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Development of the Processing Industry of Ukraine as a Direction of Restructuring the National Economy
Tur O. V.

Tur, Olena V. (2023) “Development of the Processing Industry of Ukraine as a Direction of Restructuring the National Economy.” Business Inform 11:202–208.
https://doi.org/10.32983/2222-4459-2023-11-202-208

Section: Industrial Economics

UDC 330.341.42

Abstract:
The aim of the article is to generalize the problematic aspects of the functioning of the processing industry of Ukraine. An analysis of theoretical approaches to the positioning of the processing industry as a factor of value creation for industrial products, which, through export, ensures the emergence of added value of other types of economic activity in foreign markets, is carried out. It is noted that against the background of in-depth processing of raw materials, the added value of finished products is growing at a significant pace and ensures an increase in gross domestic product and, accordingly, the development of the national economy. The properties of the processing industry are generalized, which consist in the production of orders for certain types of services, in particular research, information, educational, financial, etc., that ensures the development of innovations for the formation of new sectors of the economy. It is concluded that structural changes in the processing industry generate a transformation of the country’s economic system. Emphasis is placed on deindustrialization as a process of reducing the proportion of industrial activities in the structure of the economy and the share of processing industry in the structure of the country’s industrial sector, which has two forms. The first one is a decrease in the volume of industrial production, the second one is a slowdown in the growth rate of industry compared to other types of economic activity. It is noted that Ukraine is characterized by the first form of deindustrialization, characterized by such main problematic aspects as deterioration of the structure of the economy and negative shifts in the commodity structure of exports. The deterioration of the structure of the economy is determined by the inability to produce products with a high share of value added, which is accompanied by a significant decrease in the share of the processing industry in the structure of gross value added of the national economy, as well as a decrease in the level of manufacturability of industrial products. Negative shifts in the commodity structure of exports are reflected in the rapid decline in the volume of exported manufacturing products against the background of an increase in exports of raw materials. Prospects for further research in this direction are the formation of effective means for the revival of the country’s processing industry, in particular on the basis of the concept of the Novel Industrial Development of Ukraine.

Keywords: processing industry, restructuring the national economy, structure of the economy, commodity structure of exports, industrial development.

Fig.: 1. Tabl.: 3. Bibl.: 10.

Tur Olena V. – Candidate of Sciences (Economics), Senior Research Fellow, Department of Macroeconomic Policy and Regional Development, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkiv, 61166, Ukraine)
Email: [email protected]

List of references in article

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Kyzym, M. O. et al. “Otsinky torhivli dodanoiu vartistiu u svitovii ekonomitsi“ [Estimating Trade in Value Added in the World Economy]. Problemy ekonomiky, no. 4 (2018): 19-29. DOI: https://doi.org/10.32983/2222-0712-2018-4-19-29
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