ASSESSMENT OF THE COMPETITIVENESS OF THE TIMBER INDUSTRY IN UKRAINE AND OTHER COUNTRIES IN THE CONTEXT OF ADDED VALUE

Keywords: timber industry, competitiveness, revealed comparative advantage (RCA), contribution to the trade balance (CTB), integral assessment, cluster analysis, value added

Abstract

The article is concerned with assessing the competitiveness of the timber industry complex (TIC) of Ukraine and other countries. The study proposes a methodological approach to assessing the competitiveness of the timber industry in Ukraine and other countries, taking into account the levels of added value of products. The methodological approach is based on a comprehensive combination of the Revealed Comparative Advantage (RCA) and Contribution to the Trade Balance (CTB) indices. The databases of the international organisations FAO, the sector of production and trade in forest products, and UNCTAD, the sector of international trade in goods, were used as an information base for assessing the competitiveness of the timber industry in Ukraine and other countries. The assessment of the competitiveness of the country's timber and wood products involves the calculation of the following: an integral indicator of the country's timber and wood products competitiveness, complex indicators (a complex indicator of low value-added products, a complex indicator of medium value-added products, a complex indicator of high value-added products), RCA and CTB indices calculated for timber and wood products by levels of added value. According to the results of the study's integrated assessment of the competitiveness of the Ukrainian and global timber and wood products industries, it was found that Ukraine demonstrates a fairly significant level of overall competitiveness of the timber and wood products industry, but it is largely dependent on the export of low- and medium-value-added products. According to the cluster analysis, Ukraine was included in the group of countries characterised by a low level of competitiveness of the timber and wood products in terms of added value. Therefore, to ensure the sustainable development of the timber and wood products industry, it is necessary to diversify exports and move to the production of higher value-added products. The results of the study highlight the need to develop an effective strategy for the development of the industry, to invest in technological upgrades and the development of innovative products.

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Published
2024-08-26
How to Cite
Hubarieva , I., Kriachko, Y., & Perepelitsyn, G. (2024). ASSESSMENT OF THE COMPETITIVENESS OF THE TIMBER INDUSTRY IN UKRAINE AND OTHER COUNTRIES IN THE CONTEXT OF ADDED VALUE. Economy and Society, (66). https://doi.org/10.32782/2524-0072/2024-66-47
Section
ECONOMICS