RESTRUCTURING UKRAINE’S ECONOMY THROUGH EU ACQUIS IMPLEMENTATION: A MULTI-DIMENSIONAL COMPETITIVENESS FRAMEWORK
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
This paper examines how Ukraine’s economic restructuring can be guided strategically through the implementation of EU legislation, using a multi-dimensional competitiveness framework. This is because formal legislative alignment with EU legislation has not resulted in full functional convergence with the EU's economic model. The primary purpose of the study is to develop and implement a multi-dimensional competitiveness framework that links the implementation of EU legislation to the restructuring of Ukraine’s economy. This framework is designed to systematically align Ukraine's institutional reforms, structural modernisation and innovation-driven transformation with the demands of the EU Single Market. To this end, the study will construct a five-dimensional competitiveness index to support acquis-driven economic restructuring. The methodology is firmly rooted in the JRC-OECD Handbook on Composite Indicators. The research employs a structured procedure that begins with the compilation of a harmonised dataset from exclusive international sources, including Eurostat, the World Bank and the OECD. A key step in the methodology is normalising all heterogeneous indicators onto a comparable 0–100 scale using a min–max transformation based on normative ranges derived from the EU-27 and Central and Eastern European comparator countries. The empirical results provide a clear, quantifiable assessment. The pilot calculation reveals that Ukraine's composite IGCS score is 40.8 points, compared to 70.9 points for the EU-27. This indicates a significant convergence gap of 42.5%. A detailed dimensional analysis reveals the structure of this gap. Ukraine demonstrates relative strength in macroeconomic resilience and innovation, driven by a specialised IT export sector. However, these strengths are offset by profound weaknesses. The institutional dimension reveals a significant discrepancy between the high level of implementation of formal acquis and the weak enforcement of the rule of law. These findings have substantial practical implications for policymakers in Ukraine and the EU. They highlight the need for institutional reform to shift focus from legislative transposition to enhancing judicial independence and regulatory enforcement, treating this as a critical macro-priority. Innovation policy must also extend beyond the IT sector in order to address systemic underinvestment in R&D. Most importantly, the green transition must form the core of reconstruction strategies to avoid future competitiveness cliffs. The study's originality and value lie in its novel synthesis of a tailored competitiveness index for a post-conflict accession economy, its combination of theoretical convergence concepts with empirical measurement, and its provision of a replicable, evidence-based framework for guiding modernisation and integration policies. This framework fills a critical gap in the existing literature and provides an evidence-based foundation for restructuring Ukraine’s economy in line with EU Single Market requirements.
How to Cite
##plugins.themes.bootstrap3.article.details##
EU acquis communautaire, competitive convergence, institutional reform, economic restructuring, innovation ecosystems, global competitiveness, Ukraine
Acemoglu, D. and Robinson, J.A. (2012) Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Publishing Group-A Division of Random House, Inc., New York. https://ia801506.us.archive.org/27/items/WhyNationsFailTheOriginsODaronAcemoglu/Why-Nations-Fail_-The-Origins-o-Daron-Acemoglu.pdf
Aiginger, K. (2006). The European socioeconomic model. Austrian Institute of Economic Research. https://karl.aiginger.wifo.ac.at/fileadmin/publications/2006/the-european-socioeconomic-model_01.pdf
Aigner, E., et al. (2016). Sustainable work: Seven case studies on social–ecological implications in Europe (WWWforEurope Working Paper No. 112). WWWforEurope. https://www.econstor.eu/bitstream/10419/146609/1/846985500.pdf
Akhvlediani, T., & Movchan, V. (2024). The impact of Ukraine's accession to the EU Single Market: Sectoral impacts and implications for the EU (ICDS Policy Paper). International Centre for Defence and Security. https://cdn.ceps.eu/wp-content/uploads/2024/03/ICDS_Policy_Paper_The_Impact_of_Ukraines_Accession.pdf
