Participance of Ukraine and Eastern European countries in global value chains

Abstract

The aim of the study. The aim of the article is to determine the role of Eastern European countries, including Ukraine, in global value chains and to form a list of potential areas for diversification of exports of the analyzed countries. Methods. In our research general scientific methods like system approach, analysis, synthesis, generalization, comparison were used. Also we used time series analysis, graphical method for visualization of research results. Results of the research. The article analyzes the activity of participation of Eastern European countries in global value chains. It is established that analyzed countries have a significant potential for export diversification, but their current share at global market does not exceed 3%. It is proposed to estimate export flows using indicators of economic complexity and diversity rate. The dynamics of economic complexity index was analyzed. It is found that the level of economic complexity in Ukraine is the lowest among analyzed countries with a tendency to decrease. The new export positions of each country were analyzed. It was pointed out that Ukraine introduced the largest number of new products, but the volume of export is the lowest among selected countries. An estimation of trade flows between analyzed countries and some global players was carried out. It was established that trade activity between Poland, Czech Republic and Slovakia was stronger than their trade with Ukraine. It has also been proven that the main trading partners of Eastern Europe are located within the European Union. Perspective directions of export diversification of selected countries were singled out and opportunities of cooperation between them are defined. It is established that Ukrainian companies need the support to increase the profitability of participation in global value chains and gain additional opportunities to present their products on the world market. Practical meaning. The results of the study can be used by economic entities for determining the most perspective export areas, by public authorities to monitor the effects of export diversification and to assess the effectiveness of reorientation of domestic enterprises. Prospects for further research. The obtained results are the basis for modeling and forecasting the consequences of the state policy of export diversification of Ukraine and estimating efficiency of such policies.