Dependence of ukrainian economy on industrial import and prerequisites of forming effective industrial specialization

Inna A. Shovkun


The relevance of the research theme is conditioned by deepening of the Ukrainian economy deindustrialization and its import dependence. The key feature of high import dependence is the huge deficit in the balance of foreign merchandise trade, which has already existed for a long time.

 The article surveys the theoretical foundations of the study of economy import dependence. It also represents an overview of the current realities of import substitution policies applied in different countries.

The main source of information for the study was the statistical data of the input-output tables. The level of dependence of the Ukrainian economy on import of industrial goods was estimated by the directions of its use – in intermediate and final consumption, gross accumulation of fixed capital. Calculations showed that a significant part of the functions in servicing of the consumer and investment market is performed by foreign manufacturers, whereas the country's manufacturing sector is mainly engaged in the production of intermediate products, which also remains the basis of its export (metals, raw mineral products, inorganic chemistry, wood and wood products).

An analysis of the level of dependence of various types of manufacturing in the processing industry on import showed that since recently the overwhelming advantage of import, especially products of the chemical industry, mechanical engineering, and light industry, has consolidated in the domestic market of intermediate goods.

As the result of the research there been made conclusion that priority activities (in the context of effective production specialization) are those that have a high level of intersectoral production relations. This role is primarily suitable for mechanical engineering and chemical industry. Another prerequisite for successful import substitution is the diversification of export based on the modernization of production in the processing industries. It is also required to create innovative industrial clusters of the network type where production companies and research organizations are combined in a joint scientific and production process. The development of the raw material base and mining from Ukrainian deposits will also favor self-sufficiency of economy and transition to efficient production specialization.


import consumption, input-output tables, commodity structure of foreign trade, manufacturing, import substitution policy, effective specialization

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