Technological specialization of export as a factor of economic growth

Authors

DOI:

https://doi.org/10.31617/3.2023(131)01

Keywords:

export, economic growth, technological specialization, Production Complexity Index, GDP per capita.

Abstract

In the conditions of increasing globalization and deepening international trade, the technological specialization of an economy can be considered as one of the directions for enhancing the competi­tiveness of the countries worldwide. A useful tool for assessing the countryʼs ability to acquire high-tech competitive advantages is a comparative analysis of the structure and specialization of export with developed countries, which will make it possible to assess the potential of export-oriented development based on technological specialization. The purpose of the article is to determine the specialization of Ukraineʼs foreign trade by comparing the structure and complexity of exports with economically developed countries. This article compares Ukraineʼs export structure across various economic activities with selected developed countries, confirming the trend of its raw material specialization. An analysis of the technological level of Ukraineʼs exports and selected countries is conducted using the Product Complexity Index, which for a more thorough assessment of the technological level and taking into account the dispersion of internal specialization, it is proposed to define it as a weighted average value within the type of economic activity. On the basis of correlation-regression analysis, common regularities in the GDP per capita dynamics as an economic growth indicator and the Product Complexity Index of the selected countries are confir­med. The obtained results prove the prospect of implementing a develop­ment strategy for Ukraineʼs economy aimed at increasing the level of technology and complexity of products, which will ensure the moving away from the raw material export orientation, and enhancing export competitiveness. This approach is particularly relevant in the context of war and the post-war period of economic recovery in the country.

Author Biographies

Nataliya KALYUZHNA, State University of Trade and Economics

Doctor of Sciences (Economics), Professor, Professor of Department of World Economy

Sviatoslav DASHKOV, State University of Trade and Economics

masterʼs degree, PhD student, Department of World Economy

References

Country & Product Complexity Rankings. Growth Lab Center of International Development at Harvard University. 2020. https://atlas.cid.harvard.edu/rankings/product

Download entire World Economic Outlook database. International Monetary Fund. 2022. https://www.imf.org/en/Publications/WEO/weo-database/2022/April/download-entire-database

EU trade since 1999 by SITC [DS-018995]. EUROSTAT Database. 2022. https://ec.europa.eu/eurostat/web/main/data/database

Goods and services trade by country. Stats NZ Tatauranga Aotearoa is New Zealandʼs official data agency. 2021. https://www.stats.govt.nz/information-releases/goods-and-services-trade-by-country-year-ended-december-2021/

Hidalgo, Ce'sar A., Hausmann, R. (2009). The Building Blocks of Economic Complexity. Proceedings of the National Academy of Sciences. Vol. 106 (26). рр. 10570-10575. https://doi.org/10.1073/pnas.0900943106

Human Development. Report 2021/2022. https://hdr.undp.org/system/files/documents/global-report-document/hdr2021-22pdf_1.pdf

International Standard Industrial Classification of All Economic Activities (ISIC), Revision 3.1. https://unstats.un.org/unsd/publication/seriesm/seriesm_4rev3_1e.pdf

Lee, J. (2011). Export specialization and economic growth around the world. Economic Systems. Vol. 35(1). рр. 45-63. https://doi.org/10.1016/j.ecosys.2010.11.002

Merchandise Exports By Commodity Division. Singapore Government Agency, Departament of statistics of Singapore. 2022. https://tablebuilder.singstat.gov.sg/table/TS/M451031

Nepelski, D., De Prato, G. (2020). Technological complexity and economic development. Review of Development Economics. Vol. 24(2). pp. 448-470. https://doi.org/10.1111/rode.12650

The Technological Specialization of Advanced Countries A Report to the EEC on International Science and Technology Activities. https://link.springer.com/book/10.1007/978-94-015-7999-5

Zakrajsek, E., Harrigan, J. (2006). Factor Supplies and Specialization in the World Economy. Federal Reserve Bank of New York Research Paper Series. Staff Report, No. 107. 51 Р. https://doi.org/10.2139/ssrn.933375

Kuzminov, S., & Makotkina, O. (2018). Export-oriented development: the limits of economic growth. Academic review, 2 (49), (pp. 5-19). https://doi.org/10.32342/2074-5354-2018-2-49-1

Oleshko, A., Shatska, Z., & Rovniahin, O. (2022). Smart specialization of Ukraine in the perspective of post-war economic recovery. Electronic magazine "Efficient Economy", 5. https://doi.org/10.32702/2307-2105-2022.5.9

Osipova, L. (2022). The dynamics of Ukraineʼs exports in the conditions of a full-scale war: problems and possible ways to eliminate them in the context of European integration. Bulletin of the Khmelnytskyi National University, 6, Vol. 2, (pp. 50-54). https://doi.org/10.31891/2307-5740-2022-312-6(2)-9

Platonova, I. (2019). Export as factor of economic growth of Ukraine in the conditions of international integration. Scientific Bulletin of the Uzhhorod National University, Vol. 24, (Part 3), (pp. 37-41).

Commodity structure of foreign trade. State Service of Statistics of Ukraine. https://www.ukrstat.gov.ua

Cherkas, N. (2006). Technological export and dynamics of economic growth in Ukraine. Interna-tional economic policy, 4, 5-28.

Published

2023-12-22

How to Cite

KALYUZHNA Н., & DASHKOV С. (2023). Technological specialization of export as a factor of economic growth. Foreign·trade:·economics,·finance,·law, 131(6), 4–20. https://doi.org/10.31617/3.2023(131)01

Issue

Section

INTERNATIONAL TRADE