Today, the woodworking industry is a strategically promising export-oriented segment of the national economy of Ukraine, as well as an important link for its integration into the global value chains. The presence of a significant raw material base and the prospects for expanding of product markets are the objective basis for the further dynamic development of domestic woodworking industry. The purpose of the article is to determine the production and export potential for the development of woodworking industry in the Western regions of Ukraine and to substantiate the organizational and economic forms of its practical realization. According to the results of the assessments, it is established that the vast majority of Western regions of Ukraine, especially Lviv, Ivano-Frankivsk, Volyn and Rivne, have significant potential for further dynamic development of the woodworking industry. The processing (wooden furniture, windows, doors, floor) and production of paper and paper products are defined as the most promising industries in the region from the point of view of import substitution (i.e. orientation towards meeting demands on the domestic market). At the same time, from the point of view of increasing the presence of wood products of Ukrainian producers on the foreign markets, the production of alternative finishing materials for furniture, the production of energy-saving products, as well as the production of plywood and wood pellets are promising. Vertical integration will facilitate the full realization of the potential of domestic woodworking enterprises. The creation of integrated business structures in the woodworking sector, in particular in the Western regions, will enable meeting the needs of the woodworking productions for raw materials by establishing mutually beneficial links with the forestry sector; supporting and stimulating investment activity at the meso-level, which will ultimately contribute to the formation of a high level of competitiveness of domestic wood products, and consequently, to acceleration of their entry into foreign markets and to increasing the efficiency of the Ukrainian woodworking industry as a whole.
industry, woodworking production, products, export potential, development
Production of meat and meat products is one of the key segments of domestic processing industry. In 2018, its share in total food production in Ukraine reached 17.78% (vs. 15.93% in 2013). At the same time, the main problem holding back the development of this segment is the reduction of the raw material base for the industrial processing of meat due to the crisis in animal husbandry, especially in pig and cattle breeding. The purpose of the article is to define the problems and to outline the prospects for the development of meat processing manufacturing in Ukraine, given the current state of the domestic and foreign markets of meat raw materials (chicken, pork, beef, etc.). The meat and meat product manufacturing in Ukraine is dominated by poultry meat, which share has increased by 7.22 pp. in the last six years. Instead, the share of meat products decreased by 6.54 pp. These trends indicate the reduction of advanced processing of meat raw materials. This is largely due to the low level of operating profitability of meat product manufacturing in Ukraine – 2.6% in 2018 vs. 3.7% in 2013, while the profitability of poultry meat manufacturing reached 11.3% (vs. 9.1%). Given the latest global trends in changing consumer preferences in favor of dietary types of meat, this poultry development trend in Ukraine has great prospects, especially in regions where there are no large agricultural companies. In contrast to poultry farming, the trends in domestic pig breeding are mostly negative, due to the decrease in the number of pigs caused by outbreaks of African swine fever. An even more critical situation in Ukraine is with the production of beef and veal, which is a direct result of the cattle livestock population reduction by more than 6 times in the last 25 years, as well as of the high cost of meat procurement. The latter is caused by poor livestock feed base. To overcome this problem, it is necessary to increase the volume of domestic production of compound feeds and their components. In particular, a promising area for the development of meat processing in Ukraine is the production of animal origin feeds, the raw material for which is food waste. Integrated use of meat raw materials will ultimately increase the level of profitability of this segment of the processing industry.
production of meat and meat products, chicken, pork, beef, regions, exports, imports
The scale and deep heterogeneity of the national economy of Ukraine in the regional context make the relevance of scientific research in this thematic area. The purpose of the article is to determine the economic specialization of the regions of Ukraine by key economic activities contributing to the formation of gross value added, as well as outlining the potential risks to the national economy, taking into account the situation on world commodity markets. The results of the research showed that one of the consequences of the unstable dynamics of industrial production in Ukraine under the influence of geopolitical and macroeconomic factors is the reduction of industrial specialization of the economy of a number of Ukrainian regions. Thus, in 2017 the manufacturing was the leading economic activity (with the highest share in the gross value added created) in 11 regions, compared to 15 in 2012. So Poltava, Donetsk, Dnipropetrovsk and Zaporizhzhya regions are considered to be “highly industrial”. At the same time, the agrarian specialization of the economy of Ukraine and its regions deepened – in 2017 agriculture became the leading type of economic activity in 11 regions (compared to 7 in 2012). The most “agrarian” in Ukraine (with a share of agriculture in gross value added over 30%) in 2017 became the Kherson, Kirovohrad and Khmelnytsky regions. Increasing the level of “agrarianization” of the national economy in the context of volatility of agricultural commodity prices on the world markets poses significant risks for the socio-economic development of Ukraine and its regions. These risks are exacerbated by the high amplitude of fluctuations in the volume and structure of domestic agricultural products and the low degree of processing of raw materials. To improve the structure of domestic commodity exports (in the direction of increasing its share of products with a higher degree of processing) and to deepen its diversification, a number of measures should be carried out aimed at stimulating export activity of enterprises (industrial and agro-industrial), carrying out technical and technological re-equipment of industrial and export production bases, creation of new high-tech industries on the basis of the implementation of powerful innovation and investment projects.
