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A COUNTRY COMPETITIVENESS ANALYSIS. ADL-MODEL INVOLVED.
Abstract
The article analyzes how the main factors influence the competitiveness of the economy. In constructing the model, three assumptions are introduced: a) there is a prehistory of the process, i.e. the variables that evaluate the competitiveness of the economy at the time t, also affect the values of previous periods; b) there is a mutual influence (interdependence) between the variables that evaluate the competitiveness of the economy; c) the variables that evaluate the competitiveness of the economy are influenced by internal and external factors. The national economy competitiveness model is a system of four interconnected econometric equations. The article selects the following endogenous variables that evaluate the competitiveness of the national economy: the volume of GDP per capita; the volume of industrial production; the volume of exports by national companies; the index of human development. The article describes the method of finding the coefficients of interconnected econometric equations.
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