Ukrainian Exports Research Articles

Prospects for trade in high-tech products between Ukraine and Japan, The People's Republic of China and The Republic of Korea in the conditions of the new industrial revolution

Introduction. Today in the context of the deployment of the fourth industrial revolution for developing countries (such as Ukraine) the problem of preserving and increasing exports of high-tech products in the conditions of curtailment of production is exacerbated. The question of determining the prospects for the development of trade in high-tech products between Ukraine and the Asian countries-leaders by 2020is extremely relevant. Materials and Methods. Methods of statistics, morphological and logical analysis, comparative studies, and correlation-regression analysis have been used for the purpose of research. Results.As result of the study, it has been established that Ukraine has comparative advantages in trade with Japan, China and the Republic of Korea in such groups of goods as air floats and spacecraft, as well as medical equipment and optical instruments. On basis of correlation-regression analysis, relationships between factors were identified and regressive models of foreign trade of high-tech goods of the studied countries were constructed. Recommendations for increasing the efficiency of trade in high-tech goods of Ukraine with Japan, China and the Republic of Korea are developed. Conclusion.For increase Ukraine's high-tech exports to leading Asian countries - technological leaders, it is expedient to implement the following measures: (1) state support and encouragement of private and state-owned enterprises to high-tech production; (2) creation of "technological infrastructure" by adapting education to the current needs of production, developing industrial clusters, etc.; (3) increasing the competitiveness of Ukrainian high-tech exports, especially those sectors where comparative advantages were found; (4) searching for opportunities to enter new markets.

Ukraine-Turkey: political and economic aspects of development and prospects

The issues of studying of the modern Ukrainian-Turkish relations and their role in the foreign policy strategy of both countries are paid not enough attention; however, they are critically important, taking into consideration the importance of these relations for both Ukraine and Turkey. The subject of the research is the Ukrainian-Turkish relations. The goal of the article is genesis of establishment and development prospects of the basic foreign policy vectors of the relationship between Ukraine and Turkey. The objective is to analyze genesis of establishment of the relationship between Ukraine and Turkey since acquisition of the independence by Ukraine; to determine the primary priorities of collaboration of Ukraine and Turkey; to consider the main stages of establishment of the relationship between Ukraine and Turkey; to define the political constituents of the relationship between Ukraine and Turkey; to specify the overriding priorities and indexes of economic partnership between Ukraine and Turkey; to substantiate the possible scenarios of the development of the relationship between Ukraine and Turkey. The general scientific methods are used, such as: the system analysis – for the determination of the peculiarities of establishment and development of the basic foreign policy vectors of the relationship between Ukraine and Turkey; the factor analysis – for the formalization of the cause-and-effect relationship of the studied impact factors between Ukraine and Turkey; and also the scenario method whereby the most appropriate scenario of the development of the relationship between the mentioned above countries from 2010 till 2020, that it is suggested to name coherent. The following results are obtained: on the basis of the conducted analysis the problem aspects in the political and economic spheres are drawn out, particularly, it is substantiated that Turkey with regard to Ukraine is characterized with economization of relations; the economic components that facilitate the expansion of the amount of Ukrainian goods in the Turkish market are identified, specifically, it is analyzed that creation of the free trade zone will result in the extension of the commodity circulation between countries at least twice. The conclusions: the role of the economic factor in the relations between two countries is exposed; comparison of some economic indicators is done; the basic indexes of the export and import are analyzed; the prospects of the trade and economic cooperation and advancement of the Ukrainian export to Turkey are determined; three possible scenarios of progress of the collaboration till 2020 with pointing the most appropriate and the most impermissible ones for Ukraine are defined.

