DETERMINING STRATEGIES FOR INCREASING UKRAINE'S GROSS VALUE ADDED WITH THE HELP OF SOFTCOMPUTING

  • G. Duginets Kyiv National University of Trade and Economy
Keywords: global cost chains, production transformation, gross value added, types of economic activity, growth scenarios, Hopfield neural networks

Abstract

The article presents the results of determining strategies for increasing gross value added of Ukraine's economy by means of Softcomputing. In the course of the research, it was determined that the solution of the existing problems in the Ukrainian economy depends on creating competitive conditions for the development of the domestic market as a basis for high-tech modernization of industrial enterprises and building on this basis of valuecreating chains. The use of the Gross Value Added (GVA) indicator for the inclusion of Ukraine in global value chains is substantiated. The study substantiates the urgent need to refine the strategies of socio-economic development in order to recreate and correct such a structure of economic activities that can gradually offset the existing differentiation and asymmetry. To this end, an algorithm based on the principles of SoftComputing is proposed. Through the use of the economic mathematical method and Hopfield neural networks, four strategies for increasing GVA growth in Ukraine have been proposed. It is concluded that strategy 3 is the most effective of the proposed. If it is to be implemented, during the first 4 years, "internal potential energy" will be accumulated in the country's economic system, that is, a stable foundation for further sharp economic growth will be created. Moreover, dynamic strategic planning for 5 years shows a 40% better result than stable strategic planning and 61% better than the current development strategy.

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Published
2018-02-27
How to Cite
Duginets, G. (2018). DETERMINING STRATEGIES FOR INCREASING UKRAINE’S GROSS VALUE ADDED WITH THE HELP OF SOFTCOMPUTING. Economic Scope, (130), 50-67. Retrieved from http://prostir.pdaba.dp.ua/index.php/journal/article/view/186
Section
PROBLEMS OF NATIONAL AND REGIONAL ECONOMY