Antoniuk, L. L., & Anapriiuk, K. A. (2023). Stratehichni priorytety ta kliuchovi napriamy konkurentnoho rozvytku Ukrainy v umovakh hlobalnykh ekonomichnykh vyklykiv [Strategic priorities and key directions of Ukraine's competitive development in the face of global economic challenges]. Problemy suchasnykh transformatsii: Ekonomika ta upravlinnia, 8. https://doi.org/10.54929/2786-5738-2023-8-02-01
Babets, I. H., & Zhabynets, O. Y. (2022). Pidvyshchennia konkurentospromozhnosti vitchyznianykh tovarovyrobnykiv v umovakh hlobalnykh vyklykiv: Rehionalnyi aspekt [Increasing the competitiveness of domestic producers in the face of global challenges: Regional aspect]. Biznes Inform, 7, 4–10. https://www.business-inform.net/export_pdf/business-inform-2022-7_0-pages-4_10.pdf
Bendarzsevszkij, A. (2025). Impacts of Ukraine's accession on the EU and its member states (EUROPEUM Policy Brief). EUROPEUM Institute for European Policy. https://www.europeum.org/wp-content/uploads/Ukraine-accession_tvpaper_FINAL.pdf
Cabinet of Ministers of Ukraine. (2024). Report on the implementation of the Association Agreement between Ukraine and the European Union for 2024. https://eu-ua.kmu.gov.ua/wp-content/uploads/Zvit-pro-vykonannya-Ugody-pro-asotsiatsiyu-za-2024-rik.pdf
Canatay, A., Prieto, L., & Amin, M. R. (2025). Navigating the convergence of global competitiveness and sustainable development: A multi-level analysis. Sustainability, 17(12), Article 5361. https://www.mdpi.com/2071-1050/17/12/5361
Cevik, S. (2022). Climate change and energy security: The dilemma or opportunity of the century? (IMF Working Paper No. WP/22/174). https://www.imf.org/-/media/Files/Publications/WP/2022/English/wpiea2022174-print-pdf.ashx
Darvas, Z., Dabrowski, M., Grabbe, H., Léry Moffat, L., Sapir, A., & Zachmann, G. (2024). Ukraine’s path to European Union membership and its long-term implications (Bruegel Policy Brief No. 05/2024). Bruegel. https://www.bruegel.org/system/files/2024-03/PB%2005%202024_2.pdf
DOU. (2024). Ukraine’s IT export in 2024: Analytics. https://dou.ua/lenta/articles/it-export-in-2024/
Dunning, J. H. (1980). Toward an eclectic theory of international production: Some empirical tests. Journal of International Business Studies, 11(1), 9–31. https://doi.org/10.1057/palgrave.jibs.8490593
European Commission. (2024). Ukraine report 2024. https://enlargement.ec.europa.eu/document/download/1924a044-b30f-48a2-99c1-50edeac14da1_en?filename=Ukraine+Report+2024.pdf
Eurostat. (2025). GDP and main components – annual data. https://ec.europa.eu/eurostat/databrowser/view/nama_10_gdp/default/table
Ginevičius, R., Žemaitis, E., Šuhajda, K., & Schieg, M. (2023). Assessing the global competitiveness of European countries. Journal of Competitiveness, 15(4), 36–59. https://www.cjournal.cz/files/505.pdf
International Energy Agency. (2024). Ukraine energy profile 2024. https://www.iea.org/reports/ukraine-energy-profile-2024
International Energy Agency. (2025). Empowering Ukraine through a decentralised electricity system. https://iea.blob.core.windows.net/assets/1cb1324f-e145-41c3-b0c2-d78561b4f1fd/EmpoweringUkraineThroughaDecentralisedElectricitySystem.pdf
International Monetary Fund. (2023). Global Financial Stability Report: Safeguarding Financial Stability amid High Inflation and Geopolitical Risks. https://www.elibrary.imf.org/display/book/GFERFWEEA/GFERFWEEA.pdf
International Monetary Fund. (2025a). Global financial stability report: October 2025 – Shifting ground beneath the calm. https://www.imf.org/en/Publications/GFSR/Issues/2025/10/14/global-financial-stability-report-october-2025
International Monetary Fund. (2025b). Poland: 2025 Article IV consultation – Press release; Staff report; and statement by the executive director for Poland (Country Report No. 2025/002). https://www.imf.org/-/media/Files/Publications/CR/2025/English/1polea2025002-print-pdf.ashx
International Telecommunication Union. (2025). Ukraine digital development country profile (Version 3.0). https://www.itu.int/en/ITU-D/Regional-Presence/Europe/Documents/Publications/2025/Final_Ukraine%20Digital%20Development%20Country%20Profile%20version%203.0.pdf
IT Ukraine Association. (2025). IT Ukraine report 2025: Full House Edition. https://itukraine.org.ua/files/reports/2025/ITU_rep2025FH_en.pdf
Ivanov, Y. (2022). Evaluation of export diversification in Ukraine. Economy and Society, 41, 398–409. https://doi.org/10.32782/2524-0072/2022-41-41
Khatser, M. V., & Mikhailik, O. K. (2024). Ensuring the competitiveness of logistics enterprises amidst the military development of Ukraine's economy. Management and Entrepreneurship: Trends of Development, 1(27), 148–155. https://management-journal.org.ua/index.php/journal/article/view/496