economic specialization, industry, agriculture, structure, gross value added, export
A trade, along with industry and agriculture, is among the main types of economic activity in Ukraine, with one of the largest shares in gross value added – 15.7 per cent in 2016 (vs. 16.9 in 2014). The key indicator of the development of trade is the index of the physical volume of the retail trade. It indirectly reflects the purchasing power of the population, the level of supply and demand balance for consumer goods by price and quantitative parameters, the socio-economic situation of the country or the regions. The latter proves the role of trade as a socially important segment of the national economy. The purpose of the article is to assess the dynamics of development indicators and structure of retail commodity circulation in Ukraine in the context of food and non-food products and their origin. As the dynamics of the index of physical volume of retail trade turnover showed, in 2017, the trade grew in Ukraine after its fall in 2012-2015 as a result of the influence of monetary and non-monetary factors. The positive value of the index of physical volume of retail trade turnover was reached in 20 regions vs. none in 2015. There were changes in the structure of retail turnover. The predominance of growth in the sales of food products for non-food products in 2017 was recorded in 11 regions vs. two in 2016 and 23 in 2014. In the regional structure of Ukraine’s retail trade turnover (in terms of value terms), in 2017 the highest shares were occupied by Dnipropetrovsk (11.0 per cent), Kharkiv (9.86%) and Odesa (9.56%) regions. There was a reduction in the weight of trade in the national economy – its share in gross value added in 2016 amounted to 15.7 per cent vs. 16.7 in 2012. The decrease in indicator occurred in twenty two regions, of which the most significant (more than 5 percentage points, pp.) – in Donetsk, Transcarpathian, Lugansk and Lviv. Ukraine is characterized by the tendency towards the constant increase in the share of imports in the retail trade turnover. During 2005-2017 the growth of this indicator amounted to 18.2 pp., in particular, food products – 8.7 pp. and nonfood – 25.0 pp. Among the regions in 2017, the highest share (more than 50 per cent) of the share of imports in the retail trade turnover was in the Vinnytsia and Odesa regions, while the lowest (more then 40%) was in Sumy, Chernihiv and Kirovograd regions. The further author’s research will be devoted to further analysis of the trends and the search for the effective mechanisms for the implementation of the state policy of import substitution.
index of physical volume of retail commodity turnover, structure, food and non-food products, trade, share of imports in retail trade turnover
In the article given the structural heterogeneity of the formation of domestic commodity exports in a regional context, research in this direction is relevant. The results of relevant analytical assessments will create an information base for the development of regional export strategies. The purpose of the article is to determine the main trends of commodity export development in the Ukraine regions on the basis of evaluation of its dynamics and structure. Since 2016, export activity has been restored in Ukraine. In 2017, the growth rates of commodity exports were negative only in two regions – Luhansk and Kirovograd. The basis of commodity exports of Ukraine (43.35%) is formed by three regions – Dnipropetrovsk, Donetsk and Zaporizhya. These regions exported 93.57% of the metallurgy products (product group ХV), which predominates in domestic commodity exports with a share of 29.25%. Dnipropetrovs’k region is also a leader in the volume of exports of mining industry products with a share of 52.07%. The sign of the deterioration of the structure of Ukrainian commodity exports (according to the criterion of technological capacity) is a significant increase in its low-tech products, in particular agriculture and food industry (I-IV commodity groups), almost in twice, and woodworking (IX-X groups) and textile (XI group) of productions – more than in 1.5 times. At the same time, the share of high- and medium-tech products decreased significantly: chemical production (VІ group) – almost in twice, the transport industries (ХVІІ group) – in 5.8 times. The decline in technological capacity and the level of diversification of the structure of commodity exports in the direction of strengthening its raw material orientation creates serious threats to the country’s socio-economic development in the worsening of the world situation on commodities. To eliminate these and other threats, it is proposed to: diversify the commodity structure of domestic exports by increasing the number of commodity groups in it (in particular, the products of high and medium technological production); balancing the structure of commodity exports in the context of Ukraine’s trading partners; directing the policy of import substitution to strengthen the orientation of certain categories of industrial production to meet the needs of the domestic market; the introduction of selective subsidization, tax incentives and information and consultation support of domestic commodity producers, especially innovation.
commodity export, growth rates, structure, commodity group, products of industry, products of agriculture
Despite the slowing down of industrial development in Ukraine due to the influence of many factors, industry remains the leading form of economic activity. The need for further reformation of this sector of the national economy in order to ensure its competitiveness in the context of strengthening globalization processes requires new analytical assessments and the development of relevant proposals in this direction. The purpose of the article is to determine the key trends in the development of the industrial sector of Ukraine’s economy through the prism of the activity and efficiency of its functioning. In accordance with the author’s methodical approach, the evaluation was conducted by a set of indicators characterizing production, export, investment, capital and innovation activity, as well as resource and economic efficiency. According to the results of calculating of these indicators’ values, it was found that in 2016 the overall level of activity and efficiency of functioning of the industrial sector of the national economy increased after its sharp decline in 2013-2015. The growth of values of such indicators was achieved: the share of industrial output in the volume of sales of products (goods and services); the rate of growth of non-current assets and capital investment in industry; the share of enterprises that introduced innovations in the total number of industrial enterprises; share of expenses on innovations in the total volume of capital investments; return on assets, productivity, profitability of operating activities. Instead, the values of such indicators as the growth rate of the volume of industrial products sold, the share of non-current assets in assets, the share of industry in total volume of foreign direct investment, the growth rate of foreign direct investment in industry, the share of industrial goods in the total exports of goods and services and the share of exports in the volume of industrial sales have decreased. Consequently, in Ukraine there are two negative trends in the development of industry: the reduction of direct foreign investment and the gradual loss of positions in commodity exports. A number of measures have been proposed to overcome them, in particular in the following areas: increasing the attraction of foreign direct investment to industry (expanding the access of industrial enterprises to foreign investment resources, raising the level of awareness of foreign investors regarding potential investment directions in Ukraine); increase of export potential of industry (stimulation of export activity of subjects of the industrial activity, creation of a parametric register of strategic exporters for forecasting flows of the commodity exports, diversification of commodity structure of export and its balancing by the countries-trade partners of Ukraine).
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