World practice of structural and sectoral transformations

Abstract

Background. Throughout the history of economic thought, structural changes were considered a key catalyst for economic growth and development. The world practice as well has accumulated a considerable empirical evidence of structural transformations in national economies. Despite the different specifics of structural reforms implementation, the common feature of successful experience in this field is the active participation of government in transformation processes. After all, only market forces themselves cannot always direct the processes of structural shifts in an effective way. This determines the topicality of revealing the most effective structural policies applied to provide outstripping economic development.
Analysis of recent research and publications. A number of Ukrainian scientists studied the international experience of structural changes in various economies. While paying tribute to their work, it should be noted that experience of providing structural shifts in the new industrialized countries of Eastern and Southeast Asia, Latin America and a number of other countries still lacks proper attention. This particular experience may be more relevant to Ukraine in the context of achieved development level and available resources for structural policy implementation.
The aim of article is to summarize and substantiate the most effective world practices and approaches to formation and implementation of policies to ensure structural and sectoral transformations in national economy.
Results. The international experience of forming and implementing economic policy aimed at optimizing the structure of national economies is revealed. The main directions of government economic regulation, which proved to have most considerable impact in achieving the goals of outstripping development through structural and sectoral shifts, are determined. The process of structural policy transformation in the countries throughout the world according to development level of productive forces is researched.
Conclusion. According to the results of empirical analysis, the most effective areas of government support in structural reforms implementation are following: a) financial support of structural shifts through state development banks and venture funds; b) establishment of state enterprises in strategic industries, demand boost for promising products through public procurements; c) promoting innovation activity of enterprises through subsidizing R&D, launching state research programs, opening technological parks and business incubators to attract knowledge intensive FDI; d) active development of market infrastructure, competitive environment and education system.