The Case of the Aviation Industry Development under the Conditions of an Open Economy: A Theoretical Context
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Yurii Hrinchenko: Odesa Mechnikov National University, Ukraine
Journal of Applied Management and Investments, 2020, vol. 9, issue 1, 28-41
The industry development requires a certain balance between market power conditions to secure investments returns and competition conditions to secure efficient allocation and use of resources. The deregulation and globalization brought great growth prospects for the aviation industry, while the forth industrial revolution requires new approaches to the industry relation patterns. The state regulation focus more on infrastructure support and control of the competition situation, while industry agents are rebuilding the network of relations to adopt new informational technologies to the strategies of the sustainable development. Open economy conditions create a global market for the aviation industry but also generate risks. The competition appears not only between industry agents, but also among countries and regions, as the aviation industry generate direct, indirect and causal effects on economic development. The sustainable development of the industry will occur as the state focus on customer-value maximization conditions, while the industry agents adopt cooperation strategies to use resources more efficiently. The further research may imply a development of economic and mathematic model of effective choice of aviation industry's economic agents under conditions of efficient distribution of expenses through transfer pricing and intra - industry integration.
Keywords: economic growth; open economy; industry development; efficiency; aviation industry; strategy (search for similar items in EconPapers)
JEL-codes: F43 O11 L93 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ods:journl:v:9:y:2020:i:1:p:28-41
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