GLOBAL IMPACT AND REGIONAL DIMENSIONS OF SERVICES MARKET DEVELOPMENT IN UKRAINE

Abstract

In the context of decentralization processes in Ukraine, the development of perspective segments of the service sector that can be oriented at an external domestic or foreign consumer, should be in the focus of attention of local authorities and self-government bodies. For this reason, the purpose of the paper is to explore the theoretical foundations and practical realities of developing regional service markets in Ukraine, to study the influence of national and global factors on the tertiary sector development. Methodology. The study is conducted with the application of general scientific and specific methods of economic research. In particular, the methods of analysis and synthesis were used in assessing the structure of the services market according to statistical observations. The classification method is applied in the author's vision of division of services. The use of induction and extrapolation methods made it possible to distinguish the general features of services, based on certain occasions and market indicators and to extend them to a general structure. Results show the current state and development specifics of the services market of Ukraine in the regional dimension and the prospects of export specialization of its regions and trade in services in the context of Ukraine’s participation in the WTO and association with the EU. Particular attention is paid to the study of the development of services market at the regional level, since the functioning of the services market has a clearly identified regional orientation, which causes significant differences in the development of entrepreneurship in the service sector at both the regions of the global economy, country and the local administrative and territorial entities. Some types of services are "tied" to the territory (for example, tourist locations), others have to be close to potential consumers (utility, personal, household services). The financial services sector is excluded from the subject of the study, which is explained by higher globalization of this type of services and much lower relation to regional development. Practical implications. The study of services sector development will be useful for local and national authorities while taking measures on local development programs. Value/originality. The study takes into account both local and global factors influencing the services market development, which is especially valuable in the context of Ukraine’s aspirations of integration to the European Union.