Ukrainian Exports Research Articles

ПЕРСПЕКТИВИ ТОРГОВЕЛЬНО-ЕКОНОМІЧНОЇ СПІВПРАЦІ УКРАЇНИ З ДЕРЖАВАМИ БЛИЗЬКОГО СХОДУ

The article identifies prospects for trade and economic cooperation between Ukraine and the Middle East. It is shown that in the second quarter of the XXI century, the tendency to deepen international cooperation in order to effectively use a country's export and production potential is emerging. It is determined that the state's trade policy is primarily a manifestation of political and economic instruments of its foreign economic relations, so Ukraine should actively enter into liberalization of bilateral and multilateral agreements, including with the Middle East. It is substantiated that the formation of effective relations with that region's countries takes place in a competitive environment, as about half of the exports of the Middle East are to developed countries in Europe and Asia. The dynamics of the main indicators of foreign trade and the geographical structure of Ukraine's exports on average in the 2016–2020 period are analyzed. The tendencies of dynamics of volumes and structure of export / import of Ukraine to the countries of the Middle East for this period are assessed. It is concluded that in the medium term, trade liberalization has significant potential to increase Egyptian and Turkish imports to Ukraine, as well as Ukrainian exports to Egypt, Turkey and the United Arab Emirates. The necessity to emphasize the substantiation of the program of long-term economic and scientific-technical cooperation is shown. It is also necessary to study the possibilities of free trade zones, preferential regimes of industrial zones, intermediary opportunities and potential of some influential Arab countries to promote and consolidate in other markets, as well as promising forms of promoting most traditional Ukrainian goods in the Middle East.

ЗОВНІШНЬОТОРГОВЕЛЬНІ ВІДНОСИНИ КИТАЮ ТА УКРАЇНИ В ГАЛУЗІ ВАЖКОЇ ТА ХІМІЧНОЇ ПРОМИСЛОВОСТІ

The article examines the peculiarities of foreign trade relations between China and Ukraine in the field of heavy and chemical industries. The current state of peculiarities of trade cooperation between China and Ukraine is revealed. Necessary conditions for intensification of bilateral foreign trade relations between Ukraine and China, in particular in the field of heavy and chemical industries, have been identified. The volumes of trade and investments between Ukraine and the People's Republic of China are studied. The priority goals for the development of cooperation are considered. The problematic aspects of the foreign trade relations between China and Ukraine in the field of heavy and chemical industries are highlighted. Possible prospects for the development of bilateral relations between the countries are considered. In order to determine the main factors influencing the development of partnerships in the trade and economic sphere between Ukraine and China in the period up to 2030 inclusive, a SWOT analysis (analysis of strengths and weaknesses, opportunities and threats) was conducted. Based on this analysis, external opportunities and threats to strategic cooperation between countries, as well as their strengths and weaknesses, were identified. It is determined that trade between Ukraine and China is extremely important. The structure of Ukrainian exports to China is dominated by supplies of ore, slag and ash; grains; fats and oils; food waste. The structure of imports from China is dominated by the supply of electric machines; boilers, machines; plastics, polymeric materials; means of land transport other than rail. The directions of development of foreign trade relations of China and Ukraine in the field of heavy and chemical industry are determined. Important factors that influence the development of heavy and chemical industries are described. It is determined that in order to forecast the prospects of trade relations in the field of heavy and chemical industries, it is necessary, first of all, to determine the main factors influencing the size of the market, the importance of their impact and statistics of previous years.

