of economic globalization” – Saratov: Scientific Book, 2009. – Part 1. – pp. 3 – 7.

ISBN 978-5-9758-1073-1

© 2009 Yana Butenko


Ya.Butenko ALGORITHM OF ASSESSMENT OF THE ASIATIC COUNTRIES’ COMPETITIVENESS ON BASIS OF MACROECONOMIC CHARACTERISTICS Territory of the every country has own administrative and territorial division. As a rule countries’ municipal formations substantially differ each other different geographical, natural and climatic, socio-economic and other factors. But in spite of big aggregate of distinguishing features there is a common characteristic. By means of this characteristic it’s possible to make the comparative analysis of the territories (both country and smaller taxonomic units) with the purpose of finding the differential levels of their development. This characteristic is called competitiveness. It’s socio-economic category which is characterized by degree of satisfaction at some aspects in comparison with similar socio-economic systems. Also competitiveness is territorial attraction for business and population as against others. The first point to be noted is that competitiveness of the territories is considered in more detail only for countries. Although in my opinion it’s necessary to explore competitiveness of the smaller territorial entities (regions, provinces, macro regions, municipal formations, urban and rural settlements and so on). At present time in foreign literature there are works where authors consider that competitiveness – the important factor for development of any territories, but such works is not enough. In general competitiveness of the territories depends on contrastive advantages: environment; operating benefits of the socio-political, state-legal systems; levels of development science, machinery, technology; using on practice scientific and technical achievements. Consequently competitiveness simpliciter depends on level of development science and the degree of materialization scientific results in management decisions of government bodies and manufacturing processes. Besides competitiveness depends on: living standard; population’s incomes; level of social service; development of infrastructure; ecological situation and other socio-economic factors. For many countries and their territorial constituents there is one from main factors which is hampering the development of the territory. This factor is the potent differentiation of the levels of development in the municipal formations. On this reason it’s necessary to raise and equalize the characteristic of territories’ competitiveness. Based on estimation procedure of the rates of countries’ competitiveness it’s advisable in my opinion to consider the territorial appraisals: 1) economical and political appraisal (for entrepreneurs). In the position of juridical persons and natural persons competitiveness is territory’s appeal of the municipal formation for business transactions; 2) social and economic appraisal (for people). In the position of people competitiveness is territory’s appeal from the point of view conditions of life and quality of life. Calculate characteristics of competitiveness for such countries as Afghanistan, China, India, Japan, Philippines, Turkey and Vietnam. Algorithm of the estimation procedure of the rates of countries’ competitiveness from the position of business involves the following stages: 1) selection of the priority factors which are determining a territory’s appeal for business transactions; 2) separation among factors minimum value and maximum value according to influence on aggregate territorial rate; 3) equalization the minimum value (if this characteristic influence on the rates of competitiveness auspicious) or maximum value (if this characteristic influence on the competitiveness’s rates adversely) to unity for every factor;


4) division of values for other municipal formations by value of characteristic equated unity. In such a way all factors’ characteristics is bringing to nondimensional number and they characterizes differential factorial rate (positive with sign «plus», negative with sign «minus»); 5) summation the differential factorial rates by every country and determination the integral quantitative rates of competitiveness. Using this algorithm it’s permissible to define rate of competitiveness both countries and territories inside counties. Calculate characteristics of competitiveness (table 1, 2) and represent the received results by means of graphical chart 1. As a consequence of assessment the integral quantitative rates it’s possible to distinguish the leaders among countries – Japan and China; outsiders among countries – Afghanistan and Philippines. It’s significant that difference between integral characteristics country-leader and country-outsider amount to 420 times more. Accordingly in order to raise country’s competitiveness it needs to raise and equalize the competitiveness of the smallest taxonomic units in this country. Table 1. The main factors influencing on countries’ competitiveness from the position of business Growth rate of the gross domestic product (%) +

