Improvement of the national production structure of Ukraine as a factor of positive changes in the foreign trade

Authors:
V.D. Koziak1, M.I. Pyrch1, I.A. Lekh1
1. Lviv National Polytechnic University (Lviv, Ukraine)
Section:
Problems of Management of Innovative Development
Pages:
259 - 268
Language:
Ukrainian
DOI:
10.21272/mmi.2017.2-24


Annotation

The aim of the article. The aim of the article is to analyze the influence of the national production structure on the foreign trade and to propose economic policy measures aimed at the structural reconstruction of the economy of Ukraine and development of competitive national production.

The results of the analysis. The high level of openness of the economy of Ukraine stipulates that GDP of Ukraine is sensitive to economic fluctuations in other countries. Economic slowdowns in the trading partners usually lead to a decrease in demand for the Ukrainian-made products. Export of Ukraine is raw-oriented. The largest shares in export in 2016 took products of plant origin (21,3%), fats and oils (10,6%) and non-precious metals (23,9%). On the other way, the share of machines, equipment, mechanisms in Ukraine’s export remained stable and relatively small – on average 10% in 2002-2015. The share of transport facilities was on average 5% of total export in 2002-2015 and it significantly decreased in 2014-2015.

The main articles of Ukraine’s import are machines, equipment, mechanisms (20,3%), mineral products (20%), chemical industry (15%). National production is highly dependent on imported mineral fuels and oil. On the other hand, the high proportion of highly-technological products in import indicates the problem of the low competitiveness of the national production.

The inefficient structure of export and import of Ukraine is caused by the negative structure of the national production, which, in particular, is displayed by the low share of the innovation-active enterprises; low share of goods, produced in Ukraine, which are sold through the trading network; low share of manufacturing in GDP.

Conclusions and directions for further research. Existing structure of the national production in Ukraine restricts the possibility of its participation as an equal partner in the international division of labour. In the process of restructuring the economy, special attention should be given to the development of the highly-technological industries with a high percentage of value added, in particular, the military-industrial complex, construction of rockets and airplanes, electroenergetics, agricultural machine-building.

The development of the national production, including highly-technological products, would reduce import. Implementation of modern innovative technologies could improve the competitiveness of the national products in the domestic and foreign markets and ensure economic development.  

The perspectives for further research are analysis of the business cycles synchronization in Ukraine and its trading partners; investigating foreign investments as a source of financing the structural economic changes in Ukraine.


Keywords
openness of economy, export structure, import structure, structure of production, competitiveness


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