UKRAINE IN GLOBAL VALUE CHAINS: CHALLENGES AND PROSPECTS OF ECONOMIC DEVELOPMENT
Abstract
The article examines the challenges and prospects of Ukraine's economic development in global value chains. Theoretical approaches are summarized and the potential of trade openness to improve the methodological and empirical foundations of the formation of global value chains and long-term strategic planning is determined. For this purpose, essential features and main trends of the development of global value chains are analyzed, and theoretical, empirical and methodological opportunities for the development of Ukraine's trade potential are considered. A literature review on the research topic is provided. The article analyzes the dynamics of Ukraine's trade openness indicator, which is an important characteristic element of the country's economic integration into the world economy and value-added chains. The authors of the article state that Ukraine actively participates in global value chains (GVCs) and is integrated into the global trade network. In 2021, the main trade partners of Ukraine were the USA, China, as well as the countries of the European Union, in particular Germany, France, Italy and Spain. However, 2022 saw a decline in exports to the US and China amid the war, and the UK, Switzerland, Japan, India and the UAE became important new partners. Special attention is paid to the concept of transition from production with a relatively low added value to high-tech service and the corresponding functional renewal and diversification of the economy, including through the use of various forms of interaction and partnerships. In the article, the authors analyzed the role of global value chains (GVCs) in the modern economy, in particular, their impact on the economic development of developing countries through functional renewal and diversification. The need for stakeholder empowerment to effectively regulate GVCs is discussed, as well as South Korea's successful experience in transforming its economy through internationalization and innovation. The importance of multilateral partnerships and the role of Ukraine in GVCs to ensure sustainable economic growth and adaptation to global changes are highlighted.
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Megits N., Meyer D. (2023) An economic analysis of the impact of the Russian War in Ukraine on the Poland-U.S. trade. Journal of Eastern European and Central Asian Research (JEECAR). vol. 10(7). рр. 1135–1147.
Neumayer E. (2002) Does trade openness promote multilateral environmental cooperation? World economy. vol. 25 (6). pp. 815–832.
Niroomand F., Nissan E. (1997) An inquiry into openness in international trade, Journal of Economic Studies. vol. 24 (3). pp. 167–178.
Park A., Nayyar G., Low P. (2013) Supply Chain Perspectives and Issues. A Literature Review. WTO Publications, Fung Global Institute. 234 р.
Pasquali G., Alford M. (2022) Global value chains, private governance and multiple end-markets: insights from Kenyan leather. Journal of Economic Geography. vol. 22 (1). рр. 129–157.
Sotomayor M., Cordova, M. (2022) Rethinking Global Value Chains in Latin America under COVID 19: Challenges and Opportunities for Exporting Firms. AD-Minister. vol. 40. pp. 5–30.
Sturgeon T.J. (2009) How Do We Define Value Chains and Production Networks? IDS Bulletin. vol. 32 (3). pp. 9–18.
Sturgeon T.J., Memedović O. (2011) Mapping Global Value Chains: Intermediate Goods Trade and Structural Change in the World Economy. United Nations Industrial Development Organization (UNIDO). Development Policy and Strategic Research Branch. Working Paper 05/2010. 58 р.
Trade in Value Added (TiVA) 2023 edition: Principal Indicators, levels. OECD. URL: https://www.oecd.org/ (accessed August 15, 2024)
Ukraine perspective Total – All-Groups, for Export and Buyer. World Integrated Trade Solution, WITS, 2021. URL: https://wits.worldbank.org (accessed August 15, 2024)
Van Dijk M.P., Trienekens J. (2012) Global value chains. Linking local producers from developing countries to international markets. Amsterdam University Press. 280 р.
Wang E.Y., Driffield N., Clegg J., Miles L., Alford M., Kim J. (2023) What Does It Take to Build an Inclusive Governance of Global Value Chains? A Framework for Intervention. AIB Insights. vol. 23 (2). URL: https://doi.org/10.46697/001c.71445 (accessed August 15, 2024)
Wirtz J., Tuzovic S., Ehret M. (2015) Global Business Services: Increasing Specialization and Integration of the World Economy as Drivers of Economic Growth. Journal of Service Management. vol. 26 (4). рр. 565–587.
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