The Construction Market Monopolization: Identification of the Threats to the Economic Security of Ukraine
Olha Pavelko1, Inna Lazaryshyna2, Olena Doroshenko3, Yulia Vashai4, Oksana Zinkevych5
1O.V. Pavelko, Ph.D. in Economics, Associated Professor, Accounting and Audit Department; National University of Water and Environmental Engineering, Rivne, Ukraine.
2Lazaryshyna, Doctor of Economic Sciences, Professor, Head of the Department of Statistics and Economic Analysis, National University of Life and Environmental Sciences of Ukraine.
3O.O. Doroshenko, Ph.D. in Economics, Associated Professor, Accounting and Audit Department; National University of Water and Environmental Engineering, Rivne, Ukraine.
4Yu.V. Vashai, Ph.D. in Economics, Associated Professor, Economic theory Department; National University of Water and Environmental Engineering, Rivne, Ukraine.
5O.V. Zinkevych, Ph.D. in Economics, Associated Professor, Accounting and Audit Department; National University of Water and Environmental Engineering, Rivne, Ukraine.
Manuscript received on January 02, 2020. | Revised Manuscript received on January 15, 2020. | Manuscript published on January 30, 2020. | PP: 56-66 | Volume-8 Issue-5, January 2020. | Retrieval Number: E5634018520/2020©BEIESP | DOI: 10.35940/ijrte.E5634.018520
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The degree of the construction market monopolization of Ukraine is assesed. Threats to the economic security of the state are identified, considering that monopolization causes significant public losses related to the establishment of monopoly prices, the slowdown in scientific and technological progress, the irrational allocation of resources. According to data on the net income of enterprises in the construction industry of Ukraine, the authors calculated Market concentration ratio, Herfindahl-Hirschman index, Dispersion of market shares, Coefficient of variation, Gini index, Entropy of market shares, that indicate a low level of the construction industry monopolization in Ukraine. Defined indicators allowed to form a matrix, which characterize the level of market concentration and its dynamics. According to the values of the variation index and the Gini index, the market studied belongs to highly monopolized, and due to the tendency of the Gini index to increase, it falls into the “red zone”. This means the emergence of threats to national economic security associated with a decrease in GDP, increased income differentiation, reduced state budget revenues, and the like and indicates the need for macroeconomic measures that would restrain the development of monopoly phenomena in the construction market. This approach to identifying economic security threats resulting from market monopolization will allow the state to respond to negative trends in a timely manner, counteracting the threatening factors.
Keywords: Construction, Competition, Concentration Level, Economic Security, Monopolization.
Scope of the Article: Construction Economics.