Direction Of Economic Policy Research Articles

The hospital emigration to another region in the light of the environmental, social and governance model in Italy during the period 2004-2021

The following article presents an analysis of the impact of the Environmental, Social and Governance-ESG determinants on Hospital Emigration to Another Region-HEAR in the Italian regions in the period 2004-2021. The data are analysed using Panel Data with Random Effects, Panel Data with Fixed Effects, Pooled Ordinary Least Squares-OLS, Weighted Least Squares-WLS, and Dynamic Panel at 1 Stage. Furthermore, to control endogeneity we also created instrumental variable models for each component of the ESG model. Results show that HEAR is negatively associated to the E, S and G component within the ESG model. The data were subjected to clustering with a k-Means algorithm optimized with the Silhouette coefficient. The optimal clustering with k=2 is compared to the sub-optimal cluster with k=3. The results suggest a negative relationship between the resident population and hospital emigration at regional level. Finally, a prediction is proposed with machine learning algorithms classified based on statistical performance. The results show that the Artificial Neural Network-ANN algorithm is the best predictor. The ANN predictions are critically analyzed in light of health economic policy directions.

Проблемы регионального развития Кыргызстана в условиях новых вызовов

The current situation in the world reflects the peculiarities of the interaction between American democracy and surrounding countries. All global economy participants need to determine their own position regarding the events taking place in the world and the growing confrontation. Under these conditions, there is a serious drop in the socio-economic sphere of the Kyrgyz Republic, which determines the relevance of studying the topic. The article shows the conditions and trends of socio-economic development of the Kyrgyz Republic’s regions and the features of its socio-economic development for 2010–2023. The issues of uneven regional development are discussed, in particular, the problems of regional economic policy in the context of modern challenges such as the geopolitical situation and digitalization processes, as well as the peculiarities of the trade relations formation are identified. The aim is to identify the key problems of regional development in the Kyrgyz Republic. The author conducts research of statistical material and publications of domestic and foreign scientists using the methods of analysis, synthesis, and induction. The study proposes measures to stabilize the situation in the region and the direction of economic policy in the new conditions of world economy. The most important measure is effort to increase the investments attraction in key sectors of the economy. The prospects and opportunities of the Kyrgyz Republic Government in overcoming key regional problems are considered.

Leviathan financialized?

AbstractIn The Rise of Central Banks, Leon Wansleben provides a perceptive account of the evolution of central banking practices in the United States, the United Kingdom, Germany, and Switzerland from the 1970s through the subprime mortgage crisis and the global pandemic. Focusing on the concrete practices of monetary policymakers, Wansleben usefully explores the relationship between the development of novel techniques of monetary policy implementation and the financialization of the economy, with the paradox that the central bank appears more powerful, but exercises this power in a system that is ever more prone to crisis. While agreeing with the broad strokes of Wansleben’s analysis, I raise questions about the nature of the ‘infrastructural power’ exercised by the state through financial markets, suggesting that the growing salience of the central bank in the policymaking apparatus should not be conflated with its independent influence over the direction of economic policy.

On the question of the significance of the energy security of Ukraine under the conditions of marital state and its legal regulation

The paper is devoted to topical issues of Ukraine's energy security in the context of martial law in general and the negative consequences that the russian federation is having on energy infrastructure facilities in particular. Attention is focused on the fact that the energy security of the state is a component of the national security of a modern civilized state and one of the important areas of ensuring national interests. The formation and implementation of Ukraine's energy policy in the context of national security is an extremely important direction of economic policy in the context of European integration and striving for world standards. It is emphasized that russia's full-scale invasion of Ukraine on February 24, 2022 endangered the normal functioning of Ukraine's energy system. A legal analysis of the state's energy security and legal responsibility for offenses in the energy sector under martial law is provided. The paper is based on the legislative base of Ukraine and norms of international law, works of domestic scientists, as well as materials of national and foreign periodicals, statistical compilations, including those of international organizations. It was determined that the protection of citizens of Ukraine and the energy sector also includes norms of civil, administrative, and economic law. However, in the conditions of martial law, the norms of criminal legislation that encroach on the energy security of the state and establish criminal liability for committing criminal offenses in the field of national and public security, in particular, sabotage, explosions, acts of terrorism, intentional destruction or damage to residential objects deserve the greatest attention - communal economy, violation of laws and rules of warfare, etc. It is substantiated that an integral and important feature of the listed criminal offenses is the occurrence of a socially dangerous consequence in the form of creating a danger to human life and health or causing significant property damage or the occurrence of other serious consequences, which consists in such changes when there is a real threat to normal functioning transport, communication, providing consumers with water and electricity.