Economic productivity and competitiveness of Ukrainian exports due to the global challenges

Productivity and economic growth are key factors to maintain and improve the competitiveness of nations in the global market. The paper analyzes the prospects for the competitiveness of Ukrainian exports in the terms of pandemic circumstances and post-pandemic recovery of the global economy. The prospects for strengthening the competitiveness of Ukraine’s economy evaluating based on the modified approach for assessing the revealed comparative advantage. The dynamics and structure of major industries exports were estimating. The research result proved that the growth of innovative products in the iron and steel industry increases its competitiveness in the world market. The established reduction of the identified comparative advantages index for the main exports positions reflects the presence of structural and technological lags in the modern structure of the national economy and requires economic policy measures aimed at long-term action. Respectively, the main goals of contemporary national economic policy aimed at promoting the export competitiveness of Ukrainian products (goods & services) have to be the stimulating of R&D, infrastructure modernization and capital deepening.

Сучасні реалії та перспективи розвитку зовнішньої торгівлі України

The article discusses the current situation of the foreign economic activity of Ukraine. The main problems of export-import relations of the State are determined. The export potential is studied and dynamics of foreign trade are analyzed. The advantages of the agrarian sector and machine-building in the foreign policy of the country are determined. The practical inclusion of the country in the world trade space through the combination of economic and administrative methods of regulating the country’s foreign economic activity is analyzed. It is proved that Ukraine’s international activities play an important role in forming the budget and GDP of the State. The raw material orientation of Ukrainian exports is studied and the vulnerability of the country’s competitive positions in foreign markets is determined. The dynamics of commodity and geographical structures of the export potential of the State is analyzed. The greatest demand of goods by domestic producers from Kyiv, Dnipropetrovsk, Donetsk and Zaporizhzhia regions is determined. The priorities for the development of foreign economic relations between Ukraine and the European Union are formulated. The main negative factors influencing the development of the country’s foreign economic activity are summarized: insufficient level of product competitiveness; non-compliance with international quality and safety standards; low level of processing of exported products. Attention is paid to supporting the interests of national producers, increasing the export potential of the national product, eliminating the effect of import substitution, especially: fuel, harmful and poor-quality products and consumer goods. The necessity of improvement of marketing researches, formation of a simplified system of customs-tariff regulation, optimal management, accounting and control structure for the formation of effective information support in the sphere of export-import relations of Ukrainian enterprises are substantiated.

Географічна структура експорту України в умовах зростання ризиків невизначеності розвитку глобальної економіки

The article is aimed at analyzing changes in the geographical structure of Ukrainian exports in the context of increasing risks of uncertainty in the development of the global economy. The current global economy is a system where uncertainty has become one of its most important characteristics, requiring each country to find the optimal structure of foreign trade. The geographical structure of Ukraine’s exports is determined by its economic, geographical and transport-geographical position, specialization of the economy, which constitutes the basis of its export potential, established historically formed cooperation relations, position in the established markets of products sales, etc. The need to find the optimal geographical structure of Ukrainian foreign trade is caused by a negative balance of Ukraine’s trade balance; continuation of Russia’s military and trade aggression; lack of positive changes in the commodity structure of Ukrainian exports to the EU countries; increasing risks of uncertainty in the global economy as a result of the COVID-19 pandemic; decrease in revenues from export operations due to changes in the global market conditions. Currently, the markets of Asia and the Middle East are considered to be promising vectors of expansion of the geography of Ukrainian exports. The combination of economic and political aspects of foreign economic policy in expanding or reorienting the geographical structure of exports requires the search not only for the most profitable, but also, at the same time, long-term development prospects. Rising risks of global development uncertainty require an ongoing update of the sales expansion strategy. The condition for potential economic efficiency growth is not a simple increase in the number of trading partners, but a clearly defined direction of changes in the export policy of the State. Precisely these issues will be concern of the further research.

