The Transnationalisation Impact on the Development of the National Economy of Ukraine

Abstract

The purpose of this paper is to explore and analyze the impact and importance of transnationalisation for national economy of Ukraine as economic mechanism which influences on formation of new priorities of public reconstruction, goals and vectors of foreign economic policy, features and conditions of participation of Ukraine in the international division of labor.The integrative framework for this study represents using of the following methods: monographic, analysis and synthesis, mathematical programming and modeling, UNCTAD methodologies for assessment the TNC economic activity, World Bank methodologies for assessment the attractiveness of the country for business activity (Doing Business) and for assessment the countries competitiveness with Global Competitiveness, system and process approaches. The role of transnationalisation in development of national economy of Ukraine is significant. It concerns formation of net inflow of investments into economy, and respectively growth of its GDP and welfare of the population. At the same time it should be noted that transnationalisation impact on the national economy can be characterized by both positive and negative features. The study was limited with time frame from 1980 till 2017, contextual situation and country in order to maintain these variables relatively constant, with proposals for extending studies to other business situations and contexts. The paper provides evidence for the impact of transnationalisation in development of national economy of Ukraine and analysis of Ukraine’s international competitive position, which should lead to increased recognition for government and organizations of the importance of these influences on business practice and social and economic state of Ukraine. A social implication is that government and organizations should build a level of awareness of the impact of transnationalisation in development of national economy of Ukraine and the quality of life. Results of the conducted research allow determining the role of transnationalisation in development of national economy of Ukraine. The specific principles of relationship between TNC and national economy were grounded in the paper for their optimal interaction. A generalized research framework is proposed to aid future studies of transnationalisation.