Respondent
Theme
Franchising as a tool of formation of a single EU market
Defence Date
Annotation
This research focuses on the impact of franchising on the formation of a
single EU market. The evolution of classic and modern views on the formation
and development of a common and unified EU market was illustrated. The place
of franchise business strategy in European economic integration was defined. The basic mechanisms of state regulation of franchising and their impact
on its development and distribution were researched. Using panel data regression
analysis with fixed effects, the influence of state regulation of property rights
protection in the country (as the institutional variable) on the growth of
franchising in this country was defined.
It was found that for the franchisor it had positive and economically
significant causal effect, but for the franchisee it was opposite – weaker
regulation for the protection of property rights could be much more motivated to
develop their activities, creating a greater number of franchise outlets.
Franchising promotes the strengthening of economic relations between
countries at this stage of their development, as today it is involved in almost all
areas of economic activity and is one of the most effective and democratic ways
of transcending national markets. This is exactly why it was important to prove
the effect of franchising on economic growth.
For studying the impact of franchise value on economic growth the EU
Member States and Ukraine, an econometric analysis of panel data with fixed
effects was conducted, and the importance of franchising to the economic growth
of European countries including Ukraine was confirmed.
The usage of franchising as a mechanism to activate the innovative
activity in Ukraine will increase the effectiveness of innovation introduction in
the economy. A franchise form of business activity organization will enhance the
efficiency of the Ukrainian economy, and increase the competitiveness of
national products in the European market because of that the franchising stra-
tegies of European companies’ entry on the Ukrainian market were analyzed
(with the example of Poland). In the context of integration the efficacy of the
franchise tool for business in Ukraine was proven .
The dissertation aims to investigate the special features of a franchise
strategy of the entry of European networks into the Ukrainian market. It is
characterized with practical and social implications as regards extending the
knowledge of the possibilities to use еuropean franchises in the Ukraine. It is
characterized with practical and social implications as regards extending the
knowledge of the possibilities to use еuropean franchises in the Ukraine.
Keywords: franchising, common EU market, single EU market, integra-
tion, European business.