ТЕНДЕНЦІЇ РОЗВИТКУ ТОРГОВЕЛЬНО-ЕКОНОМІЧНИХ ЗВ’ЯЗКІВ УКРАЇНИ З КРАЇНАМИ СВІТУ

The article examines the indicators of foreign trade of individual countries of the world; substantiates the directions of reducing the dependence of national exports on commodity prices on world markets; clarifies the development trends of trade and economic relations of Ukraine with countries of the world; examines the direction of expanding the national export potential. Object of research – the process of economic security in international relations. Purpose of study – improving efficiency of the mechanism of activization of development of the trade and economic relations of Ukraine with the countries of the world. Methods of research – method of abstracting, analysis and synthesis, induction and deduction, system approach. One of the main prerequisites for the effective functioning of the national economy, the key to its dynamic development is the expansion of export potential. Accordingly, the strategic objective is the largescale growth of Ukraine’s presence in foreign markets. The partial or complete loss of traditional markets reinforces the need to find effective solutions for the development of exports of Ukrainian products. The presence of Ukraine in the global production network has increased significantly over the past ten years, but still remains insufficient. For the active inclusion in the global value chains, it is necessary to change the commodity structure of Ukrainian exports and switch to the production of medium and high-tech products. Forecast assumptions about the object of study – improvement of the mechanism of ensuring economic security in international relations. KEYWORDS: TRADE AND ECONOMIC RELATIONS, EXPORT POTENTIAL, GLOBAL VALUE CHAINS, COMMODITY STRUCTURE OF UKRAINIAN EXPORTS, EXPORT DIVERSIFICATION, FREE TRADE ZONE, EXPORT STRATEGY OF UKRAINE

ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ ЗОВНІШНЬОЕКОНОМІЧНИХ ВІДНОСИН УКРАЇНИ ТА КРАЇН АФРИКИ (НА ПРИКЛАДІ ЄГИПТУ)

The article is dedicated to foreign economic relation Ukraine and African State. For example was took Egypt. There are some scientific publication about Ukrainian and African state cooperation. These publications analyze cooperation Ukraine and state of Northern Africa. At the article was given analyze of foreign trade between Ukraine and Africa state to 2014. The article analyzes foreign trade relation Ukraine and Egypt from 2016. At the article the law of foreign relation Ukraine and Egypt. Now a day, there are 31 laws on government and ministry level between Ukraine and Egypt. Goods structure of foreign goods and service trade Ukraine and Egypt was analyzed. The structure of Ukrainian export is very different. The main article of Ukrainian export were mineral fuel (24.08% of Ukrainian export), corn (20.58%), ferrous metals (9.08%), woods (9.01%), wheeled vehicles (6.5%), fats (6.13%), paper and cardboard (1.53%). Ukrainian import item are fruits and nuts (41.38% of Ukrainian import from Egypt), vegetable (39.6%), wear (5.72%), machines (2.3%), carpets (1.6%), electronic equipment (1.3%), pharmaceutical products (1.27%). As we see, the foreign trade between Ukraine and Egypt doesn’t have strategic character. The export and import has resource character. Ukraine has net-import, part of Ukraine of world service import at 1.9% and part of world export is 1.1%. The part of Africa state in Ukrainian service import is 3.7%, and part of Ukrainian export to African region is only 0.6%. The leader of export service to Ukraine is Egypt, Tunis, Algeria. Touristic service was given by Egypt and Tunis, service of aircraft. Finance service was given by Algeria. The leader of service export was Egypt. It was busyness service, transport service, telecommunication, and computer and information service, payment of intellect service. At the article investment activity Ukraine and Egypt was analyzed. Ukrainian investments are direct to tourism (54.4%), building (16.7%), service (10.6%), communication and information technology (5.3%), industry (5.2%), finance (4.7%), and agriculture (3%). Also Ukrainian company gets offers to invest to manufacture, aluminum production, aircraft industry, pharmaceutical industry, petrochemistry. At the article conclusion about cooperation Ukraine and Egypt. At the article investment activity Ukraine and Egypt was analyzed.

The place and role of corporations in domestic machine building

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.

