World economy and international economic relations

Methodology for assessing globalisation development of countries

Economic Annals-XXI

Economic Annals-ХХI: Volume 168, Issue 11-12, Pages: 4-8

Citation information:
Zos-Kior, M., Kuksa, I., Samoilyk, Iu., & Storoška, M. (2017). Methodology for assessing globalisation development of countries. Economic Annals-XXI, 168(11-12), 4-8. doi: https://doi.org/10.21003/ea.V168-01

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Мykola Zos-Kior
D.Sc. (Economics),
Associate Professor,
Department of Management and Logistics,
Poltava National Technical Yuri Kondratyuk University
24 Pershotravnevyi Ave., Poltava, 36011, Ukraine
zoskior@gmail.com
ORCID ID: http://orcid.org/0000-0001-8330-2909

Iuliia Samoilyk
PhD (Economics),
Associate Professor,
Department of Economy of Enterprise,
Poltava State Agrarian Academy
1/3 Skovoroda Str., Poltava, 36003, Ukraine
iuliia.samoilyk@gmail.com
ORCID ID: http://orcid.org/0000-0003-1335-2331

Ihor Kuksa
D.Sc. (Economics),
Associate Professor,
Head of Department of Finance and Economic Cybernetics,
Lugansk National Agrarian University
44 Alchevskih Str., Kharkiv, 61002, Ukraine
igor.kuksa.23@gmail.com
ORCID ID: http://orcid.org/0000-0001-8486-2473

Marek Storoška
PhD (Social Work),
Rector,
College of International Business ISM Slovakia in Presov
1 Duchnovicovo namestie Str., Presov, 080 01, Slovak Republic
rektor@ismpo.sk

Methodology for assessing globalisation development of countries

Abstract. Under the conditions of economic globalisation, new trends are being formed in terms of social and economic development. There arises a need for a comprehensive assessment of the level of socio-economic development of countries in order to identify factors and components of effective globalisation development. Leading global institutions use different approaches and indicators to carry out such an assessment. However, they do not cover the entire spectrum of the development factors. Therefore, the issue of conducting researches to substantiate the optimal methodology for assessing countries’ socio-economic development is relevant. The authors of this research applied the following methods: logical and comparative analysis, monographic method, deduction and induction. To provide a comprehensive assessment of socio-economic development of countries in the context of economic globalisation, it is necessary to calculate an integral indicator. The authors of the article have developed a methodology for calculating such an indicator. To calculate the integral index, five indices, each of which is already an integral one, have been selected. Each of these components is calculated by world scientific, social, economic research institutes and covers all countries of the world. The importance of each component has been determined by the expert assessment method. Thus, GDP on PPPp has the highest rating of 5, the Index of Economic Freedom – 4, the Index of Global Competitiveness – 3, the Global Index of Innovations – 2, and the Index of Globalisation – 1. Luxembourg has the highest level of globalisation development among the countries under investigation with its integral index of 0.842. At the same time, the growth potential of the index is 15.8%.

It has been concluded that globalisation is a major factor affecting the current level of development in most countries of the world. To identify the level of globalisation achieved by various countries and the main factors that determine it, a methodological approach has been developed, which involves calculation of the Integral Index of Globalisation Development (IIGD), including five components: gross domestic product of the country on purchasing power parity per person, Globalisation Index, Global Competitiveness Index, Global Index of Innovations, Index of Economic Freedom, each of which has different weight, determined on the basis of expert judgment.

The obtained results allow making managerial decisions concerning the formation of development models of countries under the conditions of economic globalisation.

Keywords: Globalisation; Methodology; Assessment; Development of Countries; Integral Index of Globalisation Development

JEL Classіfіcatіon: F01

DOI: https://doi.org/10.21003/ea.V168-01

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Received 10.10.2017

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