Analysis of the situation and trends in foreign trade of Dnipropetrovsk region: challenges and opportunities for the sustainable regional growth

Abstract

The article assesses the situation and analyzes the current trends in the development of domestic foreign trade through the case of Dnipropetrovsk region. The analysis is conducted through the lens of identifying challenges and opportunities for the region that are opened up by foreign trade. The impact of the region's foreign trade on its international economic relations in the context of Ukraine's European integration and the deployment of globalization processes is significant. Dnipropetrovsk region is one of the leading exporters and, according to the results of 2018, ranks second place among the regions of Ukraine by the export of goods. Therefore, choosing the region for the study is determined by the importance of the development of international trade in its territories to strengthen the position of Ukraine's international competitiveness. The article identifies and analyzes the indicators of foreign trade of the Dnepropetrovsk region with the world countries, as well as the economic result and effect of it’s influence. The focus is put on assessing and analyzing the dynamics of changes in the structure of export and import of goods. In particular, the tendency of decrease in export of services of Dnepropetrovsk region to the EU countries during 2014-2017 is analyzed as a negative trend. Positive trend visualizes through increasing of this indicator in 2018. Overall, the increase of the number of regional enterprises engaged in the foreign trade of goods was shown. Emphasis is placed on the commodity structure of export. It is composed of ferrous metals (46.3%) and ores, slag and ash (23.2%). The basis of the commodity structure of import is mineral fuels; oil and its distillation products (30.3%), machinery, equipment and mechanisms; electrical equipment (14.4%), chemical products and related industries (11.3%), and precious metals (11%). The dynamics of the change in the export structure indicates a certain slowdown in the process of transition to a ‘new type economy’, which should be based not on direct consumption of resources, but on innovation, knowledge and technology, their application in products and services production. The article is a summary of the situation in the field of foreign trade of the region, which is carried out in the framework of the task of drafting the Strategy of development of Dnipropetrovsk region for the period until 2027.