The Interrelation between Economic Growth and National Economic Competitiveness: The Case of Ukraine
Halyna Fyliuk, Ihor Honchar, Vasylyna Kolosha
Keywords:
economic growth, national economic competitiveness, GDP per capita, purchasing power parity
Abstract:
Globalization causes large-scale changes in technological, economic, political and social fields of
social development. These changes have a contradictory impact on the development of national
economies and their competitiveness. Ceteris paribus, there is a tight interrelation between
country’s economic competitiveness and a rate of its economic growth: the higher the rates of
economic growth in the country, the bigger chance for growth in its national competitiveness
and vice versa. Various indicators can be used characterize and estimate a country’s competitiveness,
with parameters featured in the Global Competitiveness Index (GCI) playing a special role.
This index is to some extent abstract, and provides only general idea about the type competitiveness
formation of a country. It does not allow estimations regarding trends in economic development,
as it aggregates 114 indicators which have multidirectional impacts. The key characteristic
of national economic competitiveness is a particular country’s ability to achieve steady high
growth rates (World Economic Forum). For this reason, we suppose that the one of the main
indicators of competitiveness level is GDP per capita, a factor reflects consumption volumes
per capita and is highly correlated with the welfare level in the country. The purpose of this
research is a comparative analysis of the competitiveness of the Ukrainian economy along with
the population’s standard of living with that of other countries, along with the reasoning for the
assumption that economic growth rates are necessary for Ukraine to achieve the competitiveness
level of other developed countries. We argue that Ukraine and other countries with an average
income of 8000-9000 US dollars GDP per capita (PPP) annually should ensure an annual relative
growth acceleration of at least 8% to achieve the level of economic development of more
highly developed countries.
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 10.7441/joc.2019.03.04
Fyliuk, H., Honchar, I., & Kolosha, V. (2019). The Interrelation between Economic Growth and
National Economic Competitiveness: The Case of Ukraine. Journal of Competitiveness, 11(3), 53–69. https://doi.org/10.7441/joc.2019.03.04
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