Abstract
Until now, many international organizations and scholars have set different standards and indicators to compare and assess country-specific economy. But most of these are not suitable for the real situation of a given country because these do not consider various internal and external factors affecting the given economy. This chapter addresses methodological issues on the assessment of economic strength of a given country. To this end, the authors investigate previous studies regarding the assessment of the economy of a given country; conceptualize the economic strength of a country as a complex concept, not simply the magnitude of GDP, GNP, and the like; set a new system of indicators for assessing the economic strength; and, on this basis, produce a methodology for the synthetic assessment of economic strength of a country. The findings are that (a) economic strength of a country must be defined in view of its economic capability which any country can exhibit even under any unfavorable external environment, (b) the indicators for this assessment include a variety of indicators in line with its essence, and (c) the assessment methodology must be a multifaceted one. These findings may help, on the one hand, in assessing the realities of a given economy while taking economic and technical measures to help policymakers strengthen it. On the other hand, these will help scholars and organizations compare and assess country-specific economies from a new perspective.
References
Ahmadi, M., Jafarzadeh-Ghoushchi, S., Taghizadeh, R., et al. (2019). Presentation of a new hybrid approach for forecasting economic growth using artificial intelligence approaches. Neural Computing and Applications, 31(12), 8661–8680. https://doi.org/10.1007/s00521-019-04417-0
Atanassova, V., Doukovska, L., Kacprzyk, A., Sotirova, E., Radeva, I., & Vassilev, P. (2018). InterCriteria analysis of the global competitiveness reports: From efficiency- to innovation-driven economies. Journal of multiple-valued logic and soft computing, 31, 469–494.
Brodowska-Szewczuk, J. (2019). Determinants of the development of enterprises’ innovativeness in the aspect of competitiveness of the economy. Entrepreneurship and Sustainability Issues, 7(2), 1279–1295. https://doi.org/10.9770/jesi.2019.7.2(33)
Cooper, R. N. (1968). The economics of interdependence: Economic policy in the Atlantic community. McGraw-Hill.
Dukic, B., Dukic, S., & Dugandzic, S. (2018). Knowledge Management in the Function of ensuring competitiveness of Slavonian economy. In A. M. Tonkovic & B. Crnkovic (Eds.), Proceedings of the 7th international scientific symposium economy of the eastern Croatia–vision and growth., , 24–26 May 2018 (pp. 94–102).
Dutta, S. (Ed.). (2011). The global innovation index 2011. INSEAD, http://www.globalinnovationindex.org/gii/
Giovannini, E. (2008). Understanding economic statistics, An OECD perspective –ISBN 978-92-64-03312-2 –@ OECD 2008 pp. 13, 49.
Godfrey, P. C. (2008). What is economic self-reliance? ESR Review. Spring 2008, 10(1), 4–7.
Gorokhova, M. Y. (2018). Resource potential of the knowledge economy. Upravlenets, 9(3), 20–25. https://doi.org/10.29141/2073-1019-2018-9-3-4
Hadad, S. (2018). The geographic distribution of knowledge economy (KE) within the European Union (EU). Management & Marketing: Challenges for the Knowledge Society, 13(3), 1089–1107. https://doi.org/10.2478/mmcks-2018-0025
Hu, W., Hu, Z., & Yuejing, G. (2019). Review of geo-setting research in China. Progress in Geography, 38(4), 477–488. (in Chinese).
Jolliffe, I. (2002). Principal component analysis. Wiley.
Kappel, R. (2010). On the economics of regional powers: Comparing China, India, Brazil, and South Africa. GIGA Working Papers, No. 145.
Lomachynska, I., & Podgorna, I. (2018). Innovation potential: Impact on the National Economy’s competitiveness of the EU developed countries. Baltic Journal of Economic Studies, 4(1), 262–270. https://doi.org/10.30525/2256-0742/2018-4-1-262-270
Luttwak, E. N. (1990). From geopolitics to geo-economics: Logic of conflict, grammar of commerce. The National Interest, 20, 17–23.
Mallard, G. (2012). Modelling cognitively bounded rationality: An evaluative taxonomy. Journal of Economic Surveys, 26, 674–704. https://doi.org/10.1111/j.1467-6419.2010.00673.x
Moffatt, M. (2019). Measuring the size of the economy: Using gross domestic product to determine economic strength and power. Thoughtco, February 22, 2019. https://www.thoughtco.com/measuring-the-size-of-the-economy-1146998
Morgenthau, H. J., & Thompson, K. W. (1997). Politics among nations: The struggle for power and peace (6th ed.). McGraw-Hill.
National Bureau of Statistics of China, National Data. Available at: http://www.stats.gov.cn/english/
Rim, G., Kim, G., Hwang, S., et al. (2019). Some problems in statistically assessing the level of knowledge economy. Journal of the Knowledge Economy, 10(3), 974–996. https://doi.org/10.1007/s13132-017-0510-0
Rim, G. N., Jang, S. N., An, C. J., et al. (2020). State economic strength and some methodological issues on its assessment. Social Indicators Research, 152(2), 607–636. https://doi.org/10.1007/s11205-020-02459-9
Rio, F. D., & Lores, F. X. (2017). Regulation and rent-seeking: The role of the distribution of political and economic power. Journal of Public Economic Theory, 19(5), 986–1008. https://doi.org/10.1111/jpet.12231
Rutherford, D. (2002). Dictionary of economics (2nd ed.). Taylor & Francis Publishing House.
Scott, B. R., & Lodge, G. C. (1985). US competitiveness in the world economy. Harvard Business School Press.
Taghizadech, R., & Ahmadi, M. (2019). Statistical and econometrical analysis of knowledge-based economy indicators affecting economic growth in Iran: The new evidence of principal component analysis – Tukey and ARDL bound test, Preprint: January 2019. https://doi.org/10.13140/RG.2.2.26515.02087.
Tisdell, C. (2013). Economic self-reliance and China’s development: Changing perspectives. International Journal of Development Issues, 12(3), 239–252. https://doi.org/10.1108/IJDI-03-2013-0029
World Bank . (2010). Development Economics, p. 7.
World Bank. (2012). KEI and KI Indexes (Knowledge Assessment Methodology 2012). http://info.worldbank.org/etools/kam2/KAM_page2.asp
World Economic Forum. (2019). The Global competitiveness report 2017–2018. Accessed 29 Nov 2019. Available at: https://www.alianciapas.sk/wp-content/uploads/2017/09/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf
World Intellectual Property Organization (WIPO). (2019). Global Innovation Index 2019, https://www.wipo.int/publications/en/details.jsp?id=4434
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive licence to Springer Nature Switzerland AG
About this entry
Cite this entry
Rim, GN., An, CJ. (2022). Economic Strength of a Country and Its Assessing Method. In: Baikady, R., Sajid, S., Przeperski, J., Nadesan, V., Islam, M.R., Gao, J. (eds) The Palgrave Handbook of Global Social Problems. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-68127-2_244-1
Download citation
DOI: https://doi.org/10.1007/978-3-030-68127-2_244-1
Received:
Accepted:
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-68127-2
Online ISBN: 978-3-030-68127-2
eBook Packages: Springer Reference Social SciencesReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences