Integration of Ukrainian industry into the global value chains

Abstract

The paper examines the forming of global chains and defines the features of their forming on the example of machine-building enterprises. Outlining the integration of the Ukrainian industry into the global value chains is the subject of the research. The paper aims to develop the provisions regarding the establishment of global value chains in modern economic conditions. Many researchers argue that globalization has contributed to a kind of global economic optimization. The outbreak of COVID-19 causes the current economic recession and a simultaneous complete reorientation of global trade logistics. The analysis of the features of offshoring on the example of the functioning of industrial enterprises in the country is the task of the research. The forming of a reliable system of suppliers monitoring that also represents the importance of selecting supply specialists is a decisive factor. Based on the system analysis the paper determines that despite the availability of obstacles to the location of foreign capital in Ukraine, there are certain perspectives for the integration of industrial enterprises into the global value chains. The results of the research show that despite the current socio-economic condition, Ukraine is attractive for foreign investment due to significant return on capital investment compared to the respective economic activity types of European countries, favorable geographic position, and availability of cheap but skilled workforce. An efficient socio-economic development is impossible without the high technology and innovative activity of the country. Yet, political instability and a set of barriers to foreign investment attraction remain to be the key problem for socio-economic development.