STRUCTURE OF PRODUCT EXPORTS OF UKRAINE: ASSESSMENT OF THE ELASTICITY OF THE PRODUCT GROUPS DYNAMICS
The article is devoted to the analysis of the structure of Ukrainian exports based on the use of the ABC method. Its purpose is to assess the prospects of various product groups in the future model of Ukraine’s foreign trade based on the use of microeconomic analysis methods. The article substant...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Alfred Nobel University Publisher
2023-07-01
|
| Series: | Êvropejsʹkij Vektor Ekonomìčnogo Rozvitku |
| Subjects: | |
| Online Access: | https://eurodev.duan.edu.ua/images/PDF/2023/1/3.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The article is devoted to the analysis of the structure of Ukrainian exports based on the
use of the ABC method. Its purpose is to assess the prospects of various product groups in the
future model of Ukraine’s foreign trade based on the use of microeconomic analysis methods.
The article substantiates methodical approaches to the division of individual goods of positions
A, B and C depending on their specific weight in the total income from exports. Based on the
data for 2021 (the last pre-war year of export growth), 5 commodity items that provide more
than 75% of export income (group A) and 10 commodity items that make up more than 90% of
exports (A+B) were selected. It is these positions that should be the focus of the state’s attention
on the formation of export policy. The performed grouping was used to analyze the trends of
changes in the export structure over the last 10 years. It was found that in group A, two product
positions (chapters XV and XVI according to the Ukrainian classification of goods of foreign
economic activity - UCG FEA) have a steady tendency to weaken positions, as well as two
other positions (chapters II and III), on the contrary, constantly increase their specific weight
in total exports. This phenomenon is qualified as deindustrialization of Ukrainian exports. In
order to identify the growth potential of Ukrainian exports and justify the basic principles of
the formation of the post-war foreign economic strategy, the ABC analysis was supplemented
by the calculation of the elasticity coefficient for individual commodity items, which is defined
as the ratio of the percentage change in income from the corresponding commodity item to
the percentage change in the total value of commodity exports for the corresponding year.
The analysis of the obtained results showed that goods from section XV (Precious metals
and products thereof) are characterized by high elasticity both in periods of growth of total
exports and its reduction. This gave reason to assume that the main factors of the dynamics
of this part of exports lie outside the country’s borders, and therefore it should not form the
basis of foreign trade strategy in post-war Ukraine. On the contrary, goods from sections I,
II, III and IV (goods related to agro-industrial complexes) have low elasticity, their export is
characterized by stability. However, due to these reasons, they also do not have significant
growth potential, and therefore should be considered not as a driver, but as a stabilizer of
foreign trade. The goods of group XVI (Machines, equipment and mechanisms; electrical
equipment) have the greatest potential. Therefore, in the post-war strategy of foreign economic
activity, a special place should be given to the stimulation of both the production and export of
these goods, as well as the creation of special conditions for investors (domestic and foreign)
who are ready to invest in export-oriented machine-building enterprises. |
|---|---|
| ISSN: | 2074-5362 |