Volume of the foreign commerce (millions US $) +

58,0

2,0

48362,0

16,2

435,0

Density of roads with hard surface (km / 10000 km²) + 42,0

5,0

45,0

28,0

11,3

290141,0

9885,2

146612,0

1088,0

76,0

489,0

21300,0

37,0

7,0

70429,0

6065,9

22176,0

3174,0

198,0

337,0

Japan

67700,0

23,0

14,3

760053,0

10047,9

1140051,0

21956,0

533,0

173,0

Philippines

48100,0

47,0

3,6

54539,0

668,9

10548,0

912,0

30,0

288,0

Turkey

23000,0

45,0

6,2

66851,0

1882,4

40159,0

1125,0

108,0

121,0

Vietnam

38200,0

54,0

5,5

53265,0

1062,9

5472,0

833,0

79,0

34,0

Ablebodied citizens (thousands people) +1

Unemployment rate (% from ablebodied citizens) –2

Afghanistan

10000,0

China

700000,0

India

Manufacturing industry (millions US $) +

Extractive industry (millions US $) +

Density of railroads (km / 10000 km²) +

Quantity of the airports (pcs.) +

Table 2. Differentiated and integral rates of the countries’ competitiveness from the position of business

Ablebodied citizens Afghanistan

1 2

1,0

Unemployment rate from ablebodied citizens 1,0

Growth rate of the gross domestic product

Volume of the foreign commerce

Extractive industry

Manufacturing industry

Density of roads with hard surface

Density of railroads

Quantity of the airports

Integral characteristics

1,0

1,0

1,0

1,0

1,0

1,0

1,3

9,3 1084,9

China

70,0

0,5

5,7

6,0

610,2

337,0

25,9

15,2

14,4

India

2,1

0,6

3,5

1,5

374,4

51,0

75,6

39,6

9,9

558,2

Japan

6,8

0,4

7,2

15,7

620,2

2620,8

522,8

106,6

5,1

3905,5

Philippines

4,8

0,8

1,8

1,1

41,3

24,2

21,7

6,0

8,5

110,3

Turkey

2,3

0,8

3,1

1,4

116,2

92,3

26,8

21,6

3,6

268,0

Vietnam

3,8

0,9

2,8

1,1

65,6

12,6

19,8

15,8

1,0

123,4

«+» – positive factor «–» – negative factor


4000 3500 Competitiveness

3000 2500 2000 1500 1000 500 0 Afghanistan

China

India

Japan

Philippines

Turkey

Vietnam

Countries

Chart 1. Rates of countries’ competitiveness from the position of business Population also estimates territories’ competitiveness from the point of view of appeal on the basis of social, economic, ecological and other factors. The results of assessment territorial competitiveness exert to decision-making in connection with changing place of residence (besides the migration processes touch not only countries, but countries’ regions, provinces and so on). The problem of population’s migration is conditioned the low standard of living and poor appeal, in other words low territories’ competitiveness for population. Algorithm of the estimation procedure of the differentiated and integral rates from the position of population involves the following stages: 1) selection of the more substantial factors for family (person) which are determining economical and social conditions their life; 2) determination the minimum and maximum values of factors according to influence on integral rate for every country (table 3); 3) equalization the minimum value or maximum value to unity for every factor; 4) definition the relative numbers of other activities for this factor (table 4); 5) summation the differential factorial rates by every country and determination the integral rates; 6) comparison countries according to the integral rate of the competitiveness (chart 2). Table 3. The main factors influencing on countries’ competitiveness from the position of population Able-bodied citizens (thousands people) +

Unemployment rate (% from ablebodied citizens) –

Index of the people' literacy (%) +

Afghanistan

10000,0

58,0

31,5

Gross domestic product calculated acoording to purchasingpower parity per head (US $) + 800,0