Lunova, T. (2022). Otsinka konkurentospromozhnosti natsionalnoi ekonomiky Ukrainy: Reitynhovyi pidkhid [Assessment of the competitiveness of the national economy of Ukraine: Rating approach]. Ekonomichnyi prostir, 181, 38–42. https://doi.org/10.32782/2224-6282/181-6
Media Center Ukraine. (2025). Ukraine earned USD 24.7 billion from agricultural exports in 2024. https://mediacenter.org.ua/second-highest-historical-record-ukraine-earned-usd-24-7-billion-from-agricultural-exports-in-2024/
Movchan, V., & Pindyuk, O. (2024). Ukraine’s future competitiveness: Directions for structural shifts in foreign trade and investment (wiiw Research Report No. 6900). Vienna Institute for International Economic Studies. https://wiiw.ac.at/ukraine-s-future-competitiveness-directions-for-structural-shifts-in-foreign-trade-and-investment-dlp-6900.pdf
Nazarchuk, T., Tiurina, N., & Kovalchuk, V. (2023). Natsionalnyi brend yak instrument pidvyshchennia hlobalnoi konkurentospromozhnosti krainy [National brand as a tool for increasing the global competitiveness of a country]. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky, 316(3), 4–10. https://journals.khnu.km.ua/vestnik/wp-content/uploads/2023/05/2023-316-4.pdf
Novosad, I. Y., & Panchenko, A. V. (2024). Stan i perspektyvy konkurentospromozhnosti IT-kompanii na rynku posluh [Competitiveness of IT companies in the services market]. Ukrainskyi zhurnal prykladnoi ekonomiky ta tekhniky, 9(3), 61–70. https://ujae.org.ua/wp-content/uploads/2024/11/ujae_2024_r03_a61.pdf
OECD. (2024a). Gross domestic spending on R&D (% of GDP). https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm
OECD. (2024b). OECD economic surveys: Estonia 2024. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/05/oecd-economic-surveys-estonia-2024_6951c94b/33e6beee-en.pdf
OECD. (2024c). OECD economic surveys: Romania 2024. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/03/oecd-economic-surveys-romania-2024_12c283a2/106b32c4-en.pdf
Saaty, T. L. (1980). The analytic hierarchy process: Planning, priority setting, resource allocation. McGraw–Hill.
Shahini, E., & Shtal, T. (2023). Assessment of the competitiveness of Ukrainian agricultural holdings in international markets. Ekonomika APK, 30(6), 45–56. https://eapk.com.ua/en/journals/tom-30-6-2023/otsinka-rivnya-konkurentospromozhnosti-ukrayinskikh-agrokholdingiv-na-mizhnarodnikh-rinkakh
Stefanishyna, O., et al. (2024). Merged report: Ukraine's implementation of the EU-Ukraine Association Agreement in 2024. https://eu-ua.kmu.gov.ua/wp-content/uploads/Zvit-Ugoda-pro-asotsiatsiyu-EN.pdf
Umantsiv, Y., Rudenko, I., Ozhelevskaya, T., Shcherbakova, T., & Khrustalova, V. (2025). Competitiveness of the IT business in Ukraine: Current state and pathways for enhancement. Financial and Credit Activity: Problems of Theory and Practice, 1(60), 387–400. https://www.researchgate.net/publication/389432735_COMPETITIVENESS_OF_THE_IT_BUSINESS_IN_UKRAINE_CURRENT_STATE_AND_PATHWAYS_FOR_ENHANCEMENT
Volosnykova, N., Klymova, S., Hubanova, N., Kosych, M., & Yatsyna, V. (2022). Napryamy rozvytku konkurentospromozhnosti Ukrayiny v umovakh hlobalizatsiyi [Directions for the development of Ukraine's competitiveness]. Financial and Credit Activity, 4(45), 365–373. https://fkd.net.ua/index.php/fkd/article/view/3784
World Bank. (2023a). Romania systematic country diagnostic update. https://documents1.worldbank.org/curated/en/099134003102323181/pdf/BOSIB0480d508207e0805908b215a1d78b8.pdf
World Bank. (2023b). Worldwide Governance Indicators database: Rule of Law (1996–2023). https://info.worldbank.org/governance/wgi/
World Bank. (2024). GDP per capita, PPP (current international $). Ukraine and European Union. https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=UA-EU
World Bank. (2025a). Europe and Central Asia economic update. https://www.worldbank.org/en/region/eca/publication/europe-and-central-asia-economic-update
World Bank. (2025b). Ukraine overview. https://www.worldbank.org/en/country/ukraine/overview
World Economic Forum. (2025a). Annual report 2024–2025. https://reports.weforum.org/docs/WEF_Annual_Report_2024_2025.pdf
World Economic Forum. (2025b). Global cybersecurity outlook 2025. https://reports.weforum.org/docs/WEF_Global_Cybersecurity_Outlook_2025.pdf
World Economic Forum. (2025c). Global risks report 2025. https://reports.weforum.org/docs/WEF_Global_Risks_Report_2025.pdf
Zadoya, O. A., Mahdich, A. S., & Novikov, A. M. (2024). Konkurentospromozhnist’ Ukrayiny [Competitiveness of Ukraine]. International Science Journal of Management, Economics & Finance, 3(4), 69–78. https://www.researchgate.net/publication/382819192
This work is licensed under a Creative Commons Attribution 4.0 International License.