Foreign Trade of Ukraine’s ICT Sector: state and prospects

Abstract

The article analyses the dynamics, features and structure of foreign trade of the ICT sector of Ukraine in 2008-2022, focusing on the exports and imports of ICT goods and services. It has been determined that the commodity structure of Ukraine’s ICT sector exports is dominated by communication equipment and consumer electronics, and that Ukraine mainly exported ICT goods to European countries, in particular to Hungary, Russia, Moldova, and Austria. At the same time, Ukraine imported the most communication equipment, as well as computer and peripheral equipment, mainly from China and Vietnam. The study of dynamics showed a long-term trend of decreasing exports and increasing imports of ICT goods by Ukraine. Additionally, the trade balance and indices of international trade in ICT goods showed a low level of specialization of Ukraine in the production and export of ICT goods. Having examined the structure of Ukraine's ICT services exports, we found that computer services predominate. The main importers of ICT services from Ukraine include the United States, the United Kingdom, Switzerland, Malta, and other countries. In addition, it has been determined that technology companies from countries that import ICT services from Ukraine have gradually opened their own R&D centres in Ukraine. The study of the dynamics of foreign trade in ICT services during 2008-2022 showed a constant upward trend in the volume and share of ICT services in Ukraine's exports of services. In addition, the calculation of the trade balance and international trade indices for 2008-2022 showed a high level of specialization and competitiveness of ICT services in the Ukrainian economy. The article identifies the main factors and reasons that influenced the trends in foreign trade of the ICT sector of Ukraine. Finally, three possible scenarios for the development of Ukraine's ICT sector over the next few years were outlined.