Assessment methodologies for industry competitiveness of regions

Abstract

Introduction. Association of Ukraine with the EU implies their regulatory and institutional convergence. One of its main components is a free trade zone, which is one of the main elements of the progressive implementation of the integration process and structural changes in the global economy. Such transformations require activation of entrepreneurship, promote economic development, taking into account the characteristics and empowering regional management to maximize the full use of new advantages. Under such conditions, one of the essential instruments of regional development is to evaluate the competitiveness of industry in the region.

Purpose. The aim of the research id the development of methodical approach to the evaluation of the competitiveness of industry in the region.

Method (methodology). In this article we have used statistical methods of processing raw data, method of economic analysis and method of economic and mathematical models.

Results. We are the first to propose the four-level model for determination of the composite index of competitiveness of industry in the region. This model justifies the combination of varied characteristics and reduces to a single integrated indicator. At the first level model provides collection and normalization of the primary statistical indicators. The use of the additive and multiplicative models in the second and third levels, respectively, allows to fully take into account the specific feature varied impact of primary statistical data on the index of industrial competitiveness in the region. At the fourth level in terms of industrial competitiveness composite index takes into account the region of its size. Index competitiveness of industry in the region is based on the set of group performance industrial competitiveness in terms of three areas: production, marketing and infrastructure. In addition, the criteria of grouping regions in terms of industrial competitiveness composite index. Assessment of industrial competitiveness of regions on the basis of the proposed methodological approach will create an analytical basis for grounded management decisions. This decision concerns the strategy of social and economic development, particularly in terms of the prospects for industrial development of the region in terms of a free trade zone with the EU.