ТОРГОВЕЛЬНА ВІЙНА МІЖ США І КНР: ВПЛИВ НА СВІТОВУ ЕКОНОМІКУ ТА НАСЛІДКИ ДЛЯ УКРАЇНИ

The article analyzes the economic causes and consequences of the trade and economic war between the USA and PRC. The chronology of the introduction of mutual trade barriers by these countries and a temporary compromise in the form of the first round of the Trade Agreement are considered. Based on the systematisation of estimates of the effects of additional trade tariffs, a contradictory (albeit asymmetric) effect on economic growth, investment and employment in these countries is shown, as well as a predicted increase in the overall negative effect for a significant number of countries in the medium term. The main scenarios of the possible development of trade and economic relations between the United States and China are considered. The authors note that the trade war provoked the effects of trade reorientation and the emergence of beneficiaries among third countries, but, due to the transfer mechanism of global value chains, the losses to the world economy can largely overlap the overall short-term gain from such trade substitution. It has been shown that any trade relocation takes time and has additional costs. Alternative suppliers may not have the same transactional supply efficiency. Particular attention is paid to the impact of the trade and economic war between the USA and PRC on the Ukrainian economy. It is substantiated that Ukraine has also acquired certain export opportunities due to a decrease in the American share in the Chinese market. So, the extremely dynamic growth of Ukrainian exports to China, which has been observed in recent years, testifies to the above effect of reorientation and replacement of trade flows. But, at the same time, the deterioration of world economic dynamics as a result of the trade and economic war increases the overall risks for the Ukrainian economy, especially in the medium term. In the context of the current economic policy of Ukraine, the issue of maximizing the utilization of industrial export opportunities to China and expanding the export of goods with higher added value remains important.

An Assessment of the Development Potential of Manufacturing Industries in Ukraine

To ensure the competitiveness in world markets in the context of deepening globalization processes, Ukraine needs to adjust its own raw material base, which will qualitatively change the structure of Ukrainian exports from raw materials to goods with a high share of value added. The purpose of the article is to assess the development potential of chemical, textile, agro-processing and woodworking industries of Ukraine on the basis of import substitution and export orientation, and to substantiate organizational and economic forms of its practical implementation. The authors propose an interpretation of the term “industrial system development potential”. The peculiarities of operation of the manufacturing industry in Ukraine are determined on the basis of a comparative assessment of the density of cross-sectoral links, the cost and innovation level of domestic and European chemical, textile, woodworking and agro-processing industries. Based on the results of the analysis of the technological profile, the level of capacity utilization and performance indicators of the largest chemical enterprises of Ukraine, the strategic guidelines for the development of promising chemical industries are substantiated and organizational and economic forms of realizing their potential are proposed, in particular in the Western region. Proposals for ensuring competitive conditions for participants in the domestic market of light industry products are provided, the need for simplified regulatory procedures and investment incentives to ensure the development of domestic light industry enterprises is substantiated. An organizational mechanism for restoring the raw material base of textile and other industries is developed. The regions of Ukraine are grouped according to the potential of timber harvesting and industrial processing. The perspective directions for the woodworking industry development in the administrative-territorial units of the Western region are defined (by production type), and the basic strategies of their realization, focused on the internal and external markets, are outlined. A comprehensive review of operation problems of agro-processing productions in Ukraine is made through the prism of their resourcing from a regional perspective. The key problems are outlined and the prospects for the development of grain, meat and milk productions are substantiated, based on current and forecasted trends in the respective commodity markets. Organizational forms for realization of the development potential of agro-processing productions in Ukraine and mechanisms for their institutional support are proposed.

