Ph.D. in Economics, senior lecturer of the Department of international economic relations
of Kyiv National University of Trade and Economics
IMPORT DEPENDENCE OF THE DOMESTIC MARKET OF UKRAINE
Background. The proposed scientific article is devoted to actual issue of formation of effective system of foreign trade regulation, particularly imports. Consideration of the problem is based on the study and analysis of volumes of import consumption in Ukraine’s economy and the impact of import component on the development of the internal market.
Review of the scientific sources in this area indicates that among scientists there have been discussions regarding the impact of import on the economic development. In a small number among the existing works the issue of the impact of tariff and non-tariff restrictions on the competitiveness of domestic products is investigated. However, the role of import component in the development of the internal market requires further research.
The aim of the study is to assess the import component in the domestic market of Ukraine.
Materials and methods. The following research methods were applied in the scientific article: axiomatic (in the justification of certain provisions as a source of axioms), statistical (to establish the dynamics of the main indicators of development of Ukraine’s foreign trade, commodity and geographical structure of import), correlation and regression (for construction of dependence between the dynamics of the exchange rate of the national currency and export volumes). The works of domestic scientists and materials of the State statistics service of Ukraine became the information base of research.
Results. The dynamics of foreign trade of Ukraine has been analyzed and the trade openness indicators of the national economy are calculated, the commodity and geographical structure of import to Ukraine are estimated. The causes and consequences of the excess of import over domestic production are determined. The directions of use of import on targets of intermediate, final consumption and gross savings are investigated. Correlation analysis of the change in the exchange rate of the national currency and export volumes is performed and found that in the current circumstances devaluation is not conducive to export development. The potential selective import substitution in the Ukrainian economy is identified.
Conclusion. Among the most significant problems in terms of the contribution of import to the development of the internal market should be highlighted the following: the excess growth of import over its own production, which is inferior to foreign analogues by price and quality in terms of competitiveness; the increasing dependence of Ukrainian industry on imported goods for intermediate consumption; decrease in the share of import in gross accumulation, which indicates a reduction in the supply of the newest and the most advanced machinery and equipment from abroad, which leads to innovative regression in import of goods in Ukraine. Exchange rate fluctuation affects directly the cost of imported goods and in such conditions the devaluation of the national currency can become the stimulating factor for price competitiveness of domestic products. The practical significance of the obtained results lies in the possibility of using the proposed in the article theoretical and practical research on the improvement of the regulation mechanism of goods import in Ukraine.
Keywords: import, domestic market, import substitution, import dependence, import regulation, the structure of the import use.