STATE GOVERNANCE FOR UKRAINE’S GROWTH AND DEVELOPMENT: TRADE ASPECT
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
The quality of a country’s governance and public administration is a key factor in its economic performance and the well-being of its citizens. The objective of the paper is two-fold: first, to substantiate the importance of the good and strong state governance for efficient functioning of the national economy; second, to analyze the basic indicators of Ukraine’s economy and its foreign trade, as well as to come up with the possible solutions to the identified problems. Methodology. Careful reading and examination of the conclusions made in theoretical and empirical works on state governance and government regulation by the Ukrainian and foreign scholars served the basis of the research at the initial stage. The data, taken from the official site of the State Statistics Service of Ukraine, served as the information source for using various methods, e.g.: mathematical, statistical, etc., which resulted in the analysis of the trends of the basic indicators of the economy of Ukraine and its foreign trade: GDP and gross external debt, exports/imports/turnover of goods/services and goods and services taken together; dynamics of the balance of trade in goods/services, as well as goods and services taken together; exports to imports ratio (goods and services). Results. The share of exports of goods in all exports of goods and services of Ukraine has been increasing and in 2021 it reached 84%. The results show that: first, the trend of the volume of exports of goods for the period of 2016-2021 is y=5.11x+31.177 while that of services for the same period is y=0.5986x+9.9367; second, the balance of trade in goods has been negative since 2005 (except 2015), and continues to be negative throughout the analyzed period; third, the share of the goods with high-added value in exports has been declining. The in-depth analysis allows to conclude that in the conditions of the growing gross external debt of Ukraine (e.g., for the period of 2006 –2021 the trend is y=2811.1x+90308 while that of GDP for the same period is y=823.65x+135155) it is essential: firstly, to follow the trade strategy of the EU which focuses on exports of services as compared to goods; secondly, to improve the commodity composition of exports so that the goods are value-competitive as opposed to price-competitive. Practical implications. It’s substantiated that the trade policy is to be formulated and implemented so that foreign economic activity of Ukraine is more services-oriented and science-and-technology based. Value/originality. The country is to occupy a more decent place in the world division of labor and is to be reintegrated into the world economy in the interests of the Ukrainian people.
How to Cite
##plugins.themes.bootstrap3.article.details##
government, state governance, public administration, government regulation, foreign trade policy, basic trade indicators, economy of Ukraine
Ali, M.M. (2022). Editorial: Good governance and regulation for humanity and no one is left behind in a turbulent situation [Special issue]. Journal of Governance and Regulation, 11(4), 198–200. DOI: https://doi.org/10.22495/jgrv11i4sieditorial
Alonso-Trabanco, J.M. (2022). The geoeconomic front of the Ukraine War. March 6, 2022. Geopolitical Monitor. Available at: https://www.geopoliticalmonitor.com/the-geoconomic-front-of-the-ukraine-war/
Alotaibi, A.R., & Mishra, A.V. (2014). Chapter 31 – Determinants of international financial integration of GCC markets. In M.Arouri, S.Boubaker, D.Nguyen (Ed.) Emerging markets and the global economy. Academic Press, 749-771. DOI: https://doi.org/10.1016/B978-0-12-411549-1.00031-4
Boltayeva, S., & Axmedova, F.H. (2021). Global experiences of state regulation of foreign economic activity. International Journal on Economics, Finance and Sustainable Development, 3 (12), 25-29. DOI: https://doi.org/10.31149/ijefsd.v3i12.2464
Bryant, M., & Sigurjonsson, T. O. (2022). Iceland’s financial crisis 2008: Not a normal accident [Special issue]. Journal of Governance & Regulation, 11(4), 354–364. DOI: https://doi.org/10.22495/jgrv11i4siart16
Daokui, D.L., & Maskin E.S. (2021). Government and economics: An emerging field of study. Journal of Government and Economics, 1. DOI: https://doi.org/10.1016/j.jge.2021.100005
Directorate-General for Structural Reform Support (2020). Governance and public administration. July 2020. Luxembourg Publications Office of the European Union. Available at: https://reform-support.ec.europa.eu/system/files/2021-03/ht0120283enn.pdf
Festré, A. (2021). Michael Polanyi’s vision of government and economics: Spanning Hayek and Keynes. Journal of Government and Economics, 4, 1–15. DOI: https://doi.org/10.1016/j.jge.2021.100026
Galbraith, J.K. (2008). The predator state: how conservatives abandoned the free market and why liberals should too. New York: The Free Press.
Gries, T., & Redlin, M. (2020). Trade and economic development: global causality and development- and openness-related heterogeneity. International Economics and Economic Policy, 17, 923–944. DOI: https://doi.org/10.1007/s10368-020-00467-1
Grytsenko, A. (2021). Methodology for studying the transformation of economic functions of the state in the context of globalization. Economy of Ukraine, 7, 5–13. DOI: https://doi.org/10.15407/economyukr.2021.07.005
Halasiuk, V.V. (2019). Conceptual basis for transformation of the economy of Ukraine. Kyiv: National Academy of Management, 188 p.
