INTERNATIONAL TRADE IN GOODS AND ITS KEY DEVELOPMENT TRENDS IN UKRAINE

Abstract

The article seeks to explore the drastic changes in the modern economic realia in Ukraine which are characterized by intensification of globalization, elimination of barriers that hinder the development of economic relationships with other actors in the world economy. This opens up new opportunities for domestic enterprises to use external factors of development, attract international financial and technological resources, implement production and management best practices, and expand the existing markets. The purpose of this article is to provide insights on the trends of international trade in goods in Ukraine, identify the key vectors to address the international trade challenges in Ukraine and to specify the prospects for further development of international trade in goods. To attain the research objectives, the general research methods have been employed, in particular, the logical approach and generalization, and the methods of statistical and financial analysis – to assess the indicators of export and import of goods in Ukraine. Special emphasis is put on the significant effect from the drop in Ukraine's external turnover with the CIS countries (from 15.2% in 2015 up to 10.8% in 2019). Among the major reasons for the decline in foreign markets trading are geopolitical issues, complete or partial exclusion of Ukrainian enterprises from their direct participation in foreign economic activities, currency instability and volatility of the national economy, etc. According to the results of the study, it is argued that the lag in creating favorable environment to enhance production and international trading along with expanding the state budget revenues (behind imbalanced structure of exchange trade and its low efficiency) will reinforce the structural and investment crisis and extend the period of economic stagnation. All this reduces the opportunities to boost the national economy competitiveness and expand international trading. Thus, there is a need to reconsider the current approaches and actions to gain a competitive edge, in particular this refers to tackling the crisis challenges and facilitate post-crisis economic recovery. The study pinpoints a significant role of exports in shaping Ukraine's economy. Thus exports must become a driver in structural transformation of Ukraine’s economy, both in the short-run and in the medium term perspective. In this context, it is proposed that to continue to foster economic partnerships with the EU and other countries globally, Ukraine needs to accomplish the reforms within the country, in particular, improve the business climate, eliminate corruption and strengthen self-government. The Ukraine's international trade efforts should be aimed at increasing and accelerating exports of Ukrainian goods, implementing import substitution policies to improve Ukraine's trade balance; promoting the optimization of import structure; generating government to support Ukrainian exports, etc. Hence, further development of Ukraine's international trade and its implications for the national economy should rely on a balanced government policy to enhance domestic manufacturing, mitigate crisis effects, overcome unemployment, and strengthen the national currency.