Market Typology and Dynamics of Economic Growth
Poznyak S. P., Kolyada Y. V.

Poznyak, Sergii P., and Kolyada, Yurii V. (2025) “Market Typology and Dynamics of Economic Growth.” The Problems of Economy 3:321–343.
https://doi.org/10.32983/2222-0712-2025-3-321-343

Section: Mathematical methods and models in economy

UDC 330.34.01

Abstract:
It is found that the diversity of the economy’s market (perfect competition, monopoly, oligopoly, and monopolistic competition) serves as a key to endogenous adaptation in studying economic evolution through computer modeling. The research is based on a multivariate dynamic model created by the authors, which encompasses the influences of foreign trade, international capital and labor mobility, sectoral interconnections, and other factors of State regulation. The numerical results of this modeling were compared (for validation) with data obtained using orthodox one dimensional models of nonlinear economic dynamics. For the empirical field of the computer study, information on 150 countries worldwide was used, covering a wide range of socioeconomic indicators, which allowed the formation of statistically significant conclusions regarding the dependence of economic growth rates on the type of market and its structure. The evaluation of model accuracy was conducted using various metrics, including measures of absolute and relative forecast errors, coefficients of determination, and mean squared error. The inclusion of an expanded set of variables characterizing market structure and types of competition significantly improved the accuracy of digital modeling of economic growth. In particular, the obtained results indicate a substantial reduction in forecasting errors compared to traditional approaches, which not only highlights the importance of considering market structure in macroeconomic research and economic policy planning, but also demonstrates the appropriateness of adaptive modeling as a tool for strategy development. Thus, the research deepens the theoretical understanding of the relationship between market type and the trajectory of economic dynamics and lays the groundwork for developing tools capable of accounting for the structural characteristics of the economy when forecasting its growth.

Keywords: economic growth, models of economic growth, market structure, monopoly, oligopoly, perfect competition, monopolistic competition.

Fig.: 15. Formulae: 16. Bibl.: 17.

Poznyak Sergii P. – Postgraduate Student, Department of Mathematical Modeling and Statistics, Educational and Scientific Institute of Information Systems in Economics of the Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: poznyak.sergiy.w@gmail.com
Kolyada Yurii V. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Mathematical Modeling and Statistics, Educational and Scientific Institute of Information Systems in Economics of the Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: koliada_yurii@kneu.edu.ua

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