PROBLEMS OF FUNCTIONING OF THE SERVICE SECTOR AND THEIR IMPACT ON THE POSITION OF UKRAINE IN THE GLOBAL DIVISION OF LABOR

Abstract

The purpose of the paper is to determine the problems of functioning of the service sector in Ukraine and the impact of the identified shortcomings on the position of the country in the global division of labor. Methodology. The study was conducted using a systematic approach to the study of economic categories and processes. The following research methods were used in the study: induction and deduction, synthesis, economic analysis, graphic analysis, historical analysis. Results. At the current stage of economic development, ensuring stable growth of the service sector is a particularly important issue for Ukraine, on which the further development of the state depends. However, today the activity of Ukraine's service sector is characterized by low efficiency, which does not allow the country to fully realize its potential in this area. The reason for the inefficient functioning of the tertiary sector of the economy is the presence of numerous problems inherent in the service sector. The main problem with the functioning of the services sector is the lack of a strategic vision of its role in the development of Ukraine's economy. In addition, the services sector is negatively affected by systemic problems of Ukraine's economy, such as unstable legislation, corruption, bureaucracy, etc. Some areas of the tertiary sector of the economy have certain shortcomings. The identified problems in the functioning of the services sector have a negative impact not only on the functioning of the tertiary sector, but also on the competitive position of the country as a whole in international markets. The identified weaknesses in the tertiary sector affect most of the key components of competitiveness: the level of infrastructure development, the stability and depth of the financial system, education and the quality of the workforce, the ability to innovate, the implementation of information and computer technology, etc. In this regard, today it is necessary to rethink the role of services in ensuring the stable growth of Ukraine and strengthening the country's position in the global division of labor. There is also a need to develop a comprehensive strategy with the active participation of business, professionals, academics and the public to overcome the problems of the services sector and ensure further development of the services sector. The results of this study can serve as the basis for developing a strategy to improve the functioning of the services sector.