Основы координации денежно-кредитной и бюджетно-налоговой политик для обеспечения роста российской экономики

The subject of the study is monetary and fiscal policy, which are one of the basic tools for regulating economic processes in the Russian economic system, the coordination of which is an essential factor in the success of ensuring the overall effects of economic policy. The purpose of the work is to establish effective measures to respond to emerging shocks in the context of current sanctions pressure from Western countries without mutually neutralizing one type of government policy with the tools of another policy. This article examines the main instruments of the state's economic policy from the perspective of their mutual influence and interaction in order to achieve positive results for the economic system. The essence of the tax mechanism has been established. In terms of budget policy, the mechanism of subsidizing enterprises is justified. The concept of a budget rule is defined. The goals and objectives of monetary policy are highlighted. It is concluded that since simultaneous indirect influence on macroeconomic processes is carried out through the instruments of the monetary policy of the central bank and the instruments of the fiscal policy of the Government, there is a problem of mutual influence of the adopted fiscal and monetary measures in terms of neutralizing or reinforcing each other effects that can have a negative impact on the achievement of The ultimate goal of both directions of economic policy is to ensure conditions for sustainable economic growth.

Problems of intensification of bank lending to the real sector of the economy in the conditions of martial law

Introduction. The difficult conditions of the economic situation in Ukraine during the period of martial law directly affected the activities of the banking system in terms of credit provision for the production and consumer needs of all market subjects, although problematic moments in the field of bank lending did not arise with the start of full-scale war, but accumulated over a quite long period time. Under such circumstances, the study of the main problems arising in the field of bank lending to the real sector should be considered particularly relevant, so that the functioning of banks in the conditions of martial law is stable and maximally provides the needs of the national economy in terms of credit resources.Purpose. The purpose of the study is to find out the main trends and problems of the organization of bank lending to the economy in the conditions of martial law and, on this basis, determine possible directions for optimizing the credit relations of banks with clients for the effective redistribution of monetary resources in favor of the real sector and contributing to the stabilization of the economic situation in the country.Methods. The methods of the system approach and generalization of data are used to assess trends and regularities in the organization of credit relations. In addition, general scientific and empirical techniques and tools of economic science, methods of analysis and synthesis, comparison, summary and grouping were used.Results. The main trends in the functioning of commercial banks on the credit market and the specific of the formation of the structure of bank assets are studied. Factors affecting the credit activity of the banking system under martial law are systematized. The actions of the National Bank to stimulate the work of the banking sector in lending to the economy are analyzed. The main directions of economic policy, which are necessary as a set of measures for the activation of bank lending to the real sector, are substantiated.Prospects. It is advisable to focus further scientific research on the assessment of the macroeconomic conditions for the effective functioning of the credit mechanism, in particular regarding ensuring the stable value of the national currency, preventing crisis phenomena in the banking system, and reliable legal protection of the interests of banks as creditors.

Innovative development as a factor of the post-war economy of Ukraine

The war in Ukraine, caused by the full-scale invasion of Russia, has an impact on the country’s innovation environment, which is due to a decrease in the level of investments, an increase in business risks, a reduction in domestic demand for products, a decrease in the number of innovative projects, and the availability of their financing. The purpose of this article is to confirm that the innovative development of Ukraine’s economy is a key direction of economic policy and a tool for the post-war reconstruction of Ukraine’s economy. The study of the current state of innovative activity in Ukraine and the comparison of the actual state of innovative development of Ukraine with other countries of the world was carried out using methods of scientific and statistical analysis. The latter made it possible to come to the following research results: to state a significant lag in innovative activity in Ukraine. According to the authors, this is related to existing problems, the main ones of which are: weak development of high-tech enterprises and industries; significant physical and moral deterioration of the production potential of most industrial enterprises of Ukraine; insufficient financing of the innovative sector of the economy, structural imbalance and low technological complexity, raw material export orientation and low competitiveness, etc.The authors of the article are sure that the restoration of the economy of Ukraine, ensuring competitiveness and economic growth largely depends on the use of innovative factors, the development of education and science. It is noted that the foundations of the state’s innovative policy in the post-war period must be formed today, creating conditions for the development of intellectual potential, increasing labor productivity, modernization of technologies, and structural restructuring of the economy.The results of this study can be applied when approving the plan for the post-war reconstruction of Ukraine and its direction towards a radical change in the structure of the economy, the transition from an agrarian-raw type to an industrial-innovative one based on the creation of a modern high-tech, digitised industry in the context of the spread of Industry 4.0 in the world. As a conclusion, the authors suggest that in the process of forming innovation policy, special attention should be paid to structural reforms, effective and transparent use of foreign aid, and strengthening of cooperation between manufacturers and scientific institutions.
 JEL classіfіcatіon: Е61, О16, О31, О38, Н56, Н11, Н52

