Competitiveness, competition, market: macrosystem aspects

Economic Annals-ХХI: Volume 142, Issue 7-8(1), Pages: 28-31

Citation information:
Cherleniak, І. (2014). Competitiveness, competition, market: macrosystem aspects. Economic Annals-XXI, 7-8(1), 28-31. https://ea21journal.world/index.php/ea-v142-07/

Ivan Cherleniak
D.Sc. (Public Administration),
Senior Researcher,
Professor,
Uzhhorod National University
3 Narodna Sq., Uzhhorod, 88000, Transcarpathian Region, Ukraine

Competitiveness, competition, market: macrosystem aspects

Abstract. Introduction. The concept of free competition is one of the pillars of the liberal economic model, which demonstrated acceptable results for the economies of some developed capitalist countries in the industrial age. The liberal model was not effective for transitive economy of Ukraine. This demonstrates the fundamental problems of Ukraine’s economic mechanism component coordination, including, perhaps, the most important: competition, market, competitiveness. The purpose of the article is to develop alternative modifications of the semantic content for the triad competition-market-competitiveness in terms of post-industrial era challenges and transitive economy problems. Results. While formulating the development of the national economy competitiveness model, it must born in mind that the concept and model of management based at increasing the efficiency of production factors, which, in terms of complexity theory, corresponds only to the natural level of complexity. The presence of two management spaces in the economy today – based on the factors of complexity and the factors of organized complexity – changes the meaning of Competition and Market content. The «unlimited» informational power of market is realized not for all phases of economic development (growth), i.e. not for all modes of self-organization of the economic system. In terms of coordination the theory of multilevel hierarchical systems, this problem solving needs coordination of two groups of processes and variables: 1) the determinants and consequences of focused management decisions; 2) the determinants and consequences of diffuse «acts-solutions» market, distributed among dense continuous group of market actors. This applies to particular market space. The difficulty is increased by the fact that in today’s organized complexity «world market» forms in several branches quasi-autonomic market spaces, namely: financial market, commodity market, the market of high technologies.

Conclusion. In terms of the state competitiveness external dimension, a regime of economic self-organization should originate in the country for a paradigm shift in pursuit of modernization. The political and economic self-install regime will appear only when the basic institutions of the market mechanism come into action. On this basis, the first order of self-organization can be activated. The success of transitive economy of Ukraine depends on the concept of competitiveness of state-country-society, adopted by society. It should present dialectically coordinated and developed concept of competition, efficiency factors of production, efficiency of the state. This concept and practice should form the second order of self-organizing economy. The model-practice of competitiveness based on a new concept of «competitiveness-efficiency-competition» at the macrolevel should not only reflect the current position of the national economy, but also form the ability to shape the country and its regions, territory corporations and companies, to strengthen in all dimensions.

Keywords: Competition; Competitiveness; Economic System; Organized Complexity; Self-Organization

JEL Classification: E13; O33; P11

References

1. Mazaraki, A., & Melnyk, T. (2012). Development determinants of Ukraine’s foreign trade innovative products. Visnyk KNTEU (Herald KNTEU), 2, 5-20 (in Ukr.).
2. Cherlenyak, I. I., & Kurey, O. A. (2013). Conceptual problems of Ukraine’s economic system post-socialist transformation identifying. Ekonomichnyi Chasopys-XXI (Economic Annals-XXI), 12(2), 3-6
   Retrieved from https://ea21journal.world/index.php/ea-v136-01/ (in Ukr.)
3. Soskin, O. I. (2010). The model of people’s capitalism as the basis of Ukrainian economy competitive development. Ekonomist (The Economist), 2, 21-25 (in Ukr.).
4. Cohen, S., & Zysman, J. (1987). Manufacturing Matters. The Myth of the Post-industrial Economy. New York: Basic Books.
5. Porter, M. (1980). Competitive Strategy. London: Free Press.
6. Porter, M. (1990). The Competitive Advantage of Nations. London: The Macmillan Press Limited.
7. Mesarovic, M., Macko, D., & Takahara, Y. (1970). Theory of Hierarchical Multilevel System. New York: Academic Press.
8. Hayek, F. (1991). The Use of Knowledge in Society. In Austrian Economics. A Reader. Michigan: Hillsdale.
9. Hayek, F. (1980). Individualism and Economic Order. Chicago: University of Chicago Press.
10. Bell, D. (1999). The coming post-industrial society. Experience of social forecasting (Trans. from Eng.). Moscow: Academia.

Received 18.05.2014