GLOBALIZATION AS A CHALLENGE TO UKRAINIAN EXPORTERS OF IRON ORE RAW MATERIAL

The purpose of the article – to identify the main characteristics of iron ore mining and beneficiation enterprises that allow carrying out income-generating export activity in terms of increasing the level of globalization of the country. Methodology. Information background of the research consists of publications of KOF rating of the level of globalization of countries of the world (1991–2016), annual reports of the United States Geological Survey (1995–2016), statistical data of the State Statistics Service of Ukraine (2012–2016), scientific publications and findings of experts of the national and world markets for iron ore. Achieving the purpose of this article provides for the following stages and methods of scientific research: time series analysis – for evaluating dynamics of globalization index for Ukraine, dynamics of global iron ore production and export of iron ore raw material by Ukrainian producers; vertical analysis – for determining the structure of global iron ore production; methods of qualitative analysis (expert estimation) – for defining characteristics of mining and beneficiation enterprises that allow ensuring competitiveness in the global market; generalization – for determining options of sales of Ukrainian iron ore production in international markets in terms of globalization. Results. High-level globalization of Ukraine makes it significantly dependent on the condition of global markets of key export branches of the national economy. Ukraine belongs to the top ten countries with the largest reserves of iron ore and its production in the world; however, an insignificant part of the market doesn’t allow influencing its condition. The surplus of iron ore and deficit of iron-ore pellets in the global market stimulate the interest of Ukrainian mining and beneficiation enterprises in projects on improving their existing production facilities. The volatility of the global market for iron ore raw material increases the level of financial and investment risks. Practical significance. The established trends in globalization of Ukraine and the status of Ukrainian producers of iron ore raw material in the global market allow us more thoroughly analyse their competitive advantages in the long view and develop risk reduction programs. Alternatives to sales of Ukrainian iron ore production of vertically-integrated holding under globalization are made. Value/originality. Determined advantages of Ukrainian exporters of iron ore raw material in the global market that, in terms of high-level globalization of the country, are provided by the corporate synergy of the transnational vertically-integrated exporting company.

Ivan Franko National University of Lviv

The structure of Ukraine’s exports to the EU is estimated and the problems and opportunities for domestic exporters under the impact of the Free Trade Area Agreement between Ukraine and the EU are defined. It is indicated that trade liberalization does not allow free access to the EU market for Ukrainian exporters; Ukraine must adopt the EU legislation in the field of technical standarts . The reasons for increasing the intensity of Ukraine-EU trade, including the elimination of customs duties, the reorientation of trade flows from the Russian Federation to the EU, the growth in the purchasing power in the EU and decline in it as a result of the economic crisis in Ukraine, were determined. Particular emphasis was placed on the progress in meeting EU technical and environmental regulations. Ukraine has the lowest position of eco-innovative efficiency in comparison with the EU members. Therefore, taking into account the negative structure of domestic exports and EU technical standarts and norms, an urgent transition to a deep eco-innovative development of export industries is highly required . The implementation of eco-innovative projects and technologies by Ukrainian producers of different sizes (small, medium, large) is analyzed. The study shows that eco-innovative activities of Ukrainian enterprises is directly related to their size: the large enterprises have large funds, produce more products, are more interested in entering the EU market, and therefore have more opportunities and needs to meet EU technical (ecological) requirements. It is concluded that the FTA Agreement should become an additional stimulus for the eco-innovative activities of Ukrainian expoters due to the need of their meeting the European standards of quality and criteria of eco-production. The major barriers to the development of the enterprises’ eco-innovative activity have been identified as the lack of capital, lack of motivation, lack of knowledge and experience, lack of technical knowledge, lack of cooperation between the research institutions and enterprises, unfavorable political, informational and social environment, corruption. Key words: eco-innovative activities; exporters; eco-innovations; Ukraine-EU association agreement; Free Trade Area Agreement between Ukraine and the EU.

