The place and role of corporations in domestic machine building

Abstract

The main trends in the development of machine-building enterprises in Ukraine are studied. The research proves that large and medium-sized machine-building enterprises sell more products, and the level of profitability of their activities is higher than that of small enterprises. These trends are due, in particular, to the fact that large and medium-sized machine-building enterprises could provide greater funding for the production and development of technical and technological processes, the creation of research units and diversification of markets through international trade and more. A decrease in investment in the development of domestic machine-building industries and a decrease in the share of machine building in investment financing of the industrial sector of the economy are revealed. The paper specifies that in recent years, international corporations, which have established their subsidiaries and production units in Ukraine, have started to play a significant role in the structure of machine-building industries. The share of TNCs in machine-building industries is determined. In particular, the paper shows that in 2020, about 18 subsidiaries of well-known world manufacturers of machine-building products were active, producing 10.45% of sold machine-building products in Ukraine. Such companies involved 10.32% of mechanical engineering workers in general, and the wage bill was 12.45%. The production specialization of machine-building TNCs is outlined. These are mostly intermediate manufacturers engaged in the manufacture of individual components for leading automotive companies. The research emphasizes that the vast majority of machine-building TNCs in Ukraine operate on tolling schemes. Foreign companies are the consumers of TNCs' final products. Accordingly, the share of such products in the Ukrainian export of mechanical engineering is also quite high. This primarily applies to the production of electrical machines (subgroup 85). The expediency of the development of domestic industries to strengthen their competitive position in domestic and foreign markets is emphasized.