Worldwide Governance Indicators as a reflection of the state of economic security of entrepreneurial activity in Ukraine
The paper presents how Worldwide Governance Indicators can be used to analyze the state of economic security of entrepreneurial activity in Ukraine. «The creation of conditions for the safe development of entrepreneurial activity is a component of ensuring national security, since, if you understand: the number of representatives of entrepreneurship, their contribution to the GDP of the country and to the development of innovations, to the creation of jobs, etc., it becomes clear that the economic security of entrepreneurial activity is not only ensuring the prosperity of entrepreneurs and development of the country’s economy, as well as strengthening and achieving political stability within the country.»[1]. Conditions, created in the country to ensure the economic security of entrepreneurial activity can be studied according to various criteria and indicators. In this field of study «Worldwide Governance Indicators» helps to evaluate the results of government activity that is aimed at creating a business environment that helps strengthen the economic security of entrepreneurial activity in the country.
For the research of economic security of entrepreneurial activity in Ukraine were selected such indicators as: (X2) Political stability and absence of violence / terrorism, (X3) Government effectiveness, (X4) Quality of regulatory activity, (X5) Control of corruption. These indicators are presented in standardized values ranging from -2.5 to 2.5, with a lower value representing a worse value. For better understanding of relationship between indicators in Figure 1 and the state of economic security of entrepreneurial activity we will use one more indicator – (X1) Quantity of active firms in Ukraine (the data presented in standardized values ranging from -2.5 to 2.5). Figure 1 describes the results of research.
Based on the data in the figure, you can see the general relationship in the changes in the selected indicators. The study demonstrates that the number of active enterprises is an indicator of the state of economic security and entrepreneurial security in the country. The correlation calculation (Figure 2) complements presented on Fig.1 data
An increase in the number of active firms is associated with an improvement in the quality of regulatory activities and there is also a positive relationship with government efficiency. The indicator of control of corruption and the indicator of the number of active firms demonstrates that weakness of corruption control decreases the number of active firms. Also, a higher level of corruption is associated with a lower quality of regulatory activities. The study demonstrates that the selected indicators make it possible to get an idea of the state of economic security of business activity in the country. And, using the example of Ukraine, we can say that the effectiveness of corruption management and regulatory activities are key problem points in organizing the economic security of business activity in the country.
References
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- Daniel Kaufmann and Aart Kraay (2023). Worldwide Governance Indicators, 2023 Update (www.govindicators.org), Accessed on 10/19/2023.
- State Statistics Service of Ukraine. Number of active enterprises. URL: https://www.ukrstat.gov.ua/