EXPORT DEVELOPMENT OF UKRAINE’S AGRICULTURAL FOOD PRODUCTS TO ASIAN COUNTRIES

Introduction. When choosing an export market, it is important to consider all possible options to select the most export-friendly country. The countries of South and East Asia are the most heterogeneous in socio-economic terms. The countries of this region include Japan, South Korea, Singapore and Taiwan, they are capitalist countries with diversified economies. Mongolia has only embarked on a path of economic and political reform after 70 years of totalitarian rule, and North Korea is now a unique state that still builds communism based on a command system in the economy and a totalitarian regime in politics. The purpose of the study is to study the agri-food market in Asia and prospects of its development for producers and exporters of food products from Ukraine. The study was conducted using the following methods: structural and functional, comparison, abstract-logical. Results. The reasons for the search for new markets by Ukrainian exporters are identified. The general situation on the meat and dairy market of Asian countries, the level of product consumption and trends in consumer choice are considered. Potential countries for export were identified, and indicators of imports of certain products by countries were studied. The place of the countries in the world food market, tendencies of development of trade for the last years is outlined. The main exporters to certain countries, as well as sales channels have been studied. The study identified a number of potential countries for the export of meat and dairy products from Ukraine. The current state of retail trade in the target countries was considered in detail, as well as the main players in the market. For the first time, recommendations for exporters to enter the Asian market were identified and provided. Conclusions. Further research can be carried out to identify the main trends in the choice of exporters by buyers from the Asian region and development opportunities for Ukrainian exporters in the target region. Prospects for ongoing research can be development of standards and guides for expention of Ukrainian agri-food exports to Asian countries. Key words: market, export tendencies, agri-food products, development.

PROSPECTS FOR THE EXPORT DEVELOPMENT OF UKRAINE'S MEAT AND DIARY PRODUCTS TO CHINA

Introduction. Currently, food exports from Ukraine are in transition. The loss of the Russian market has made it necessary for Ukrainian exporters to find new markets, this search cannot be stopped due to the development of the food industry and food producers. Another reason for finding new markets is the decline in demand for certain food and low wages, which leads to lower profits for processors in the domestic market. The purpose of the research is to study the Chinese meat and dairy market and prospects for its development for food producers and exporters from Ukraine. In conducting research, a set of the following methods and techniques of scientific knowledge was used: abstract-logical, monographic and economic statistics, methods of analysis and synthesis (in assessing factors for development market processes), the method of scientific comparison. Results. The article considers the current situation on the market of the Republic of China in the production, import and consumption of meat and dairy products. The import indicators of the most popular product categories, namely the value and quantitative indicators of 2019, have been studied. The largest exporters of all categories of products considered in the article were identified, as well as last year's production figures and forecasts for future years. The main trends in industrial development were identified. The export system of products to the Republic of China was described and explained with the help of structural-functional method, properties and characteristics of dairy and meat products import were determined by comparison, abstract-logical method allowed to generalize and formulate conclusions and tips for entering the PRC market. Conclusions. The study identified the most popular products of the meat and dairy industry, and explained their distribution. The current state of the food industry in Ukraine is determined, and recommendations for exporters on the choice of export products and preparation for export are provided. Development of standards and guides for the export development of Ukraine’s meat and dairy products to China would be in great value. Keywords: market, export, agri-food products, meat and dairy industry, development.

The results of implementation of european requirements in management of transfer pricing audit (experience of Ukraine)

Since 2017 four of fifteen steps of the BEPS plan (base erosion and profit shifting) have been introduced in Ukraine to resist various areas of aggressive tax planning. The implementation of the BEPS plan is primarily made through frame working a transfer pricing control system in Ukraine, which aims to reduce illegal tax sheltering through foreign economic transactions with interdependent or interested parties as well as through transactions with contractors that are registered or make business in low-tax jurisdictions. The purpose of this study is to evaluate the results of implementation of European requirements in the system of audit of foreign economic activity in Ukraine. The study is based on data from the State Statistics Committee of Ukraine, the State Fiscal Service of Ukraine for 2015-2019.The article identifies the amounts of Ukrainian exports (imports) to (from) low-tax jurisdictions, analyzes the controlled exports and imports by geographical segment. The study presents evidence of the use of transfer pricing mechanisms by Ukrainian companies to optimize income taxation, which is contrary to the interests of the state. Therefore, a special need consists in improvement of the state control over operations of the foreign economic activity. The changes and current trends in foreign economic operations during the implementation of transfer pricing controls since 2013 in accordance with the BEPS plan were examined. This study proves that immediately after expanding the list of low tax jurisdictions, there has been a significant fall in the volume of controlled exports and imports, which we regard as a loss of cost-effectiveness of trade operations through low tax jurisdictions due to increased controls and enlarged list of territories, transactions through which are under strict control.