APPLICATION OF A SYSTEMATIC APPROACH FOR THE ANALYSIS OF THE ECONOMIC SECURITY OF ENTERPRISES IN THE AGRICULTURAL SECTOR OF UKRAINE

Implementing measures to increase the economic security of strategically essential branches of the national economy is necessary to support the stability of regions and the national economy. Management at all levels should contribute to preventing the occurrence of critical externalities in the macroeconomic environment that can lead to negative consequences in the context of ensuring the country's socio-economic development. The fundamental nature of achieving a high level of long-term economic security is identifying key determinants capable of identifying and eliminating potential threats. It is essential to emphasize the need to support the country's food security and the conceptual provisions that must be reviewed concerning global processes such as food embargo, geopolitical confrontation, etc. Modern agriculture is in a difficult situation, and the economic condition of the entire agro-industrial complex requires the search for solutions to the problems of permanent development of each enterprise, considering the development of long-term economic security. Searching for ways to form more favorable ways of functioning is a strategic direction of economic policy at all levels of management. It requires several global measures to support agribusiness enterprises' current, medium-term, and long-term efficiency. Economic security of the agricultural sector as an economic category has a complex multi-level system structure: food; ecological safety; biological (resource); financial and credit; social; inventory management; social indicators; insurance provision; state regulation; agricultural cooperation; monitoring; agricultural information; agriculture and animal husbandry; cars; population employment; trade; wholesale food markets; scientific support. The system of full-fledged economic security of enterprises of the agrarian sector involves the development of its effective organizational and functional structure, which may include the scientific theory of economic security of the agrarian sector, the concept of food security, food policy, state, and public institutions that ensure economic security, organizational and economic mechanism, indicators and indicators of economic security, monitoring of the actual state of economic security of the agrarian sector.

The state economic regulation in the neoliberal globalism era

The paper shows the main causes, manifestations and particularities of the intensive globalization started in the second half of the twentieth century, which has had both objective and subjective aspects. It analyzes the subjective influence on the globalization made by the neoliberal ideology and the functioning of international actors. The work has outlined the main theoretical contradictions, myths and flaws in the current economic mainstream regarding the role and functions of the state in the economy and state economic regulation. The study reveals and statistically confirmed the main negative trends, processes and phenomena at the national and global levels in the era of the globalization caused by the neoliberal concept, such as: (1) growing income and wealth inequality at the global and national levels; (2) problems with using natural resources and environment; (3) uneven development among countries; (4) the growing negative influence of transnational capital; and (5) macroeconomic instability and hypertrophied development of the financial sector (financialization), etc. The study defines the main economic policy directions in order to eliminate the negative impact of neoliberal economic thought on socio-economic development. The paper also describes and evaluated the main scenarios for the further development of views on state economic regulation among scholars and state managers. It shows that the most likely scenario is the increasing of the role of state economic regulation. On the one hand, states can form rather aggressive policies with trade wars, protectionism, military and diplomatic conflicts, isolation, localizaion, etc. On the other hand, wanting to protect the interests of their societies, states can try to build a fair and inclusive global space, which would be the most beneficial development scenario for humanity. The work identifies the main challenges for state economic regulation caused by globalization and it also shows needed transformations: (1) increasing the level of subjectivity of the state as a bearer of the national interest, (2) ensuring the institutional foundations of inclusive global development based on the principles of equality, justice and transparency, (3) neutralizing the negative impact on national socio-economic security carried out by international actors.

Egypt Amends its Competition Law to Establish a Pre-Merger Control System

On 29 December, Egypt amended its Law on Protecting Competition and Combating Monopolistic Practices No 3/2005 (ECL) to grant the Egyptian Competition Authority (ECA) the power to pre-examine and pre-approve mergers, acquisitions, and economic concentrations.1 This long-anticipated amendment gives the ECA powers that the ECA had previously attempted to extract for itself despite the law. The question that remains is whether this approach and its applications is compatible with the directions of economic policy to support and encourage national industry2. In our research, we discuss these new legal amendments. As for evaluating the actual impact, only time will tell.3 ... We briefly discuss the regulatory environment before the amendments, then we discuss the amendments themselves and finish with some concluding remarks. The ECL was promulgated in 2005, and a special administrative body was established to implement its provisions, the ECA. The legislation set a general criterion for prohibited monopolistic activities, and then enumerated its practical forms.

