Scientific and practical journal
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Regional Economy
   



Journal Regional Economy -- re2018.01.017

Repository of Institute of Regional Research Repository of Vernadsky Library UDC 332.122:338.45(477); JEL L60
Ishchuk, S. O. (2018). Promyslovist' rehioniv Ukrayiny: tendentsiyi i problemy rozvytku [Industry in Ukrainian regions: trends and problems of development]. Rehional'na ekonomika - Regional Economy, 87 (1), 17-29. Retrieved from http://re.gov.ua/doi/re2018.01.017.php. [in Ukrainian].
Sources: 16

Authors

Resume

Possessing the considerable industrial potential and at the same time transit, natural raw material and human capital, Ukraine still lags behind the Member States of the European Union (EU) in terms of output and the gross value added of industry. The main prerequisites for the poor competitiveness of the domestic industry are the use of outdated technologies and the critical degree of deterioration of fixed assets as well as low efficiency of its operation.
The purpose of the article is to identify the main trends and problems of industrial development in Ukraine based on the evaluation of the dynamics of the indicators’ values that systematically characterize the level of the industrial sector functioning in the national economy in a regional context.
The results of the analysis showed that industry remains the leading type of economic activity in Ukraine with a share of 31.4% in the volume of sales of the products (goods and services). At the same time, the share of industrial goods in total exports during 2011-2016 decreased by 16.2 percentage points (to 59.5%), and the share of non-current assets in the structure of assets of the industry – down to 45.6%. The growth rates of foreign direct investment in industry in 2016 were negative in 19 districts. By the share of implemented innovative products in the total volume of industrial products sold, Ukraine lags behind Poland almost 9 times.
In order to counteract the established negative trends in the development of domestic industry and to increase the level of productivity and profitability of the subjects of industrial activity in Ukraine, the implementation of a complex of organizational and economic and financial mechanisms in the following areas is required: an increase in the level of innovation activity – stimulation of the development of high-tech industries through their selective subsidization on the example of the EU member states, preferential lending and taxation, with the increase of the science-intensive products; activation of foreign direct investment attraction -increasing the access of industrial activity entities to foreign investment resources and raising the level of awareness of foreign investors regarding potential investment patterns; expansion of export potential – stimulation of export activity of subjects of industrial activity by providing them with support in the direction of improving the quality management system of industrial products and ensuring the international certification of production; reducing the cost of industrial products – improving the territorial organization of production and reducing the length of production and sales cycles in industry.

Keywords:

assets, development, efficiency, export, industry, innovation, investments, production

References

    
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