Trade missions in the system of Ukrainian economic diplomacy

The article is devoted to the study of trade missions as a tool of economic diplomacy. The purpose of the article is to study the Ukrainian practice of using the mechanism of trade missions abroad and to develop proposals for improving the system of trade and economic representation of the country abroad.The paper presents global examples of the implementation of economic diplomacy, as well as models that can be borrowed from Ukraine. The authors give examples not only of forms of trade representations, but also of coordination methods of activity of such foreign bodies of foreign relations. The relevance of the study is due to a number of reasons, including: increased competition from global markets, as well as the need to expand opportunities of Ukrainian exports after the forced abandonment of the Russian market in 2013-2014. Trade offices are an effective form of trade presence in foreign markets thus ensuring not only the development of the national economy, but also protecting the interests of business entities. Given that currently the institution of trade missions in Ukraine does not have a mechanism that would meet modern needs, there is a need to explore appropriate models of developed countries to adapt the system of public administration in Ukraine to the challenges of international economic relations.Particular attention was paid to the evolution of the system of trade and economic missions (TEM) of Ukraine. The authors assessed the consequences of the liquidation of TEM in 2010 and the introduction of new forms of representations of Ukraine abroad to ensure national economic interests and the implementation of economic diplomacy, as well as the feasibility of such changes. It is established that the Ukrainian model of economic diplomacy needs significant reforms in order to effectively ensure the function of representation in the economic sphere outside the country. Having studied the similar experience of foreign countries, the authors offer a number of successful cases for borrowing these approaches in Ukrainian practice.

Шляхи вирішення проблем управління вантажопотоками в транспортних системах України

Збільшення ролі вантажних перевезень в обслуговуванні міжнародного вантажообігу, підсилення ролі експедиційної діяльності у формуванні попиту та пропозиції докорінно змінило концепції транспортного ринку. З іншої сторони, створення єдиної міжнародної транспортно-логістичної системи та географічне положення транспортного простору України в якості міжнародних транспортних коридорів вимагає окремого аналізу управління роботи транспортних вузлів і митних систем, забезпечення координації та взаємодії транспорту і митних пунктів пропуску, результативності досягнень науково-технічного прогресу на транспорті і митній справі. Процес формування міжнародної системи перевезень не завершився. Більш того, остаточне рішення ряду проблем міжнародних перевезень та освоєння нових технологій знайде своє втілення лише на межі першої чверті XXI сторіччя.

Analysis and forecasting of Ukrainian agrarian exports to the EU countries

Purpose. The purpose of the paper is to study the state, perspective directions of Ukrainian exports of agricultural products and the introduction of effective forecasting using the method of mathematical modeling of a continuous system of aperiodic components. Methodology / approach. In the process of research, the fundamental provisions of modern economic science were used in relation to the groups of factors influencing the resulting indicators of export, foreign trade trends, methods of statistical analysis to assess the weight of factors influencing the resulting function, as well as modern mathematical methods for forecasting of agrarian exports were implemented. Results. The application of the developed mathematical model and the algorithm based on it, allowed to study the situation with the export of Ukrainian agricultural products to the EU, to identify trends specific to individual countries and the EU market as a whole, to assess the opportunities and prospects of niche markets, expansion nomenclature of export goods. Prognoses were given both on the export prospects of individual goods, product groups, and on the volume of deliveries to the EU. The use of factor analysis for forecasting of export deliveries allowed us to assess the impact of each of the factors and limit their amount. Originality / scientific novelty. For the first time, the method of mathematical modeling of a continuous system based on changes in its aperiodic components was used for efficient and relevant forecasting of agrarian export volumes. Even the stages of application of this method, in particular, the analysis and prognoses for individual items of the nomenclature of export goods, for individual countries – importers make it possible to represent the situation with agrarian exports more accurately and forecast future supplies. Practical value / importance. The proposed mathematical approach for market analysis and forecasting of markets can be used by both market regulators and producers and exporters of agricultural products. These polynomial equations for analysis and prognostication for individual product groups can be directly used in practice.

