Pelehan D.A., Gerashenco J. O.
Kremenchug State University named after Mikhail
Ostrogradskii, Ukraine
Ukraine foreign trade economic
trends
At the
present stage of world economy development the economic situation of a state is
determined by such important factors as internal resources and the degree of
its integration into the world economy. One of the most important factors of
Ukraine's integration into the global economy is a mechanism for sustainable
development of exports, which under present-day conditions is dependent on the
capabilities of domestic enterprises to manufacture and sell products that meet
the requirements of the world market for quality, price and service [3].
Today
the problem of improving export capacity of Ukraine is very urgent. Exports of
Ukrainian goods and services can ensure the inflow of funds required to
undertake full reform of the economy and improve social welfare. But there are
several problems that must be addressed as soon as possible. In order to solve
the problems they need to be thoroughly studied and analyzed, their origins and
causes must be identified.
The
objective of research is to assess the current state of foreign trade and
development issues, and also to identify measures for rational use of export
potential of Ukraine.
For
2009 exports of goods amounted to 39, 702, 9 million US dollars, imports - to
45,435,6 million US dollars, which made 59.3% and 53.1% of the volume of previous year.
Export-import coverage ratio was 0, 87 (for 2008 - 0, 78). Foreign trade operations
were performed with the partners from 213 countries [4].
Imports
from CIS countries made 43.3% to its total volume, Europe 35.7% (including EU
countries - 33.9%), Asia - 14.4%, America - 4.8%, Africa -1.4%, Australia and
Oceania - 0.3%.
Considering
all the above both positive and negative trends in the future development of
export potential of Ukraine can be specified [2]:
- revival in global demand for domestic
high-technology products. Engineering and instrumentation products become
increasingly visible commodity group in trade with major partners. Further
development of international scientific and technical cooperation involving the
productive capacity of Ukraine fully contributes to it. In particular, over the
past year several projects concerning the launching of new manufacturing based
on the existing automobile production facilities and the like have been
implemented;
- active exploration of new sales markets for
Ukrainian exporters. Domestic manufacturers are quite sensitive to new opportunities
of entering the markets access to which was liberalized only recently. The
facts suggest that trading presence also outspreads on such traditional markets
as CIS countries, particularly Russia;
- increase in the cost of domestic industrial
products, caused by energy products price rise, which greatly weakens the
competitiveness price factors. And uncertainty about energy products prices,
even at the medium-term prospect, complicates tactical financial planning at
domestic enterprises, and, consequently, does not guarantee stable cooperation
with foreign partners;
- curtailment of export potential of row
materials-oriented industries, which makes it impossible to retain row
materials-oriented model of export development of Ukraine. The trends of recent
years show a decrease in significance of the metallurgical industry in Ukraine,
which is a key factor of exports growth and GDP growth on the whole.
Under
such circumstances it is not easy for Ukrainian enterprises to find their place
in the global economic complex, the more especially as the world markets of
basic commodities have already been formed. Traditionally, the solution to the
issue comes as a result of trade liberalization.
But
liberalization that was caused by Ukraine's entrance into World Trade
Organization has ambivalent results, since in recent years there has been a
negative trade balance.
Consequently,
the structure and dynamics of foreign trade do not get in line with the export
opportunities of our state. Raw materials and products with low degree of
processing dominate in export structure. State regulation of foreign economic
activity was liberal in recent years, though, on the other hand, the
development of export is hampered by substantial non-trading (non-tariff)
restrictions.
The
main factors that hinder the development of export potential are: instability
of regulatory framework; complicated customs procedures; underdevelopment of
financial sector and market institutions.
The
main priority in the development of Ukraine's export potential and the
expansion of market representation is the increase in the competitiveness of
Ukrainian products.
In our
opinion, considering the current state of Ukrainian economy and the relevance
of the issues of foreign trade potential the following measures must be
assumed:
- to ease customs formalities;
- to create the conditions for exporting
enterprises to apply the results of scientific research to the full extent, as
is done in developed countries, and for the introduction of technological
innovations;
- to carry out full modernization of domestic
industry to improve product quality and competitiveness;
- to limit unwanted exports by means of
differential rates of export duty in order to eliminate the difference between
the average price on the world market and the average price on the domestic
market [1];
- to increase the possibility of using
exchange rate factor to promote exports;
- to train qualified personnel to work in
exports sphere at the enterprises;
- to provide tax benefits for exporters.
Among
other areas of financial assistance, which may have significant stimulating
effect on domestic exports, there is a good reason to consider the possibility
of putting the following activities into practice:
- providing state guarantees for the banks
that finance exports on the basis of commercial credit;
- providing loan guarantees for participation
in international tenders and auctions;
- insurance of operations for foreign markets
development;
- providing tied loans for the countries
which import Ukrainian products (which is in common practice of Eximbanks in
Germany, Japan and other countries).
In view
of chronic budget deficit, the most rational, in our opinion, is application of
domestic machinery export stimulating measures.
The
implementation of these and other events in the context of Ukraine export
potential development will be possible only on condition that reforms in
economic, legal and social spheres are carried out.
The
literature list:
1.
Стеценко Ж. В., Механизм развития и
реализации экспортного потенциала в Украине/ Стеценко Ж. В.// Экономика и
государство. – 2008. – № 8. – С. 47-49.
2.
Чернобай Л.И., Основные тенденции и перспективы развития
экспорта отечественной продукции/ Чернобай Л.И., Вацик Н. О.// Вестник
национального университета «Львовская политехника». – 2007. - № 559. –
С.173-185.
3.
Чернега О. Б., Внешняя торговля Украины: основные
параметры, структурные особенности и географические векторы развития/ Чернега
О. Б., Билозубенко В. С.// http://www.nbuv.gov.ua/portal/Soc_Gum/Tiru/2008_25_26/19.
4.
Внешняя торговля Украины товарами за январь-октябрь 2009
года – экспресс – выпуск. – 11.12.2009. - № 260. - http://www.ukrstat.gov.ua.