Baltic Journal of Economic Studies (Nov 2016)
RESEARCH METHODOLOGY FUNDAMENTALS OF THE UKRAINIAN PROCESSING AND MANUFACTURING ENTERPRISES ECONOMIC POTENTIAL
Abstract
The purpose of the paper is to find the most appropriate application ways for simulating of the business activities of the manufacturing and processing agriculture enterprises dealing in the corruptive Ukrainian environment and to overcome the fundamental methodology contradictions to be able to perform more accurate results of the economic potential assessment despite the sophisticated defects inherent in current industry sector. Methodology includes publication research, interviews and practical comparison of the published statistic data and real production volume, returns and other indicators to be able to estimate actual potential of the target enterprises. The paper comes through the classical analytical methods showing their application pros and contras in highly corruptive environment with the strong trend of data falsification. Results of the survey show the basic economic methods applicable for the research activity of processing and manufacturing enterprises operating in the field of agriculture. The authors’ experience picks up the problem of the urgent need of new methodology among vast abstractive researching executed by the majority of the scientists as they have some contradictions when we apply them for the real industry segment or even an enterprise. Corruption affecting the general statistic data misrepresents the facts therefore current (classic methods) are not able to show real economic trends in the industrial segment. So the authors persist on the significance of the corruption distortion considering e.g. to identify the actual macro- and microeconomic indicators, indexes and ratios we involve the stage researching system of multidimensional comparative analysis to rank received rating and find appropriate position for enterprise and as we cannot ignore a constantly growing shadow sector of Ukrainian economy we perform economic potential assessment of the target enterprise with the identification of the shadow sector with the help of the offered in the paper formula. This set of the mentioned above tools allows us to estimate the influence of the inner and outer environment influence into the researchable object and show the actual phenomena trends. Another benefits of the offered ranking system is involving of several scientific approaches (every approach obtains its own pros and contras) so if they deal together we increase our accuracy. Practical implications. Ukraine has been being independent over a quarter of a century and unfortunately corruption has penetrated into each and every sphere of social and economic life including agriculture and due to the a great deal of fabricated data leading domestic scientist to study the macro- microeconomic state and processes mostly from the abstractive point of view. Therefore the methodology clarification and algorithm of the analytical method application estimate the target enterprises’ economic potential more accurate. Value/originality. Considering the identification of the shadow industry sector (the volume Ukrainian scientists cannot ignore) we may avoid dramatic mistakes in researches defining macroeconomic indexes, other economic and financial options.