Ukraine Shall Make Itself Known to the World

Abstract. The interview with Luc Jacobs, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Belgium to Ukraine, familiarises us with his account of the modern state of bilateral relations between Ukraine and Belgium. The article runs about prospective areas of activity in the course of the Ambassador’s tenure, potentially attractive fields for Belgian investors who need development in Ukraine, and implementation of new initiatives. The article describes, inter alia, the cooperation between seaports of Belgium and Ukraine. Belgium is interested in further strengthening its cooperation with Ukraine in the mutually promising realm of sea transport. Success of Ukrainian exports depends on success of Belgian seaports, since Belgium is a bridge between Ukrainian goods and Europe. The signature of the Association Agreement between Ukraine and the EU gave impetus for strengthening such cooperation. The Ambassador paid attention to the fact that the Embassy of Belgium to Ukraine maintains contacts with the Ukrainian diaspora in Belgium. Though small, it has a significant influence on public opinion, protects interests of its fellow citizens, spreads patriotic concepts abroad, and collaborates with Belgian non-governmental organisations operating in Ukraine. The Ambassador of Belgium portrays Ukrainians in a sympathetic light. The Ukrainian nation cherishes ancient traditions and discovers modern art schools. Ukrainians are fond of art and ready for experiments. The number of art galleries and exhibitions in Ukraine impresses, the concert halls and theatres are always full, and the spectators always honour people of art. The Ambassador is astonished and glad how many facts Ukrainians know about Belgium and at their desire to find out more about the state and its capital. The Ambassador is proud to have been here and support Ukraine at a critical juncture of its national development that, however, came at a high price. Keywords: the Kingdom of Belgium, Ukraine, nation, Ukrainian diaspora, bilateral relations, Belgian investors.

Marketing prospects of small developed African countries assessment for traditional Ukrainian exports

Marketing prospects of small developed African countries assessment for traditional Ukrainian exports

Дослідження українського ринку яєць та яйцепродуктів

В статті показано, що український ринок яєць в останні роки характеризується спадною кон’юнктуро. Це пов’язано з великими обсягами виробництва і обмеженим експортом через спалахи в країні пташиного грипу. Визначено, що частка особистих селянських господарств в загальних обсягах виробництва у 2016 р. становила майже половину всієї виробленої продукції. Графічно відображено і охарактеризовано динаміку виробництва яєць в сільськогосподарських підприємствах і особистих селянських господарствах за 1990–2016 рр. Охарактеризовано коливання цін на яйця, зміни обсягів експорту яєць та яйцепродуктів. Проведено аналіз структурних змін в експорті української яєчної продукції та ринках її продажу. Визначено найбільших виробників яєць в Україні і охарактеризовано двох перших з них. Проаналізовано їх діяльність за минулі три роки, визначено частку ринку, проблеми, їх причини і можливі шляхи вирішення.

Зміна традиційних позицій українського експорту

Зміна традиційних позицій українського експорту

ТЕНДЕНЦІЇ, ПЕРСПЕКТИВИ ТА ПРОБЛЕМИ РЕАЛІЗАЦІЇ УКРАЇНОЮ ЇЇ ЕКСПОРТНОГО ПОТЕНЦІАЛУ

The dynamics of Ukrainian exports has been studied, the analysis of the current export potential in the state has been carried out. The complex of internal and external factors influencing the Ukrainian export is defined, and also its main problems are highlighted at the present stage of development. Also, the dominant tasks in the field of financial assistance to exports have been clarified. Take into account the current state of the Ukrainian economy and the urgency of the problems of developing the country's foreign trade potential, it was addressed the necessity for creating favorable conditions for the dynamic development of exports based on a progressive change in specialization and increasing the competitiveness of the national economy. Because the practice of business development shows that without effective management can not ensure the success of the country and its enterprises in competing for positions on the international markets

СТРАТЕГІЧНІ ІНСТРУМЕНТИ ДЕРЖАВНОЇ ПІДТРИМКИ РОЗВИТКУ ЕКСПОРТНОГО ПОТЕНЦІАЛУ УКРАЇНИ

The most effective and rapid withdrawal from the crisis in Ukraine export sector is an important current challenges. Justification directions of improving strategic tools for state support of export potential of Ukraine is the purpose of the article. The structure of Ukrainian exports is unsatisfactory. Significant raw oriented economy, prolongation trade and transit embargo by Russia, socio-economic and political instability are major factors of Ukraine’s exports problems in 2016. Development of Export strategy is a necessary step for development of export potential of Ukraine. The state position in supporting and ensuring the economic system in general and the export potential of economic agents Ukraine is weak. Project Export Strategy of Ukraine for 2017-2021 years were р resented by experts of the Ministry of Economic Development and Trade in March 2017. The project contains a number of debatable issues. The purpose of export strategy has been corrected in the article. Comments to the formulation of strategic goals have made in the article. The main provisions of the theory of resource curse have been adapted to the development conditions of the export potential of Ukraine. The role and direction of state support of export activities were identified. Formation of financial support of Ukrainian export enterprises is the most important element of the action plan. Export - credit agency should be created in a short term. Public-private partnership was defined as optimization tool of development projects financing export sector. Mechanisms of interaction between Export- credit agency and businesses doesn’t exist in Export strategy. Increasing export potential of innovation is a priority of the rising export sector. After approval of Export strategy carefully planned tactical measures and control the process of their implementation in practice is necessary. The active cooperation with Government of Ukraine real sector economy enterprises, venture capital and researchers is a prerequisite for the development of national export potential. The principles of enhancing responsibility of all participants in export activity for the results of the strategy implementation is the subject of further research.

ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ ЕКСПОРТУ АГРАРНОЇ ПРОДУКЦІЇ УКРАЇНИ

The aim of this publication is to review current trends Ukrainian exports of agricultural products and develop recommendations on the prospects of export of agricultural products in Ukraine. The problem of marketing of agricultural products by agricultural enterprises is considered in the article. The distribution channels of agricultural products in Ukraine are analyzed. The factors constraining agricultural exports are established. Advantages and disadvantages of agricultural products within the Association Agreement with the European Union are analyzed. Analyzed the first results of cooperation with the EU in agriculture. The problems of the use of quotas dispose of agricultural products within the Association Agreement with the European Union are identified. An simplified legalization exports from Ukraine to the EU of animal origin products is offered. The export of agricultural products to other countries is analyzes. The modern trend in the export of Ukrainian agricultural products based on the reorientation of Asian and European markets is considered. The strategic directions of development of Ukrainian agricultural exports are identified.

WOOD EXPORT IN UKRAINE: PROBLEMS AND PROSPECTS

Wood is a source of funds for certain business entities regardless of form ofownership and filling the state and local budgets, and also the object of protection and restoration. However, timber resources, especially as raw material, are often illegally exported in large volumes from Ukraine. This situation made the public authorities of Ukraine establish a moratorium on timber exports as raw material. The purpose of the paper is to study current problems and prospect for wood export in Ukraine. Conducting the research we analyzed quantitative and qualitative indicators of wood exports from Ukraine. We have considered the main prerequisites for "features of government regulation of entrepreneurship related to the realization and export of timber for temporary ban the export of timber in raw form". After that we compared the export value of wood within the regions of Ukraine. We have also investigated Ukrainian export market of wood in specific countries. The authors analyzed corrupt practices of government and entrepreneurship in the management of forestry and considered accounting features of wood in Ukraine as well. Thus the conclusions are as follows. Significant impact on the reduction of forest area in Ukraine is caused by local residents of forest areas that use wood for their own needs and commerce. Not only Ukrainian corruption is responsible for the smuggling scheme of timber export. In addition, large quantities of wood are illegally cut down and sold on the domestic market. The law is important for a huge number of stored wood. At the same time, public authorities should oversee survival of forestry enterprises of different ownership. Concerning private business, the public financial and commercial institutions supported by the National Bank of Ukraine, should have different methods of financing and investment to create a foundation for healthy competition between public and private wood recycling.

Засади розвитку участі митних та інших посередників у реалізації експортної стратегії України

Засади розвитку участі митних та інших посередників у реалізації експортної стратегії України

Trade Policy Options of Ukraine: East or West

textabstractThe dissolution of the Soviet Union in 1991 has led to the independence of fifteen new states. Twelve of these, including Ukraine, joined the Commonwealth of Independent States (CIS) whose goal was to form a common economic space with free movement of goods, labor and capital. Twenty five years later, CIS countries still face important trade policy choices, the implementation of which is conditional on the quality of governance and infrastructure. The evaluation of these policy choices gains therefore considerable importance. Using an unbalanced panel data set of bilateral export flows among 159 economies, we estimate the gravity model of trade using alternative estimation approaches that account for zeros in trade: Heckman, Poisson pseudo-maximum likelihood and Martin-Pham Tobit. Our empirical results show robust outcomes and advocate importance of WTO membership, governance and effective distance (corrected for infrastructure). Using scenario analyses we assess counterfactuals for Ukraine and find, for example, that improved infrastructure would on average lead to a 22% increase in Ukrainian exports while improved governance would, ceteris paribus, almost double its trade. Most of these changes originate from the intensive margin of trade.