Honcharenko, O., Diachenko, O., & Bykova-Fedorchuk, N. (2020). State regulation of Ukraine's foreign trade in a global pandemic. Scientific Horizons, 20 (9), 86–97.
Jones, A. (2006). Dictionary of Globalization. Cambridge, UK; Malden, MA, USA: Polity. 258 p.
Korablin, S.O. (2021). Government regulation as a factor in counteracting COVID-19. Economy of Ukraine, 7, 27–40. DOI: https://doi.org/10.15407/economyukr.2021.07.027
Lane, N. (2020). The new empirics of industrial policy. Journal of Industry, Competition and Trade, 20, 209–234. DOI: https://doi.org/10.1007/s10842-019-00323-2
Loungani, P., Papageorgiou, C., & Wang, K. (2017). Services exports open a new path to prosperity. April 5, 2017. IMF blog. Insights and analysis on economics and finance. Available at: https://www.imf.org/en/Blogs/Articles/2017/04/05/services-exports-open-a-new-path-to-prosperity
Nayyar, G., Hallward-Driemeier, M., & Davies, E. (2021). At your service?: the promise of services-led development. Washington, DC: World Bank.
Ohmae, K. (2007). End of the nation state: the rise of regional economies. In P. James and B.K. Gills (Ed.), Globalization and Economy. Vol.1. Globalizing markets and capitalism. Los Angeles: Sage publications, 179–193.
Pustovoit, O.V. (2021). Price and value competitiveness of Ukrainian merchandise exports. Economy and Forecasting, 2, 7-31. DOI: https://doi.org/10.15407/eip2021.02.007
Radziyevska, S.O. (2018). Regionalization and globalization: interrelationships and prospects for non-confrontational development. Kyiv: “SIK HRUP UKRAYINA”, 376 p.
Radziyevska, S.O. (2022). Ukraine’s industrial strategy and government policy in the conditions of the Fourth Industrial Revolution. In Formation of innovative potential of world science: collection of scientific papers «SCIENTIA» with Proceedings of the IV International Scientific and Theoretical Conference, December 23, 2022 (pp.10-15). Tel Aviv, State of Israel. European Scientific Platform.
Radziyevskyy, I.A. (2007). Transformation of the system characteristics of public administration under globalization. Dissertation thesis, National Academy of Public Administration, Office of the President of Ukraine, Kyiv, Ukraine.
Report of the Secretary-General of UNCTAD to UNCTAD XIII (2011). Development-led globalization: Towards sustainable and inclusive development paths. N.Y.; Geneva: UN. 136 p. Available at: https://unctad.org/system/files/official-document/tdxiii_report_en.pdf
Riabets, K. (2022). The system and essence of general functions of the state governance in the modern period. Scientific Bulletin: State Governance, 1(11), 207–221.
Sardak, S., Radziyevska, S., & Us, I. (2019). Ukraine's exports as a global challenge for its future. CEUR Workshop Proceedings, 2422, 84–99.
Sarkorn, S., Sonsuphap, R., & Chantaworn, P. (2022). The political economy transition in a developing country [Special issue]. Corporate & Business Strategy Review, 3(2), 339–348. DOI: https://doi.org/10.22495/cbsrv3i2siart15
Services in the EU’s trade strategy (2022). Trade in services. European Commission. An official website of the European Union. Available at: https://policy.trade.ec.europa.eu/help-exporters-and-importers/accessing-markets/goods-and-services/services_en
Sidenko, V. (2018). Global structural transformations and trends in Ukrainian economy. Part 2. Innovative factors of structural change in the context of the Forth Industrial Revolution. Economy and Forecasting, 2, 7–28. DOI: https://doi.org/10.15407/eip2018.02.007
The State Statistics Service of Ukraine database. Available at: http://www.ukrstat.gov.ua/
Volden, C., & Wiseman, A.E. (2012). Governmental regulation and self-regulation. In The updated version of the report made at the 2008 Annual Meeting of the American Political Science Association, 50 p. Available at: https://www.vanderbilt.edu/csdi/events/prvtgov_wiseman.pdf
Way, A.L. (2022). The American system of government: politics & government in the U.S.A. Politics & Government: the essentials. Cyberland University of North America. Available at: http://www.proconservative.net/CUNAPolSci201PartOneB2.shtml
Worldwide Governance Indicators (2022). Available at: https://info.worldbank.org/governance/wgi/
The future of services trade (2020). In World trade report 2019. World Trade Organization. 227 p. Available at: https://www.wto.org/english/res_e/booksp_e/00_wtr19_e.pdf
This work is licensed under a Creative Commons Attribution 4.0 International License.