Comparative assessment of the inter-sectoral communications of the light industry of Ukraine and the certain countries EU

Abstract

The light industry is an important inter-sectoral segment and a chain of individual production areas. The purpose of the article is to carry out a comparative assessment of the cross-sectoral linkages of light industry of Ukraine with some EU countries and to prepare relevant analytical conclusions. The research revealed that the largest consumers of light industry products in 2013-2017 in Ukraine were the industries that belonged to this type of industrial activity (textile, clothing, leather and other materials), as well as the trade, furniture industry, public administration, and defense. The key problem for the functioning of the Ukrainian light industry is its high import dependence. In particular, the share of imports in intermediate consumption of light industry of Ukraine in 2017 was almost 60%. The share of imports in the expenditures of the Ukrainian light industry was almost 49%. The production activities of light industry in Ukraine use products of many ECs, but the main suppliers of raw materials and components are: textile production, production of clothing, leather, and other materials; production of chemicals and chemical products; wholesale and retail trade; supply of electricity, gas, steam, and air conditioning. In 2017, these four sectors totaled 70.74%. The following types of industrial activity in Ukraine have a significant potential for increasing output: production of rubber and plastic products; production of motor vehicles, trailers and semi-trailers; production of other vehicles; public administration and defense; compulsory social security; health care and social assistance. The further development and improvement of the technological level of Ukrainian light industry products requires greater integration of the latter with the trade sector. However, the trade sector in Ukraine requires a thorough “unshadowing”, i.e. legalization of all operations.