EXPORT OF MEDICINAL PLANTS OF UKRAINE IN GLOBAL VALUE CHAINS
Abstract
The article examines Ukraine's medicinal plant exports within global value chains (GVCs) and evaluates the country's role in international value creation. The relevance of the research is determined by the expansion of the global market for medicinal and aromatic plants, increasing demand for natural raw materials in pharmaceutical, nutraceutical and cosmetic industries, and the need for technological upgrading in global production networks. The purpose of the study is to assess the structure of Ukraine's medicinal plant exports, determine its position within the global value chain, identify sources of value creation and substantiate directions for increasing domestic value added through deeper processing. The methodological framework combines statistical, comparative and structural analysis with the GVC approach. Export dynamics and geographical distribution were analyzed using international trade statistics; the Herfindahl-Hirschman Index was applied to assess export concentration, and the VCG approach estimated unrealized value added from limited domestic processing. The results show that Ukraine has restored medicinal plant exports after the decline caused by the full-scale war. However, exports remain predominantly resource-oriented: Ukrainian supplies consist mainly of raw or minimally processed medicinal plants, while extraction, standardization, production of active pharmaceutical ingredients and finished herbal products are concentrated abroad. Ukraine therefore occupies an upstream position in the global value chain and captures only a limited share of final value. The VCG confirms significant unrealized economic potential and indicates that deeper processing is essential for increasing export efficiency. The practical significance of the research lies in substantiating measures for developing processing facilities, certification systems and cooperation between producers and pharmaceutical companies to strengthen Ukraine's integration into global value chains.
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