Time-varying relationship between Ukrainian corn and world crude oil prices

Corn belongs to the most important feed and industrial grains in the world being utilized for bioethanol production. Ukraine does not produce biofuels and does not pursue an active renewable energy policy. However, due to significant share of exports, corn prices in Ukraine can be shaped under the influence of biofuel policies pursued by developed countries, as well as under the influence of world energy markets. Therefore, the aim of the paper is to investigate the mechanisms linking Ukrainian export corn prices with Brent oil prices, as well as to quantitatively assess the nature of this relationship. We were especially interested in possible time-varying relationship between the prices. The price analysis was carried out on the basis of monthly data for the period 2001-2020 with the use of rolling correlation technique and rolling causality tests. The results of this research indicate on time-varying co-movements of Ukrainian corn and Brent crude oil prices. The strongest positive correlations and significant bidirectional causality were observed in 2007-2011. However, in most of sub-periods there were no significant relationships between these prices. Among factors strengthening the price linkages are the low corn-oil price ratios, dynamic increase of corn utilized for ethanol production and depletion of the world corn stocks. The conducted analysis confirmed that changes in biofuel demand in other countries can affect Ukrainian corn market due to horizontal integration of grain markets worldwide. Biofuel policy reforms in the EU aiming at decreasing mandatory blending of conventional biofuels in favor of advanced biofuels can lead to decrease in demand for corn in Ukraine after 2021, leading, in turn, to further weakening of linkage between corn and crude oil prices.

State industrial policy in conditions European integration of Ukraine

Since the beginning of 2020, there have been crisis phenomena around the world due to the global slowdown in economic growth and the introduction of quarantine due to the coronavirus pandemic. In this situation, the most vulnerable are developing countries with a small margin of safety, which, unfortunately, also applies to Ukraine, whose economy is open and highly dependent on external markets.
 Due to the slowdown in the growth of the global economy, the situation in one of the main export industries of Ukraine – industry is deteriorating first of all. The European Union has become one of the important export markets for Ukraine’s industrial products in recent years, which has raised the issue of shaping a relevant state industrial policy in today’s challenging environment. The purpose of the article is to determine the directions of formation and implementation of state industrial policy in the conditions of European integration of Ukraine in modern conditions. In 2020, due to the economic crisis and the pandemic of the coronavirus, the Ukrainian industry may lose even more due to low demand for ferrous metals in world markets, including in EU countries.
 The Agreement on Conformity Assessment and Acceptance of Industrial Products is a way of eliminating technical barriers to trade between Ukraine and the EU. The Agreement on Conformity Assessment and Acceptance of Industrial Products is a type of mutual recognition agreement that requires a partner country to align its legislation, practices and infrastructure with EU rules.It is envisaged that in the sectors covered by this Agreement, Ukrainian exporters will be able to label their products with the CE mark and to sell them freely on the EU market without additional EU certification. Potentially, the Agreement on Conformity Assessment and Acceptance of Industrial Products could cover up to a fifth of Ukraine’s exports to the EU, notably mechanical engineering products. The formation and implementation of state industrial policy in the conditions of European integration of Ukraine should take place using the following algorithm:1. Study of the new EU Regulation 2019/1020 of 20.06.2019 on market surveillance and conformity of products and elaboration of relevant amendments to the legislation of Ukraine.2. Concentration of the function of legal coordination of draft regulatory acts (including technical regulations) aimed at implementing the Association Agreement and preparation for the Agreement on Conformity Assessment and Acceptance of Industrial Products in one state instance, equipped with specialized personnel with adequate knowledge of EU law and languages.3. Strengthening the requirements for the accreditation and oversight process for accredited bodies, as well as the process of designating and monitoring conformity assessment bodies to ensure that their technical competence is adequate and to prevent fraud and the use of fraudulent practices.4. In the absence of a rapid prospect of concluding an Agreement on Conformity Assessment and Acceptance of Industrial Products, the harmonization of procedures and requirements that are too burdensome for exporters and importers, first and foremost.5. Paying particular attention to capacity building of state market surveillance authorities.6. Raising awareness of business entities and enhancing the role of business associations in raising such awareness.7. Increasing the EU’s interest in providing Ukraine with effective technical assistance for the development of legislation and the proper functioning of quality infrastructure and market surveillance authorities.
 
