Determinants of Import Dependence of the Ukrainian Economy

Abstract

The urgent issue of the formation of an effective import control system with the aim of stimulating the domestic industrial production and expanding the export potential of Ukraine is considered. The study is based on the analysis of the volume of import consumption in the economy of Ukraine. The review of scientific sources in this area indicates that among scientists there are discussions about the impact of imports on economic development. The issues of the influence of tariff and non-tariff restrictions on the competitiveness of domestic products are investigated only in a small number of the existing works. At the same time, further research is needed on the trends in and implications of the growing import dependence of the Ukrainian economy. There are analyzed the trends in foreign trade of Ukraine; commodity and geographical structure of imports; direction of their use for intermediate and final consumption, and gross accumulation. The causes and consequences of the excess of imports over the domestic production are determined, and indicators of the openness of the national economy are calculated. The possibilities of import substitution in certain economic activities are evaluated. The priority of combining the strategy of import substitution with the export orientation of industrial production on the basis of effective export promotion in foreign markets is grounded.

Keywords

• imports
• domestic market
• import substitution
• import dependence
• import control
• import structure
• export promotion