International Journal of Computer Science & Network Security

International Journal of Computer Science & Network Security (국제컴퓨터통신보호논문지학회)
권호 표지
DOI QR코드

DOI QR Code

Modelling and Factor Analysis of Pricing Determinants in the State-Regulated Competitive Market: The Case of Ukrainian Flour Market

  • Dragan, Olena (Department of Labour Economics and Management, National University of Food Technologies) ;
  • Berher, Alina (Department of Marketing, National University of Food Technologies) ;
  • Plets, Ivan (Department of Finance, Vasyl Stefanyk Precarpathian National University) ;
  • Biloshkurska, Nataliia (Department of Marketing, Management and Business Management, Pavlo Tychyna Uman State Pedagogical University) ;
  • Lysenko, Nataliia (Uman Branch, Private Higher Educational Institution "European University") ;
  • Bovkun, Olha (Department of Marketing, Management and Business Management, Pavlo Tychyna Uman State Pedagogical University)
  • Received : 2021.07.05
  • Published : 2021.07.30
Download PDF
⟨ Previous Next ⟩

Abstract

The aim of the study is to implement a factor analysis of the determinants of pricing in a state-regulated competitive market using economic and mathematical modelling methods and to develop ways to improve the pricing environment of the market under study. The purpose of the work defines the main objectives: (i) to investigate the features of the competitive model of the Ukrainian flour market; (ii) to analyse the current price conjuncture of the flour market and the dynamics of the main determinants of pricing; (iii)to develop ways of improving the price situation on the flour market on the basis of the factor analysis on the results of economic and mathematical modelling. In order to ensure the reliability and validity of the research results, the following methods were applied: the logical-dialectical method of scientific knowledge in the study of the main theoretical aspects of flour market functioning, the method of logical generalisation and synthesis, comparison, factor analysis, correlation and regression analysis, the graphical method, etc. It has been shown that pricing in a state-regulated competitive market has its own characteristics. For example, in the flour market the price of goods cannot be influenced by producers (sellers) by any methods, therefore determinants of pricing by indirect influence have been taken into account. The five-factor power model of wheat flour price has been constructed. It was substantiated that the price of wheat flour in Ukraine is mostly influenced by consumer price index (0.92 %). The received complex model of wheat flour price may be used also for medium-term forecasting and working out the ways of price formation optimization in the flour market.