 Introduce the position of Deputy Prime Minister for Industry and launch support programs for the real economy.
 
 Thus, Ukraine’s further integration with the European Union is largely linked to the formulation and implementation of relevant industrial policy, which should be to continue reforming all sectors of the economy, in particular, to modernize the industrial complex. And the signing of the Agreement on Conformity Assessment and Acceptance of Industrial Products in the three priority sectors («industrial visa waiver») in the medium term should become one of the main foreign economic priorities of Ukraine’s European integration in the face of the current challenges of today.

ANALYSIS OF INSTITUTIONAL FACTORS AS PART OF THE COMPONENT OF ECONOMIC FREEDOM AS A BACKGROUND OF IMPROVEMENT OF STRUCTURAL PROPORTIONS IN THE CONTEXT OF IMPROVING GOVERNANCE

Purpose – the main purpose of the study is to analyze the institutional factors that are usually considered as components of economic freedom, as well as to assess the level of economic freedom as a prerequisite for improving structural proportions and stimulating the investment process in an economy with excess raw materials sector (such as Ukraine). Research methodology – the methodological basis is a system of complementary mathematical, general scientific and special methods, in particular system-structural comparison of retrospective, diagnostics and mathematical methods of studying possible dependence, general methods of analysis and synthesis, etc. Findings – the main result of the study is that increasing the degree of economic freedom in Ukraine contributes to structural shifts in favour of non-resource exports. Research limitations – our assessment methodology does not take into account the specifics of most European countries and is mainly aimed at countries of Eastern Europe so far. Practical implications – our proposed methodology for assessing the dependence of structural changes in a country’s exports on the economic freedom index IEF can be used in the practice of public administration in countries of such countries as Ukraine and others. Originality/Value – a proposed method for estimating the dependence of structural changes in Ukrainian exports on the IEF Index of Economic Freedom.

FORMATION OF INNOVATIVE ECONOMY OF UKRAINE IN THE CONTEXT OF EUROPEAN UNION ASSOCIATION AGREEMENT

This study is devoted to the problem of the formation of Ukraine’s innovative economy in the context of a European Union Association Agreement. The main objective of the article is to study the consequences of the signing of Association Agreements between Ukraine and the EU, to identify the benefits and problems, and to propose promising directions of such cooperation in the context of the formation of the innovative economy of Ukraine. The research methodology is based on foreign and Ukrainian scientific literature and statistical data analysis (within the last five years) to show collaboration between the EU and Ukraine. The priority directions of such collaboration areas are such as the introduction of the all-embracing implementation strategy, sponsorship system’s creation of Ukrainian exports to the EU, a stimulation of development of innovations within the framework of realization of the international programs, the introduction of certification norms and standardization of products in Ukraine and others. The results of the study can be useful for scholars, ministries, institutions that are engaged in this range of issues.