Government Policy to Promote Economic Competitiveness

Abstract

This article analyzes the conceptual and methodological foundations of state policy aimed at stimulating economic competitiveness. It substantiates the role of state policy in the context of globalization as a determinant of the world economy’s development. The significance of state policy in the progressive development of the national economy is identified. The main factors driving the development of the world economy under current conditions are determined. It is established that the dynamics of economic systems’ progress are based on the formation of systemic factors determined by the globalization dimension. It is found that the development of the global economy in the 21st century takes place against the backdrop of a whole range of risks and previously unknown global aspects that influence national economies.

It has been demonstrated that the dynamic and progressive development of the national economy is impossible without the implementation of a balanced policy to stimulate competitiveness. It has been determined that providing the necessary impetus to economic dynamics must be based on the balanced utilization of the domestic entrepreneurial and market potential of the national economy and active economic policy.

Government regulators are tasked with maintaining macroeconomic balance, identifying priority activities and economic sectors, limiting the scale of unprofitable industries, ensuring favorable conditions for attracting investment, stimulating technical and technological modernization, fostering the development of a reliable institutional environment within the framework of sustainable development, supporting and implementing cutting-edge technologies, and implementing comprehensive state policies aimed at countering destructive trends.

It has been demonstrated that the integration of approaches to boosting competitiveness aims to create conditions for economic growth based on green technologies, grounded in aligning climate goals with competition, industrial, and trade policies, as well as implementing a flexible system to support companies in investing in clean technologies. This involves promoting clean technologies and circular models, and transforming decarbonization into a competitive advantage for the industrial sector.

It has been established that a balanced and well-founded state policy is designed to facilitate a profound transformation of the national economy based on high-tech development, which is one of the fundamental factors for embarking on a path of sustainable growth. It has been demonstrated that the dynamic development of the national economy’s competitiveness allows for additional benefits from the integration of all development factors.