“BASIC PROVISIONS OF PEOPLE’S MONARCHIST UNIONS” AS A STRATEGY OF NATIONAL DEVELOPMENT: ON THE QUESTION OF ASTRAKHAN RIGHTISTS’ PROPOSALS FOR THE PRESERVATION OF STATEHOOD (beginning of the 20th century)

This article discusses the main provisions proposed by the Astrakhan People’s Monarchist Party in the political realities of the First World War in order to prevent a revolutionary crisis. The crisis phenomena growing in wartime conditions in the late Russian Empire required the development of a national development strategy to prevent a possible catastrophe. The Astrakhan People’s Monarchist Party, represented by the chairman N.N. Tikhanovich-Savitsky, offered the views in this direction. The document, called “Basic Provisions of the People’s Monarchist Unions”, contained the positions of the Astrakhan rightists on the main problems of the state system.
 
 The main purpose of this study is to analyze the conceptual positions of the Astrakhan People’s Monarchist Party in the context of a rather difficult war for Russia. Materials and methods. Based on the analysis of archival stock materials and programmatic sources using historical-genetic, retrospective and problematic methods, the main directions of the positions of provincial conservative forces, which carry the paradigm of further national development, are considered.
 
 Research results. The position of the Astrakhan People’s Monarchist Party on the issues of the system of supreme government, the role and place of elected representative institutions, in which the party, professing right-wing conservative views, connected the existence and further development of the Russian state with the preservation of autocratic power as meeting its spirit, was studied. The fundamental views of this party on the religious issue, the problems of education and upbringing, and foreign policy were studied. The proposals of the Astrakhan right in ensuring the country’s defense capability, determining the main directions of economic policy in the pre-revolutionary year are analyzed. The demands of the provincial right-wing conservatives to introduce universal conscription, ensure the country’s military-technical sovereignty, develop its own agricultural and industrial production, and expand the domestic market were seen as the basis of the country’s independence. Conclusions. The conclusion is made about the nature of the main provisions of the people’s monarchist unions proposed by the Astrakhan People’s Monarchist Party as measures to preserve the Russian statehood and national development strategy.

1962년 헌법 제111조의 형성과 의미

The experience of Joseon, which naturally entered the scope of the controlled economy through the Governor-General, became the basis for operating state-led economic development policies along with the experience of those returning from Manchuria. Park Chung-hee, who experienced Manchuria as a Japanese soldier, could not escape this influence and naturally came to have an idea of state-led economic development. Nevertheless, the direction of the economic policy of mixing the planned economy with the principle of free economy was set in the early days of the coup, which was accepted in the process of adapting the economic development plan created by the last government. The free economy of the last government had the meaning of clearing the deep-rooted evils such as government corruption under the Rhee Syngman administration, which was the demand of the April 19 Revolution. The coup forces, which advocated the succession of the April 19 revolution, emphasized the liquidation of deep-rooted evils. Therefore, the principle of free economy and state-led economic development could be harmonized for coup forces such as Park Chung-hee. In light of the basic position of the state-led economic development theory of coup forces, economic freedom and respect for creativity mean revitalizing private voluntary mobilization and economic activities within the framework of strong state control. The process of forming the provisions of constitutional economic principles was the work of shaping this economic policy direction already established by the military government into the constitution, so there was no need for a special debate on the content.

Sanctions Pressure on the Russian Economy: Ways to Overcome the Costs and Benefits of Confrontation within the Framework of Import Substitution

