Momentum of Industrial Growth: Methods of Calculation and Ways of Use

Author:

Kniaziev SviatoslavORCID,Soldak MyroslavaORCID

Abstract

Introduction. This study analyses countries' industrial development using the momentum of industrial growth and the product of the added value created by industry by its growth rate. It is constructed by analogy with momentum in mechanics, just as the measure of production of movement of a body depends on its mass and velocity; therefore, the measure of industrial growth is determined by the volume of production (scale factor) and the rate of its change (speed factor). Aim and tasks. This research aims to define the concept of the momentum of industrial growth and justify the possibility of its use for the identification of supranational industrial ecosystems, specifically for groups of countries whose industries are characterized by close development parameters. The subject of this research is the historical dynamics and geographical diversity of the industrial ecosystems of the states. Results. The momentum of industrial growth depends on many factors, among which we can distinguish sets of institutional, economic, scientific-technological, labour, and environmental factors. Based on the analysis of the array of 21 indicators of these sets for a sample covering 67 countries, five indicators were selected that had the closest connection with a performance indicator, such as the specific momentum of industrial growth (per capita). This indicator allows the comparison of industrial systems of different sizes and considers not only the specific industrial output but also the rate of its growth. Conclusions. The selected indicators were used to identify supranational industrial ecosystems, groups of countries whose national industries have similar development parameters. In total, using cluster analysis, five large groups of countries were singled out, which, in turn, can be divided into subgroups: industrial ecosystems with the closest characteristics. Ukraine is included in Group V “Developing countries with the lowest specific momentum of industrial growth”. Unlike the group of leaders, which included the most industrially developed states, Group V was characterised by a lower scientific-technical production level, more significant reproduction problems, and a level of human capital along with traditionally influential informal institutions. To specify the cluster factors of growth and consider them in the formation of the national industrial strategy, it is reasonable to devote particular research to the issues of their analysis in time and space.

Publisher

Viktor Koval

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