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The Factors of Interaction Between Global Trade Openness and Value Chains in Shaping the International Competitiveness of Countries
Abdula O. Y., Sytnyk L. S., Taranych О. V.

Abdula, Oleg Yu., Sytnyk, Liudmyla S., and Taranych, Оksana V. (2025) “The Factors of Interaction Between Global Trade Openness and Value Chains in Shaping the International Competitiveness of Countries.” Business Inform 9:26–34.
https://doi.org/10.32983/2222-4459-2025-9-26-34

Section: International Economic Relations

Article is written in Ukrainian
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UDC 330.133.138:339.7

Abstract:
This study examines the factors of interaction between global trade openness and value chains and determines their impact on shaping the international competitiveness of countries. An analysis of the dynamics of the global economic openness index and individual countries was conducted, showing that active participation in world trade expands access to goods and services markets, which contributes to the growth of national production volumes and increased income. The combination of various elements of protectionism and trade liberalization, as well as the deepening of a country’s specialization in global value chains, serves as a conditional criterion for the development of the domestic market, which should gradually foster competition at the regional level and later in the global market. A comprehensive protectionist policy for the domestic market should be temporary, lasting several years, until stable logistics channels are established within the country and expanded to external markets; it should be maintained for strategically important sectors with potentially low international competitiveness, such as agriculture and forestry. Accordingly, developing countries should shape their foreign policy based on openness, engagement in international value chains, and gradual progression from importing final consumer products back toward their production and export. A comparative analysis has been carried out ranking countries according to their international competitiveness indices as determined by the World Economic Forum and the Institute for Management Development (IMD-Lausanne). Indicators of economic openness and international competitiveness of countries reflect the relationship between productivity and the wealth generated in national economies, as well as the profits earned by businesses, along with the attraction and utilization of investments. All the identified factors of productivity, profit, and investment serve as engines of competitive growth for any national economy, ensuring sustainable economic development. An important element in enhancing the international competitiveness of countries is their involvement in and gradual saturation of value creation chains, to maintain the inflow and accumulation of value, thereby increasing the welfare of the population and further boosting the productivity of national economies.

Keywords: global value chains, openness of world trade, world economy, international economic relations, international competitiveness of countries, international investments.

Fig.: 6. Tabl.: 2. Bibl.: 12.

Abdula Oleg Yu. – Postgraduate Student, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: [email protected]
Sytnyk Liudmyla S. – Doctor of Sciences (Economics), Professor, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: [email protected]
Taranych Оksana V. – Candidate of Sciences (Economics), Associate Professor, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: [email protected]

List of references in article

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