Baltic Journal of Economic Studies (Aug 2023)
SOCIO-ECONOMIC DEVELOPMENT OF UKRAINE IN THE GLOBALIZED WORLD
Abstract
Since economics is the study of how a society organizes its money, trade, and industry, the social question is at the heart of this science. The objective of the paper is to substantiate the vital necessity of improving the economic and social indicators of Ukraine by implementing social, industrial, foreign trade policies so that the economy is restructured, the domestic production and consumption are developed, the national technological value-added chains are managed, the exports of higher-value-added goods are intensified and diversified to ensure sustainable development of the state where people and their rights are placed at the center of the national economy system functioning. Methodology. The data, taken from the official site of the State Statistics Service of Ukraine, served as the information source for using various methods, e.g.: mathematical, statistical, etc., which resulted in the analysis of the social and economic indicators of the economy of Ukraine, as well as its foreign trade: GDP, population, unemployment rate, average monthly nominal wages, merchandise exports by product, dynamics of exports of goods to main trading partners, etc. Results. The indicators examination allows to conclude that some progress has been made during the period of 2016–2021, compared with that of 2010–2015 in terms of socio-economic and foreign trade development of Ukraine which can be explained by entry into force of the DCFTA; nevertheless, the social issue needs to be confronted by the Ukrainian government: the elaboration and implementation of the industrial and trade policies, as well as the social policy in compliance with the EU standards, will contribute to greater efficiency of Ukraine in the globalized world and eventually eliminate the main cause of the problem: deindustrialization of highly open, financially & technologically dependent economy. Practical implications. It’s substantiated that the system of taxes and subsidies, tariff and non-tariff instruments should be aimed at the rebuilding of domestic manufacturing capacity in order to reduce poverty, to create well-paying jobs, to enhance the quality aspects of the labor force. Value/originality. The country is to improve the socio-economic situation by creating conditions for introducing and managing the national technological value-added chains, as well as diversifying and intensifying exports of goods with higher value added.
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