Analysis impact of the structural competition preconditions for ensuring economic security of the machine building complex

Authors:
M. Bublyk1, V. Koval2, O. Redkva3
1. Lviv Polytechnic National University (Lviv, Ukraine)
2. Odessa Institute of Trade and Economics, Kyiv National University of Trade and Economics (Odessa, Ukraine)
3. Ternopil National Technical University named after Ivan Puliui (Ternopil, Ukraine)
Pages:
229 - 240
Language:
English
Cite as:


Annotation

This article deals with the nature and definition of economic security of business entities in the market of the machine building complex. Prerequisites and threats to restrict competition in the machine building market have been revealed. The authors argue that the poor quality of the regulatory framework for the formation of conditions for a competitive environment can increase the likelihood of rising economic security risks with a negative impact on unfriendly competition in the context of insufficient legal protection of the interests of business entities or oligopolistic coordination of market participants, mainly through their anticompetitive concerted actions. Dualistic growth of competition development threats due to state failures and growth of the economic security threats due to the formation of markets with non-competitive structure have been determined.
Therefore, in our opinion, the paramount sectoral preconditions for reducing the economic security of machine building markets during the transformation period of the competitive environment are: a high share of disposal of commodities in the markets with dominance marks and risks of further monopolization of individual commodity markets; a weak institutional basis for supporting the industry at the stages of its life cycle to reduce market capacity; an increasing number of cases of unfair competition with provoking a decrease in the level of investment attractiveness and innovative activity of business entities.
Analytical part of the article is devoted to the study of management and regulation of economic security of the machine-building products market, combining the approach to balancing regulatory impact and economic methods of competition development, acting as a process of ensuring and enhancing the economic security of the industry and the state in the long term. The preconditions of the impact of competition on the economic security of the machine building markets, the consequences and tasks to increase it on the part of state administration bodies have been revealed.
The evaluation of institutional factors of the economic security of the market environment and the sectoral measurement of the competitive environment in the context of their impact on the level of economic security in the machine-building complex has been carried out. This evaluation reveals a market component of the economic security at the market of the machine-building complex, that is understood as competitive environment in the market and institutional capacity of the system (according to the resolution of the government) supports the implementation mechanisms of equilibrium and combating specific threats. It is assumed that the strategy of national security of Ukraine in the economic field is focused on short-term implementation of the announced economic reforms, however apart from the existing threats, emerge new threats that reduce the competitiveness of the national economy that requires economic policy in the sphere of economic security of the machine building complex that negate the negative impact of these threats.
Based on the analysis of the structural preconditions of the competition in the machine-building market, it was proved that oligopoly is the main market structure of machine building complex, which, on the one hand, is characterized by dominance marks and anticompetitive coordinated actions at the market. The directions of forming the national competition policy, the realization of which will promote enhancing of the economic security of the machine-building complex have been suggested.
 

Keywords
competition, economic security, machine building, national competition policy, oligopoly


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