THE IMPACT OF THE EU'S ECONOMIC OPENNESS ON THE DEVELOPMENT OF THE GLOBAL ECONOMY

Abstract

The article examines the relationship between the openness of the economies of the European Union countries and the development of the global economy. Both negative and positive consequences of the openness of countries' economies in the development of the global economy have been revealed. The scientific approaches of scientists regarding the interpretation of the essence of the concept of "openness of the economy" were considered and analyzed. The main factors affecting the degree of openness of the economy are systematized, including the volume of the domestic market, the structure of the country's production, the availability and level of natural resources, and the general level of the country's economic development. To study the openness of the economies of the EU countries, the dynamics of such indicators as the ratio of trade to the GDP of the Eurozone were analyzed; volume of direct foreign investment; global innovation index; the population and unemployment rate of the Eurozone. The coefficient of determination was calculated to detect changes in the level of unemployment in the Eurozone. The analysis of the indicators made it possible to reveal that countries that mainly export their products and services demonstrate a higher level of openness, which leads to an increase in the volume of international trade, contributes to the attraction of a significant amount of foreign investments and the development of the production of goods and services. The analysis of the global innovation index made it possible to identify the national innovation sphere of EU countries and determine the position of the country in terms of the level of innovative development on a global scale. The trade agreements concluded by the EU countries with other countries and regions of the world are studied as a factor of the openness of the economy, which contributes to the global economic expansion of the horizons of international trade and the active integration of countries into the global space. It is substantiated that the level of quality of life affects the growth of the population, taking into account migration and the level of unemployment, respectively, it affects the openness of the economies of the EU countries, taking into account the provision of access to a larger reserve of human resources for the development and implementation of innovations, and the development of new technologies. Proposed recommendations for increasing the level of openness of EU economies for further global economic development.