Economics & Education (Aug 2022)
THE SMART SPECIALIZATION APPROACH THROUGH THE PRISM OF THE KEY PROVISIONS OF THE THEORY OF FREE TRADE: CONCLUSIONS FOR UKRAINE
Abstract
The purpose of the article is to analyze the approach of smart specialization through the prism of key provisions of D. Ricardo's theory of comparative advantage, to identify its limitations for industrial weak countries and on this basis to identify key guidelines for the development of smart specialization strategies in Ukraine in view of the challenges of the postwar era. Materials and methods. The study is based on theoretical works of Ukrainian and foreign scientists on the problems of implementing the approach of smart-specialization in the practice of regional development. The work was carried out using the methods of systematization and generalization, analysis and synthesis, comparative analysis, and systematic approach. Results. The theoretical basis of the approach of "smart specialization" is revealed, the synthesis of economic schools, theories and concepts underlying this approach is defined. The insufficient theoretical development of its main provisions, which is negatively reflected in practice, especially in less economically developed countries and regions, was substantiated. It is concluded that the reasons for this lie, in particular, in the limitations of the Ricardian theory, on the provisions of which the smart specialization approach is based. It is emphasized that the Ricardian theory does not take into account the technological factor, which considers the technological base of the country as a constant, which does not give industrial weak countries an opportunity to change the raw material nature of their economy to a fundamentally new - innovative one. The historical retrospective traces the strategy of development of economically powerful countries in achieving their international competitive advantages, which is diametrically opposed to Ricardian theory. On the basis of this the key guidelines for the development of strategies of reasonable specialization in Ukraine in the post-war period of its reconstruction in order to prevent the preservation of the raw material nature of the national economy and its secondary position in the world are outlined. Conclusion. It is proved that post-war reconstruction of Ukraine should be aimed at radical changes in the structure of the economy, the transition from the agrarian-raw type to industrial-innovative type on the basis of creating a modern high-tech industry in the conditions of unfolding in the world of a new technological revolution.
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