Economic growth and convergence in poor countries - Dissertation Example

d stimulation of the sales by means of advertising, personal sales, public relations and various material incentives addressed to consumers, agents and sellers; provision of price conditions, that include planning of the systems and price levels for provided goods, defining technology of price, credit, discount usage; satisfaction of technical and social norms of the region where the products are sold, which means the duty to provide appropriate security of product consumption and environment protection, accordance to moral norms, appropriate level of consumer value of the product; managing economic growth activity as a system, i.e. planning, carrying out and control of economic growth program and individual duties of each participant of production process; evaluation of the risks and profits, efficiency of economic growth decisions.

The given paper will provide the analysis of the problems, which developing countries face on the way to economic growth and will prove that in order to stimulate economy, it is necessary to provide innovations in the field of marketing and management. Research analysis and limitations The research process should cover a number of stages. First and foremost, the detailed review of literature is performed, to identify the gaps in research and develop a clearer picture of contemporary management practices in the developing countries.

The development of the research question was followed by the analysis of the available literature and potential research objects. Researched countries made the whole research relevant, efficient, and justified. The choice of Ukraine as an example was followed by the development of the research instrument and its analysis. The most important research findings include: The prevailing majority of developing. During the process of market-oriented reformatting a new model of economic development was shaped in many developing countries.

It is characterized by high degree of economical openness towards foreign commerce. Many developing countries face the following problems:• Limited domestic demand, caused by total pauperization of the population and large-scale humiliation of pre-reforming savings. It leads to narrowness of domestic market, which produces a small volume of solvent demand, regardless of relatively big population. Under such circumstances export becomes a significant factor of economic growth, which is abnormal for economical security of the state, and affects the perspectives of the state influence on the processes of world economy.

Market narrowness does not produce appropriate stimulus for investment in the state from domestic and foreign investors.• Unfavorable nature of investment climate, caused by incompleteness of the market-addresses institutional reforms, high level of interference of state institutions and officials into economical activity, high rates of corruption, incompleteness of market infrastructure. It produces the narrowness of domestic market and detracts the capital flows from the country.For example, the crisis of Ukrainian economy was caused by insufficiently considered monetary policy of the government and influence of the structures that are interested in creation of economy of non-payment.

Government is planning to remove these structures.