THREATS TO THE COMPETITION OF UKRAINIAN CONSTRUCTION ENTERPRISES (2020-2021)Journal: University Economic Bulletin (Vol.0, No. 52)
Publication Date: 2022-05-13
Authors : Galina Studinska;
Page : 129-135
Keywords : competition; competitiveness; construction; risks; non-market competition; eco-raiding; eco-terrorism;
The study of risks of reducing the competitiveness of construction companies in 2020-2021 through the use of non-market methods of competition, including eco-raiding, requires an in-depth look at their impact on economic efficiency of the entity, which determines the relevance and novelty of this study. The object of the research is non-market methods of competition of construction enterprises in modern conditions. The subject of this study are eco-raiding and eco-terrorism as risk factors for reducing the competitiveness of construction enterprises. The purpose of this work is to substantiate the need to strengthen the role of state control in the process of managing the construction industry in conditions of non-market competition. The practical significance of the results obtained is to determine recommendations for improving the quality of management of the construction industry through increased control over the pre-project processes of housing construction. To achieve this goal were used: system-parametric approach – to the scientific knowledge of modern non-market methods of competition in the construction market of Ukraine, which made it possible to reveal their negative role in strengthening the processes of monopolization; systematic analysis of the causes of illegal construction, which contributed to the formation of recommendations for solving this problem; managerial approach – to the role of the state in terms of strengthening the control function in the construction market. Conclusions. The construction industry is an external identifier of the «health» of the national economy. Unfinished objects reduce the investment attractiveness of the industry for domestic and foreign investors, show a negative overall situation in the domestic market. A significant reason for stopping the construction and bankruptcy of construction companies is eco-raiding - speculation on environmental issues, which blocks the activities of a construction company in order to taking possession of its property. The reasons for eco-raiding lie in the corruption of government agencies and their links with criminals. To overcome eco-raiding in the country it is necessary to form an effective institutional environment, certain legislation, an independent judiciary, which together will strengthen the system of control by public authorities and local governments. The construction industry will play a particularly important role in the post-war period, when domestic industrial and residential infrastructure will need large-scale reincarnation. European society provides for the functioning of economic mechanisms exclusively in market conditions, which should exclude the use of non-market methods of competition not only in the construction sector but also in the domestic economy as a whole.
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