USAGE OF ASYMMETRY INDICATORS IN INTERNATIONAL ECONOMIC STUDIES

Main Article Content

Ivan ZAGORUIKO
Lesia PETKOVA

Abstract

Introduction. The process of globalization inherent in the modern world economy is intensifying international economic, technological and socio-political competition. The problem of objective comparison of the state of national economies of different countries is becoming more and more relevant. In developed democratic countries, the results of such comparisons become the basis for correcting the course of economic policy. In countries with authoritarian and totalitarian regimes, a statistically based assessment of the international state of the national economy becomes a strong argument in favor of changing the economic policy.


Purpose. The purpose of the study is to build indicators and models characterizing aggregate expenditures of national economies relative to the corresponding mean and extreme global indicators.


Results. The indicators of symmetry and asymmetry, characterizing aggregate expenditures of the national economy relative to mean and extreme global indicators are proposed. These indicators are generalized for the case of multiple countries. A geometric model of "leakages – injections", which allows to aggregate and compare the normalized values of aggregate expenditures of different countries, is proposed. The problems of linear programming for the construction of world frontiers of mutually extreme flows of leakages and injections are set.


Originality. The indicators of symmetry and asymmetry are presented in the form of a one-parameter nonlinear function, in which the ratio of deviations of the country's national indicator from its extreme world values is its argument. All flows of aggregate expenditures are normalized by dividing by the sum of their leakages (or injections) from the circular flow of income. The geometrical model "leakages – injections" is formed by combining four coordinate systems, rotated relative to each other by 90°. In this model, injections (exports and investments) are displayed on one pair of parallel semi-axes, and leakages (imports and savings) on the other one. The model makes it possible to determine the centers of symmetry of the national and world economy and to analyze their mutual location. A pair of mutually opposite world frontiers is built in each quadrant of the model. The upper right part of the envelope of states of countries in a certain quadrant is the world frontier of mutually maximal flows of aggregate expenditures. The lower left part of this envelope is the world frontier of mutually minimal flows.


Conclusion. Existing approaches to the use of DEA methods should be supplemented in two directions. Firstly, it is advisable to apply the idea of the world frontier not only to compare the technological efficiency of countries, but also to a wider range of issues, in particular, to the analysis of aggregate expenditures of national economies. Secondly, in many cases it is logical to construct a pair of mutually opposite world frontiers. This makes it possible to determine the state of the country relative to the extreme target values of the studied indicators.

Article Details

Section
Статті

References

Abbas, Y. and Daouia, A. (2023). Understanding World Economy Dynamics Based on Indicators and Events. Toulouse School of Economics, Working Papers, No 1461. 25 p. Retrieved from https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2023/wp_tse_1461.pdf

European Commission (2023). Knowledge service. Centre on Composite Indicators and Scoreboards. Composite Indicators: 10-step-guide. Retrieved from https://knowledge4policy.ec.europa.eu/search_en?search_api_fulltext=10-step-guide&f[0]=knowledge_service:Composite+Indicators

Lafuente, E.; Ács, Z. J.; Szerb, L. (2022). A composite indicator analysis for optimizing entrepreneurial ecosystems. Research Policy, 51(9), 104379. DOI: 10.1016/j.respol.2021.104379. Retrieved from https://www.sciencedirect.com/science/article/pii/S004873332100175X?via%3Dihub

Narayanan, E; Binti Ismail, WR; Bin Mustafa, Z. (2022). A data-envelopment analysis-based systematic review of the literature on innovation performance. Heliyon, 8(12). DOI: 10.1016/j.heliyon.2022.e11925. Retrieved from https://www.sciencedirect.com/science/article/pii/S2405844022032133

Nardo, M.; Saisana, M.; Saltelli, A.; Tarantola, S.; Hoffmann, A.; Giovannini, E. (2008). Handbook on Constructing Composite Indicators: Methodology and User Guide. Paris (France): OECD publishing; JRC47008. 163 р. DOI: 10.1787/533411815016. Retrieved from https://unstats.un.org/unsd/EconStatKB/KnowledgebaseArticle10366.aspx

