Determinants of Domestic Trade Development in Ukraine

Abstract

Intensification of globalization processes and transition of economically developed countries to the post-industrial stage of development determine the modern vector of structural and institutional transformation of the domestic market as a whole and trade in particular. The article is aimed at estimating the determinants of the development of domestic trade in Ukraine. The indicators of internal trade development are analyzed. The regional structure of retail turnover of Ukraine is provided. The risks and threats of foreign trade liberalization for domestic producers are characterized. The share of imported food and non-food products sold through the trade network of enterprises is computed. The commodity structure of imports by wide economic categories is provided. The risks of growing import dependence of the Ukrainian economy in terms of goods for final and intermediate consumption are identified. It is substantiated that one of the important vectors of improving the efficiency of the national economy is structural changes in the sphere of domestic trade. The prospects for the development of domestic trade in Ukraine are generalized, including those caused by the impact of the COVID-19 pandemic. It is argued that the coronavirus crisis is one of the key challenges for business in modern conditions, covering all its aspects – from sectoral to global supply chains. The priority of digital transformation of enterprises in order to protect their own position from high technologies of competitors and the opportunity to take advantage of greater functionality of digital business models with their adaptability and performance is determined. It is substantiated that the processes of globalization in the context of the coronavirus crisis have slowed down, which can lead to significant changes in the structure of the market, affect the distribution of online and offline trading. The prospect of further research in this direction is the forecasting of challenges and threats of the post-pandemic development for the domestic market of Ukraine.

Keywords

• domestic market
• trade enterprises
• import dependence
• internal trade
• wholesale trade
• retail trade