Academic journal article Asian Social Science

Socio-Economic Systems' Competitiveness Assessment Method

Academic journal article Asian Social Science

Socio-Economic Systems' Competitiveness Assessment Method

Article excerpt

Abstract

Globalization of modern economics forms new economic challenges in order to improve Russian regions' competitiveness. The regions' competitiveness significance grows substantially under conditions of the regions' historically formed economies' focus; current nature resources use potential and the advantages of the regions' geographic location for external economic cooperation. Considering these facts, current research suggests a new method of assessing the socio-economic systems' competitiveness. The authors suggest using the socio-economic system's competitiveness integral index as the basic competitiveness assessment means. This integral index comprises 4 indicators, defining the system's functionality, system, proactiveness, and organicity. It is suggested to form private competitiveness indices in long-term and short-term periods in order to assess the system's competitiveness dynamically. The private competitiveness index in short-term period comprises indicators, defining the functionality and system levels, and the private competitiveness index in long-term period comprises defining the proactiveness and organicity levels. Several economic magnitudes, interpreting the functionality, system, proactiveness, and organicity indicators are presumed for interpreting each of them. A broadened spectrum of economic magnitudes, used for interpreting the assessment indicators, facilitates the involvement of various statistic and empiric data.

Keywords: Adizes, competitiveness, region, regional economy, socio-economic system

1. Introduction

In terms of a long-term systemic crisis and general economic stagnation, competitiveness becomes especially important. The differences in regional reproduction potential level (natural resources, production capacities, work force, and transport system density) become evident in terms of a general economic crisis and overcoming its consequences.

All this makes the competitiveness a primary factor for Russian regions in terms of their successful socio-economic development and national economy reorganization. For a region, as a subject of competitive struggle, achieving competitiveness means, on the one hand, the possible development efficiency increase and, on the other - a right to take a deserved place in the federal government system and to promote the country's economic growth.

2. Background

A methodical approach to assessing different levels of socio-economic systems' (further-systems) competitiveness is viewed in the current research. The method's object universality gives the opportunity to apply it to the assessment of competitiveness of different enterprises, sectors, and regions.

To begin with, we would formulate critical remarks to the content of many methodic approaches to assessing regions' competitiveness.

First of all, each method offers a certain list of indicators, the number of which is always different (Camagni, 2002; Porter, 2003; Gardiner, Martin, & Tyler, 2004; Annoni & Kozovska, 2010; Bristow, 2012). When proving the necessity to use certain indices, the authors of assessment models have well-grounded reasons, as the necessity to use an index is based on a correlational connection between the indices' value and the extent to which the competitive advantages occur. This leads to formation of ungroundedly large number of indices in different methods, which doesn't allow formulating clearly the grounds for suggesting its increase in the regional competitiveness assessment process. Secondly, an essential feature of most competitiveness assessment models is that the values of assessment indices significantly depend on the external environment conditions. For example, that's why these models - in terms of crisis - very often show a competitiveness level sustainable decline of the regions' economic activity. On the other hand, it is clear that when the changes in external environment affect all market participants equally, their competiveness regarding each other in terms of stable internal conditions may remain the same (Hudson, 2006; Atkinson & Correa, 2007; Diamantopoulos, 2008; Huggins, Izushi, & Thompson, 2013). …

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