6701,0

5,3

195,0

China

700000,0

28,0

81,5

3600,0

633,0

15,0

1203,0

India

21300,0

37,0

52,0

2200,0

2173,0

28,2

5207,0

Japan

67700,0

23,0

100,0

24900,0

542,0

1538,0

1689,0

Philippines

48100,0

47,0

94,6

3800,0

849,0

26,5

264,0

Turkey

23000,0

45,0

82,3

6800,0

917,0

83,0

245,0

Vietnam

38200,0

54,0

93,7

1950,0

2411,0

5,0

298,0

Quantity of the people per one doctor (man) –

Health protection expenditure per head (US $) +

Quantity of new dwelling houses (thousands pcs.) +


Table 4. Differentiated and integral rates of the countries’ competitiveness from the position of population

Afghanistan

Able-bodied citizens

Unemployment rate from ablebodied citizens

Index of the people' literacy

Gross domestic product calculated acoording to purchasingpower parity per head

1,0

1,0

1,0

1,0

Quantity of the people per one doctor

Health protection expenditure per head

Quantity of new dwelling houses

Integral characteristics

1,0

1,1

1,0

7,1 86,9

China

70,0

0,5

2,6

4,5

0,1

3,0

6,2

India

2,1

0,6

1,7

2,8

0,3

5,6

26,7

39,8

Japan

6,8

0,4

3,2

31,1

0,1

307,6

8,7

357,9

Philippines

4,8

0,8

3,0

4,8

0,1

5,3

1,4

20,1

Turkey

2,3

0,8

2,6

8,5

0,1

16,6

1,3

32,2

Vietnam

3,8

0,9

3,0

2,4

0,4

1,0

1,5

13,0

400 350

Competitiveness

300 250 200 150 100 50 0 Afghanistan

China

India

Japan

Philippines

Turkey

Vietnam

Countries

Chart 2. Rates of countries’ competitiveness from the position of population

Summarized data of the quantitative countries’ rates from the position of population give the opportunity to find the advanced countries: Japan and China; lagging countries: Afghanistan and Vietnam. Differentiation the integral activities between leading county and county-outsider amounts to 50 times more. It needs to note that the opinions of business’s representatives and population not always coincide (chart 3).


Сompetitiveness from the position of business

Сompetitiveness from the position of population

4000

Competitiveness

3500 3000 2500 2000 1500 1000 500 0 Afghanistan

China

India

Japan

Philippines

Turkey

Vietnam

Countries

Chart 3. Rates of countries’ competitiveness from the position of business and population Consequently presented above procedure the appraisal rates of the territories’ competitiveness, to my mind, allows to use tools of the universal category of the economics and management – territories’ competitiveness with the purpose of their development and professional direction. This procedure and algorithms of competitiveness’s calculation allows to fully appreciate standing territories from the positions of business and people. This procedure enables to realize correlation analysis of the countries and deduce the generalized rate of the territories which is synthesizing businessmen’ and people’ opinions. It offers an opportunity for business the more confidently accomplish their activities on selected territory. But this selected territory must be attractive for population, because without people any business will go phut. From the position of business the population represents the «human capital» and ensures demand for production. But the most important thing consists in fact that presented above procedure allows to discover the degree of differentiation in development all taxonomic units. So in case of before-the-fact detection the great difference between levels of territories’ development and realization of the appropriate measures with the purpose of smoothing this difference, it’ll rise the competitiveness not only territories inside county, but in the whole country.


Бутенко Яна Андреевна высоко квалифицированный исследователь, преподаватель и автор работ по менеджменту и экономике. Полный список научных публикаций доступен по адресу: http://yana-butenko.com/ru/publikacii

Yana Butenko is an enthusiastic researcher, lecturer and author, who is passionate about Management and Economics. The full list of her scholarly publications is available at: http://yana-butenko.com/publications

E-mail: info@yana-butenko.com Website: www.yana-butenko.com


Algorithm of assessment of the Asiatic countries’ competitiveness  

In the article it was shown the author’s technique of estimation of territories' competitiveness which allows to estimate a rating of the te...

Algorithm of assessment of the Asiatic countries’ competitiveness  

In the article it was shown the author’s technique of estimation of territories' competitiveness which allows to estimate a rating of the te...

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