The sustainable development of the national economy, taking into account the creation of mechanisms for ensuring economic security, technological sovereignty and preventing threats to the localization of import supplies of final and intermediate consumption goods, is one of the priority directions of economic policy in the conditions of systemic restrictions formed under the pressure of sanctions. In this regard, the study of the key externalities generated within the framework of the sanctions confrontation is an extremely popular task, both for science and practice. In this paper, the authors pay attention to both the actualization of the problem posed and an overview of some of the costs and benefits that can be extracted in the new reality for the national economic system of the Russian Federation. The main purpose of the study is to systematize and analyze the key parameters of economic growth in the Russian Federation under the sanctions pressure of the 2022 model and substantiate the policy of intensification of import substitution as a key mechanism for ensuring sustainable development in the medium and long term in the new reality. The subject of the study is the restrictions imposed by a number of Western countries in relation to the Russian economy, the costs they generate and the opportunities for building a new model of economic growth. As the main results of the study, it is necessary to highlight the systematization of sanctions and restrictions imposed on Russia in 2022; identified trends in the formation of key macroeconomic parameters of the Russian economy, revealing the features of labor market development, GDP formation, investment and business activity, etc.; systematization of risks and prospects of economic growth, including the projection of theoretical models of economic dynamics (IS-LM, AD-AS) on the received estimates; identification of the dependence of the national economy of the Russian Federation on the import of technologies and intermediate/final consumption goods, followed by justification and development of a model to stimulate the policy of import substitution within the framework of the activation of NTR.

Impact of Tax Revenue and Infrastructural Development on Economic Growth in Nigeria

This study seeks to establish the impact of tax revenue and infrastructural development (through investment) on economic growth in Nigeria. It is expected that tax revenue should serve as an incentive for infrastructural development to strive and yield economic growth. The data used in the study was obtained majorly from World Development Indicator (WDI) Database 2022. Tax revenue was proxied as the actual total tax revenue collected from VAT, and CIT, and PPT. This formed the independent variables as well as Gross Capital formation (GCF) to represent infrastructural development. While the dependent variable is RGDP. The ARDL model was employed after variables were stationary at both levels and at first difference. The study found a significant long-run relationship among the variables. Specifically, PPT was found to be a strong contributor to economic growth in Nigeria. VAT was only positively significant at 15% accounting for economic growth. GCF and CIT were not significant in the study. The research employs a quantitative method of data analysis. These findings connote that GCF, VAT and CIT are yet to fully be additive components in the Nigerian economy. Government economic policy and financing henceforth should reflect good economic policy direction that will open up these components for economic growth in the country.

ՀՀ տնտեսական առաջընթացն ապահովող հիմնասյուները գլոբալ աշխարհաքաղաքական տեղաշարժերի պայմաններում / Main Pillars Ensuring Economic Progress of the RA Amid Global Geopolitical Shifts

Global geopolitical shifts that took place in 2022 significantly changed the patterns and rules of global economic life, resulting in problems of economic security in almost all countries. These uncertain perspectives of economic development also impacted our country. On the one hand, some elements of revitalization of economic life are emerging, on the other hand, new risks are appearing. Having an underdeveloped economy, the Republic of Armenia faces both positive and negative consequences of the above-mentioned economic changes to a great extent. Therefore, the aim of this paper is to study and improve the main directions that will ensure the tangible economic progress of Armenia. Different directions of economic policy should be coordinated. Otherwise, their effectiveness can be very low. Currently, Armenia’s economic growth is driven by sectors such as construction, IT, industry, banking and catering. While some Armenian IT startup companies achieved success internationally, it should be noted that the number of startup companies developing global solutions and entering international markets is very small, which does not contribute to the faster and more stable development of the ecosystem.

Heydar Aliyev's multifaceted economic policy and the development of entrepreneurship in Azerbaijan

The return of the Great leader Heydar Aliyev marked the beginning of a qualitatively new era - the great path leading to the center of independent state building. Under the leadership of Heydar Aliyev, radical reforms were carried out, and the economic policy related to its development turned into a state strategy that transformed the country into development, and a large number of programs ensuring its independence were developed. Macroeconomic stability of the state was achieved under the leadership of the great leader, the legislative framework for the organization of entrepreneurship, which is the driving force of market economy, and measures aimed at bringing the private sector to the fore were started. The formation of entrepreneurial relations in the market economy model are integral economic parts of the system. The need for the economic development of the country to be the private sector - entrepreneurial activity came to the fore. That is why the formation and development of entrepreneurship is a threat as a priority direction of economic policy. During his leadership, Heydar Aliyev tried to realize the national economic development model with radical reforms, to form powerful entrepreneurs, and to strengthen their positions in society. It is from this economic point of view that special assistance is given to scientific research of Heydar Aliyev's multifaceted policy in the organization and development of Entrepreneurship in Azerbaijan.