Keywords

References

  1. A. Henry, Q. Feng, and Y. Zheng, "How do export controls affect price transmission and volatility spillovers in the Ukrainian wheat and flour markets?," Food Policy, vol. 62, pp. 142-150, June 1997, doi: 10.1016/j.foodpol.2016.06.002.
  2. Antimonopoly Committee of Ukraine. (2002, March 5). Order No. 49-p, On approval of the Methodology for determining the monopoly (dominant) position of economic entities on the market (in Ukrainian). [Online]. Available: zakon.rada.gov.ua/laws/show/z0317-02/print.
  3. O. Nikishyna, "Criteria assessment and diagnostics of the Ukrainian flour market," (in Ukrainian), Food Industry Economics, vol. 3, pp. 60-67. Sept. 2011.
  4. State Statistics Service of Ukraine. (2021). Statistical Information [Online]. Available: http://www.ukrstat.gov.ua.
  5. C. S. Kim, C. Hallahan, G. Schaible, and G. Schluter, "Economic analysis of the changing structure of the U.S. flour milling industry," Agribusiness, vol. 17, no. 1, pp. 161-171, Jan. 2001, doi: 10.1002/1520-6297(200124)17:1%3C161::AID-AGR1008%3E3.0.CO;2-0.
  6. L. Mncube, "On market power and cartel detection: The South African flour cartel," Studies in Economics and Econometrics, vol. 37, no. 3, pp. 41-60, Dec. 2013, doi: 10.1080/10800379.2013.12097259.
  7. C. C. Ofonyelu, "Strategic capacity utilization and competition: An analysis of competitions in Nigerian flour industry," Issues in Business Management and Economics, vol. 2 (10), pp. 186-192, Oct. 2014, doi: 10.15739/IBME.2014.005.
  8. F. D. Wet, I. Liebenberg, "Food security, wheat production and policy in South Africa: Reflections on food sustainability and challenges for a market economy," The Journal for Transdisciplinary Research in Southern Africa, vol. 14, no. 1, a407, Jan. 2018, doi: 10.4102/td.v14i1.407.
  9. K. F. Binti, M. M. Mehedi, S. Md. Khaled, "Subsidy rationalisation for general purpose flour: Market and economics implications," The Journal of Asian Finance, Economics and Business, vol. 4, no. 2, pp. 25-36, May 2017, doi: 10.13106/jafeb.2017.vol4.no2.25.
  10. I. F. Balaniuk, D. I. Shelenko, M. V. Biloshkurskyi, I. M. Povorozniuk, and L. A. Slatvinska, "An integrated approach to the enterprises' business efficiency assessment," Management Theory and Studies for Rural Business and Infrastructure Development, vol. 42, no. 4, pp. 486-495, Dec. 2020, doi: 10.15544/mts.2020.50.
  11. B. Brummer, S. Cramon-Taubadel, and S. Zorya, "The impact of market and policy instability on price transmission between wheat and flour in Ukraine," European Review of Agricultural Economics, vol. 36, no. 2, pp. 203-230, June 2009, doi: 10.1093/erae/jbp021.
  12. T.-C. Ma, "Testing oligopolistic behaviors: Conduct and cost in Taiwan's flour market," Agribusiness, vol. 28, no. 1, pp. 1-14, Jan. 2012, doi: 10.1002/agr.20284.
  13. G. Valera, K. Taniguchi, "Asymmetric price transmission in Indonesia's wheat flour market," Asian Development Bank, Mandaluyong, Philippines, Economics Working Paper Series, no. 394, Aug. 2014, doi: 10.2139/ssrn.2479704.
  14. N. Hassanzoy, S. Ito, H. Isoda, and Y. Amekawa, "Cointegration and spatial price transmission among wheat and wheat-flour markets in Afghanistan", Applied Economics, vol. 49, no. 30, pp. 2939-2955, 2017, doi: 10.1080/00036846.2016.1251563.
  15. V. V. Martynenko, "Macroeconomic factors of market pricing under perfect competition," (in Ukrainian), Scientific bulletin of Polissia, vol. 2, part. 1, pp. 105-112, June 2017, doi: 10.25140/2410-9576-2017-1-2(10)-105-112.
  16. L. Xue, F. WenGe, "Asymmetric transmission between wheat and flour price in China: Under the background involving the minimum purchasing price policy," Acta Agriculturae Shanghai, vol. 34, no. 1, pp. 111-117, 2018.
  17. S. S. Deora, M. Kaur, "Predicting selling price of first time product for online seller using big data analytics," International Journal of Computer Science and Network Security, vol. 21, no. 2, pp. 193-197, Feb. 2021, doi: 10.22937/IJCSNS.2021.21.2.22.
  18. N. V. Biloshkurska, "Adaptive behavior models and their role in formation of enterprise economic security," (in Ukrainian), Actual Problems of Economics, vol. 114, pp. 101-105, 2010.
  19. N. V. Biloshkurska, "Marketing research of pricing factors in a competitive market," (in Ukrainian), Marketing and Management of Innovations, vol. 1, pp. 24-31, Mar. 2015.
  20. N. V. Biloshkurska, M. V. Biloshkurskyi, and L. A. Chvertko, "Influence of the security market condition on the collective investment development," Scientific bulletin of Polissia, vol. 3, part. 2, pp. 138-142, Sept. 2017, doi: 10.25140/2410-9576-2017-2-3(11)-138-142.
  21. O. Dragan, A. Berher, and J. Pustovit, "Estimation of marketing price policy efficiency of the enterprise of meat-processing industry," Management Theory and Studies for Rural Business and Infrastructure Development, vol. 40, no. 2, pp. 175-186, July 2018, doi: 10.15544/mts.2018.17.
  22. M. Iorgachova, O. Kovalova, and I. Plets, "Financial engineering as a tool for the development of corporate bond market in eastern europe on the example of Ukraine," Baltic Journal of Economic Studies, vol. 4, no. 4, 2018, pp. 120-125, 2018, doi: 10.30525/2256-0742/2018-4-4-120-125.
  23. O. V. Prokopenko, N. V. Biloshkurska, M. V. Biloshkurskyi, and V. A. Omelyanenko, "The role of banks in national innovation system: General strategical analytics," Financial and Credit Activity - Problems of Theory and Practice, vol. 3, no. 30, pp. 26-35, Sep. 2019, doi: 10.18371/fcaptp.v3i30.179455.
  24. United States Department of Justice. (2021). Herfindahl-Hirschman Index [Online]. Available: https://www.justice.gov/atr/herfindahl-hirschman-index.
  25. S. Sakirkin. "Ukrainian flour market - results for 11 months of 2019/20 MY." apk-inform.com. https://www.apkinform.com/en/exclusive/topic/1512259 (accessed Jul. 11, 2020).
  26. O. V. Bokii, "Flour market in Ukraine," (in Ukrainian), Visnyk ONU imeni I. I. Mechnikova, vol. 18, no. 4/1, pp. 37-41, 2013.
  27. Cabinet of Ministers of Ukraine. (1996, December 15). Resolution No. 1548, About establishment of powers of executive bodies and executive bodies of city councils concerning regulation of the prices (tariffs) (in Ukrainian). [Online]. Available: zakon5.rada.gov.ua/laws/show/1548-96-n.
  28. O. V. Braslavska, O. H. Penkova, I. I. Plets, T. Y. Sus, N. V. Biloshkurska, and M. V. Biloshkurskyi, "Management of the higher education institutions innovative potential: Formalization and evaluation," Revista Inclusiones, vol. 7, no. 4, pp. 624-645, July 2020. [Online]. Available: http://www.archivosrevistainclusiones.com/gallery/42%20VOL%207%20NUM%20OCTUBREDICIEMBRE2020%20REVISINCLUS.pdf.