Модель "відстаючого зростання": економічні фактори та наслідки для України

It is concluded that Ukraine's economy is dominated by the commodity model, within which it specializes in the production of low value added goods. Because of this Ukraine's economy is highly dependent on the fluctuations of the world prices for this country's export commodities. The author proves that, over the last 20 years, all the three economic, financial and FX crises observed in Ukraine (1998-1999, 2008-2009, and 2014-2015) took place against the background of the decline of the world prices for Ukrainian export items. And, vice versa, the revivals of the global conjuncture for raw materials were associated in Ukraine with economic growth, balanced budget and strong foreign exchange market position. In this article, the world commodity market conjuncture is analyzed through the prices for steel, wheat, sunflower oil and nitrogen fertilizers exported by Ukraine. It is stated that the causes of economic, financial and FX crises can vary significantly depending on the type of economy: commodity or industrial one, small or big one, and having or not a free access to international financial markets. It is concluded that, in small commodity based economies, financial, monetary and FX misbalances are not always the initial point of a crisis. In a number of cases they only play a secondary role in the crisis origination. It is stressed that the phases of economic cycle in Ukraine as well as the stance of its finance, budget and exchange rate of the Hryvnia are to a great extent determined by the commodity nature of national production. Meanwhile the high volatility of the latter could be explained by a long-term technological decline. Ukraine is featuring a lagging growth model according to which national GDP rates are lower than those in the most countries with emerging markets. As a result, Ukraine has been helplessly slipping down towards the commodity based periphery of the global economy although, in formal terms, its GDP dynamics may remain positive. It is underscored that a systematic eradication of the above mentioned drawbacks would involve a technological revival, and the development of the manufacturing sector with its shifting to the production of high value added goods.

Економіка України: ключові проблеми і перспективи

The article examines the key issues of the development of Ukraine's economy in the current year of 2016 including in terms of the impact of expected changes in the global economic environment. Together, they are those that lead to restrictions in external demand for Ukrainian exports. Under such conditions, it will be impossible to revive economic growth at the expense of the exogenous factors (without changes in the conditions of foreign trade and increase in the competitiveness of Ukrainian produce) as well as achieve the officially declared 2% GDP growth. This conclusion is based on the fact that with a harsh domestic policy of austerity and shrinking money supply (which is planned for 2016), the possibility of the rise in domestic demand is limited. In accordance with the above challenges that hinder the economic recovery in 2016, the article justifies the necessary changes in economic policy to overcome the dependence on external borrowing, to demonopolize the banking sector and expand the availability of credit, especially for small and medium businesses, to raise lending capacity for the implementation of infrastructural projects, and to support the development institutions. Outlined proposals for changes in Ukraine's export policy, especially concerning the need to expand quotas for trade with EU countries. The author defines conditions that can help succeed in the competition for the realization of Marshall Plan for Ukraine as a tool to modernize this country's economy. Attention is given to how the resources inherent in the socio-cultural components of the people's behavior can be used for economic modernization.

Експорт агропродовольчих товарів у ЄС: перспективи і завдання

Analysis of dynamics and structure of agri-food exports to the EU has shown that the growth rate of agri-food export is unstable due to high share of raw agricultural goods with high volatility of prices and demand on the world market. Based on the analysis of import share capacity of particular EU markets and EU customs regulations, the author estimates the capabilities to increase exports within and over the tariff quotes. The article provides a list of domestically produced goods that can become competitive on the EU markets when exported in quantities over the tariff quota limits, which includes honey, concentrated juices, processed goods from malt and starch, processed starch, ethanol, sweetcorn, and processed goods from grains. Import tariffs for the quantities over the tariff quota for all other goods, especially livestock products, are de facto prohibitive. Therefore, the long-time priority is to raise the level of tariff quotas. Analysis of the outlooks of the EU dairy products balance shows that significant entrance of domestic producers to the EU markets would face a lot of problems even after the modernization of the production process in accordance with the EU standards. Soybeans, oilseeds meal, casein, honey, fruit juices, nuts, willow, pasta and confectionery are the only leading goods of Ukrainian exports to the EU, whose export volumes can be actually increased. The probability of increase in exports of corn, wheat, and sunflower seeds and oil is low due to the unfavorable mid-term outlook of EU markets. The author defines various measures to be undertaken by executive authorities, producers' associations and producers in order to ensure the competitiveness of domestically produced agri-food goods on the EU markets.