Building a Model Linking the Indicator of the Standard of Living of the Population with a Set of Indicators of Socio-Economic Policy in the Regions of Russia

The work contains a study of one of the components of the quality of life - the standard of living of the population - using the example of an analysis of the regions of the Central Federal District. Using Rosstat data, a list of the most important socio-economic indicators characterizing the standard of living of the population was formed, and then an integral indicator was built on them. This indicator can be used as one of the criteria for the performance of regional authorities. The dependence between the obtained indicator and the lag values of variables characterizing the level of economic policy development is shown: human development, innovative activity, transport infrastructure and a number of others. On this basis, an econometric model is built that has a high statistical quality, since the unbiased estimate of the determination coefficient R2 is 95% and the model approximation error is 5.4%. Estimates of elasticity coefficients of explaining variables in this model make it possible to streamline the degree of influence of the corresponding directions of economic policy on the indicator of the standard of living of the population. The presence of lag explanatory variables allows you to make forecasts of indicator values with a planning horizon of 1-2 years.

EVALUATION OF THE ECONOMIC POTENTIAL OF TRADE INDUSTRY COMPANIES OF UKRAINE

The economic potential of Ukraine’s trade industry for the period 2014-2020 is estimated based on the analysis of structural changes in the industry and economic potential of trade companies. Pre-war performance indicators show that the trade industry of Ukraine was one of the drivers of the economy. At the same time, the period of the beginning of the COVID restrictions led to the growth of not only e-commerce, but also trade in general. But Russia's full-scale invasion of Ukraine, which began on February 24, 2022, caused a great damage to both the Ukrainian economy in general and the trade industry in particular. The study reveals the consolidation of regional business trading companies and further specialization of small businesses. The drivers of the trade industry development are the growth of information and technical and technological potential of its companies. Accordingly, among the priority areas for capital investment in the industry are software, and obtaining patents, licenses and trademarks, both own and those obtained by partner companies. Assessment of the financial potential of companies in the trade sector reveals a tendency to move from long-term to short-term financing, which indicates increased business risks. The sources of the risks include the rising energy prices and instability of the foreign economic situation with constant changes in the regulation of the industry. Estimates of the economic potential of Ukraine’s trade industry are supplemented by an analysis of warehousing, which is a related industry for trade. As cases of destruction of warehouses during the current hostilities have shown, the development of warehousing is critical for the realization of the economic potential of trade. It was found that the warehousing industry shows uneven development by region. Based on the analysis, the author formulates a series of recommendations on the directions of economic policy for the post-war recovery of trade and warehousing.

The Gambia

The repercussions of the war in Ukraine are threatening economic and social stability. Following a slight uptick in July-August, new COVID-19 cases have declined to almost nil recently while the vaccination rate remains low at around 22 percent of the population. The Gambia is also suffering from more frequent climatic shocks, including a recent major flooding. The country continues to advance social and justice reforms. Following a parliamentary election, President Barrow reshuffled the Cabinet in May 2022, without any expected change in the overall direction of economic policies.

ОЦІНКА ЕКОНОМІЧНОГО ПОТЕНЦІАЛУ ПІДПРИЄМСТВ ТОРГОВЕЛЬНОЇ ГАЛУЗІ УКРАЇНИ

The economic potential of Ukraine’s trade industry for the period 2014-2020 is estimated based on the analysis of structural changes in the industry and economic potential of trade companies. Pre-war performance indicators show that the trade industry of Ukraine was one of the drivers of the economy. At the same time, the period of the beginning of the COVID restrictions led to the growth of not only e-commerce, but also trade in general. But Russia's full-scale invasion of Ukraine, which began on February 24, 2022, caused a great damage to both the Ukrainian economy in general and the trade industry in particular. The study reveals the consolidation of regional business trading companies and further specialization of small businesses. The drivers of the trade industry development are the growth of information and technical and technological potential of its companies. Accordingly, among the priority areas for capital investment in the industry are software, and obtaining patents, licenses and trademarks, both own and those obtained by partner companies. Assessment of the financial potential of companies in the trade sector reveals a tendency to move from long-term to short-term financing, which indicates increased business risks. The sources of the risks include the rising energy prices and instability of the foreign economic situation with constant changes in the regulation of the industry. Estimates of the economic potential of Ukraine’s trade industry are supplemented by an analysis of warehousing, which is a related industry for trade. As cases of destruction of warehouses during the current hostilities have shown, the development of warehousing is critical for the realization of the economic potential of trade. It was found that the warehousing industry shows uneven development by region. Based on the analysis, the author formulates a series of recommendations on the directions of economic policy for the post-war recovery of trade and warehousing.