Panwar, A.; Olfati, M.; Pant, M.; Snasel, V. (2022). A Review on the 40 Years of Existence of Data Envelopment Analysis Models: Historic Development and Current Trends. Archives of Computational Methods in Engineering, 29, 5397–5426. DOI: 10.1007/s11831-022-09770-3. Retrieved from https://link.springer.com/content/pdf/10.1007/s11831-022-09770-3.pdf

Eurostat (2014). Towards a harmonised methodology for statistical indicators. Part 1: Indicator typologies and terminologies. Luxembourg: Publications Office of the European Union, 30 p. DOI: 10.2785/56118. Retrieved from https://ec.europa.eu/eurostat/documents/3859598/5937481/KS-GQ-14-011-EN.PDF.pdf/82855e3b-bb6e-498a-a177-07e7884e9bcb?t=1503937480000

Eurostat (2017). Towards a harmonised methodology for statistical indicators. Part 2: Communicating through indicators. Luxembourg: Publications Office of the European Union, 49 p. DOI: 10.2785/799718. Retrieved from https://ec.europa.eu/eurostat/documents/3859598/7862432/KS-GQ-17-001-EN-N.pdf/3a226be6-efe0-4668-b09f-3dcd20f8ff11

Eurostat (2017). Towards a harmonised methodology for statistical indicators. Part 3: Relevance of indicators for policy making. Luxembourg: Publications Office of the European Union, 48 p. DOI: 10.2785/53076. Retrieved from https://ec.europa.eu/eurostat/documents/3859598/8071770/KS-GQ-17-007-EN-N.pdf/7d34c904-2d07-4e71-bd6f-8fe9ee373b60?t=1498555311000

Zagoruiko I., Petkova L. (2022). Model of world technological and economic efficiency frontiers. Journal of International Studies, 15(2), 174–198. DOI: 10.14254/2071-8330.2022/15-2/12. Retrieved from https://www.jois.eu/?768,en_model-of-world-technological-and-economic-efficiency-frontiers

Derevianko I. P. (2021). Asymmetry of power in international relations. Political problems of international systems and global development, 4, 87 – 94. DOI: 10.31558/2519-2949.2021.4.12. Retrieved from https://er.nau.edu.ua/handle/NAU/43221 (in Ukr.)

Yegorov I. (2022). Complex indicators in socio-economic research: advantages and disadvantages. University Scientific Notes, 1-2 (85-86), 195 – 205. DOI: 10.37491/UNZ.85-86.16. Retrieved from https://unz.univer.km.ua/article/view/85-86_195-205/pdf (in Ukr.)

Zagoruiko, I.O.; Petkova, L.O. (2021). DEA method as a tool for comparative analysis of the efficiency of national economies. Economic Bulletin of Cherkasy State Technological University, 62, 81–92. DOI: 10.24025/2306-4420.62.2021.242067. Retrieved from http://ven.chdtu.edu.ua/article/view/242067 (in Ukr.)

Zaiets, O. І. (2020). Global Dimensions of Competitive Force of International Integration Groupings. Qualifying scientific work as a manuscript. The thesis for a Doctorate Degree in Economics Sciences, specialty 08.00.02 «World economy and International Economic Relations». Kyiv: Taras Shevchenko National University of Kyiv, 443 р. Retrieved from https://dspace.uzhnu.edu.ua/jspui/bitstream/lib/53116/1/ dis_Zayats%D0%9E.%D0%86..pdf (in Ukr.)

Melnykov, S. (2019). The impact of asymmetry on market equilibrium. Odesa: Odesa National University. 104 р. Retrieved from https://www.researchgate.net/publication/331960196_ The_impact_of_asymmetry_on_market_equilibrium (in Ukr.)

Tereshchenko, Т.; Khytra, О. (2022). Asymmetry of Synergism Effects in Foreign Economic Activity. University Scientific Notes, 5-6 (89-90), 71–89. DOI: 10.37491/UNZ.89-90.7. Retrieved from https://unz.univer.km.ua/article/download/89-90_71-89/345 (in Ukr.)