Девальваційні шоки та їх наслідки для економіки України

The article investigates the impact of devaluation shocks on Ukraine's economy. The author argues that the mechanism of exchange rate effect is mixed, with positive and negative effects of exchange rate fluctuations affecting the competitiveness of the internal and external sectors in different directions. The author considers three waves of devaluation of the hryvnia (1998-1999, 2008-2009, and 2014-2015) and analyzed their effects. It is shown that hryvnia devaluation in 1998-1999 had the largest effect, which was initially manifested in the growth of exports in 2000, being its peak observed in 2001-2004. The share of imports in the trade balance did not significantly decrease, because Ukraine had a high degree of energy dependence and needed a lot of components for domestic production. However the high prices on international commodity markets contributed to the formation of the raw-material character of Ukraine's exports. The second wave of devaluation (2008-2009) caused by the global financial crisis did not have a large positive impact on Ukraine's trade balance, as the international markets saw a decline in global demand for goods and services. The depreciation of the hryvnia had a negative impact on domestic output, because the total negative effect of currency devaluation considerably affected the sectors, which were oriented to the domestic market and had a significant share of imported raw materials and energy in their cost structure. The third wave of hryvnia devaluation (2014-2015) to some extent contributed to the reduction of the negative trade balance, but the full effect of the hryvnia depreciation is difficult to assess because the balance indicators were calculated less the lost territories. The raw material orientation of Ukrainian exports contributed to a hypertrophy of the domestic economy and the emergence of Dutch disease, which showed itself in the sector of semi-finished goods. As a result, there took place a substitution of more complex items with more simple ones having lower added value. Along with the impact of devaluation shocks on Ukraine's trade balance, the author examines the relationship between devaluation of the hryvnia, inflation and living standards. It is shown that, between inflation and devaluation, there is a close relationship, which is explained by the technological structure of Ukraine's import dependent economy. It is concluded that high inflation and devaluation of the hryvnia make no contribution to the stability of money circulation in Ukraine and lead to lower living standards. The author recommends diversifying this country's export structure towards a significant increase in the share of high tech products and services.

Зовнішня торгівля України: сучасні масштаби, структура і тенденції

The article is sanctified to research of modern scales, regional pattern and basic tendencies in foreign trade of Ukraine. The study of the state of the Ukrainian export and import for the last five years allowed to educe not only key problems (considerable reduction of scales of foreign trade activity, considerable negative balance of foreign trade balance) but also positive changes that found a reflection foremost in the change of regional and commodity pattern.

ESSENCE OF CONSTRUCTION SERVICES AS AN OBJECT OF INTERNATIONAL TRADE

The article stipulates that the service industry is becoming more and more significant part of the gross national product due to increasing production levels, changes in its structure and the development of science and technology. The main theoretical approaches to defining services as an economic category are studied; the conclusion is drawn that service is a process, activity or set of actions aimed at meeting the needs of the customer. The basic characteristic features of the international construction market are studied, including the availability of sustainable demand and supply, significant volume and frequency of transactions and the activities of specialized companies - suppliers of construction services as a special commodity. The existing classification of construction services (Stanton and Dzhadts, WTO, UN, Shelp) is examined. It is determined that the latter classification emphasizes the specifics of construction services, their capital intensity, connection with investment resources on the one hand, and a close relationship with trade, both of services and material objects, as well as technology trade, on the other. A conclusion is made that the current processes of economic globalization contribute to the fact that international trade in services is increasingly showing trends that allow to expand the geographical coverage of world markets and increase the complexity of meeting the needs of customers. This provides grounds for further research of the current state of construction market to determine the place of Ukrainian exporters in it.