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The determinants of competitiveness of Ukrainian regions

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  • Zakharchenko S.

Abstract

The author suggests using the method of factor analysis to estimate the competitiveness of Ukrainian regions based on assessments derived from the methodology of International Institute for Management Development (IMD-Lausanne). It allows to define the power of factor impact on the resulting competitiveness indicators of regions (according to M. Porter, it is economic performance) on the part of individual subfactors and to determine two main influencing factors namely the financial-economic and institutional ones. The first factor is basically formed from the following variables (with factor loadings over 0.7): technological and scientific infrastructure, business efficiency, labor market and finances, attitudes and values; while the second one, as was mentioned above, is formed by scientific infrastructure and institutional framework. Considering each factor's scores and the impact on resulting indicators (positive or negative) the author identifies seven groups of regions in Ukraine and recommends similar strategies for each group of regions to improve their competitiveness.

Suggested Citation

  • Zakharchenko S., 2015. "The determinants of competitiveness of Ukrainian regions," Economy and Forecasting, Valeriy Heyets, issue 3, pages 135-144.
    • Handle: RePEc:eip:journl:y:2015:i:3:p:135-144
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