Quantitative Assessment of the Industrial Composition in the Country’s Regions

Abstract

To this date, insufficient number of reasoned methods for assessing the industrial composition in the country or in the region in an integrated and quantitative manner is on offer. The existing proposals are basically intended for explaining the drivers of change in the industrial composition as well as the reasons thereof. Following this analysis, the most export-oriented industries are determined. Hence, the focus is not on assessing the industrial composition of a country or a region itself in a quantitative manner, but rather the impact of the changes thereof on economic indicators, i.e. derivative measures of industrial composition. The industrial composition of a country or a region can be described through indicators that reflect three key aspects, i.e. the variety of active economic entities by their number, size and types of economic activities. The proposed methodology is suitable for assessing the industrial composition of a country’s region.

Assessment of Economic Convergence Among Countries in the European Union

“…The ratio of the intensity of economic development of a country is calculated as follows (Ginevičius et al, 2018):…”

“…Continuity of the development is important in the sense that it influences the social and environmental situation of the country. This value is determined as the ratio of the length of the ideal trajectory of economic development over the reference period T to the length of the actual trajectory (Ginevičius et al, 2018).…”

“…− . The length of the actual trajectory of the country's economic development during the period under consideration is determined as follows (Ginevičius et al, 2018):…”

“…Enlargement is a process of changes in successive events with causal links. It can be reflected in indicators such as the intensity, consistency and aggregate index of development over the period under consideration -dynamics (Ginevičius et al, 2018). Setting out how the economic development indicators of the two groups of countries developed over the period from 2004 to 2019 will help to answer the question of how the economic development of the second group of countries was affected by their presence in the EU.…”

“…We will get a full picture if the economic development of the countries is examined both taking into account and regardless of the context of other countries. This is necessary because the higher the level of economic development in the country, the more difficult it is to sustain increasing growth rates (Ginevičius et al, 2018). In this case, the chart for analysing the impact of the EU on the economic development of its members will look like this (Figure 1).…”