Minimizing risks of integrating Ukrainian industry into global value chains

Abstract

Relevance of the research topic Global value chains (GVC) are the dominant element of world trade, which incorporated various stages of processing into global supply chains of different development levels countries. The potential to include of Ukrainian producers into the GVC is very high, but not fully exploited now. Only innovative, technologically equipped, certified companies with a reliable business reputation have a chance to enter GVC. Formulation of the problem. The challenges of the coronavirus pandemic increase the importance of justifying new approaches to opportunities for Ukrainian industry, in particular, for successful integration into the GVC. Selection of unexplored parts of the general problem. Changes in the organization of world trade have occurred in the context of the coronary. This is due to disruption of intermediate processing supply chains, shifting to shorter chains and control increasing over the quality and safety of products in compliance with sanitary standards. This opens up new opportunities for Ukrainian producers, while the problem of reducing risks and removing obstacles remains insufficiently studied. Setting the task, the purpose of the study. The study aims to highlight key risks and development of a set of measures to minimize them while integrating Ukrainian industry in GVC. Method or methodology for conducting research. The work used general scientific methods: system analysis, abstract logical, expert assessments, as well as special research methods: statistical comparisons, groupings, sampling (to risk identification in the GVC integration process). Conclusions. Analysis of the development of GVC in the context of post-pandemic constraints made it possible to identify key risks and obstacles for Ukrainian producers, included among them are a high level of vulnerability was established from tightening control conditions and strict restrictions on supplies; The digital and technological gap in accordance with world standards; excessive concentration of the import component in selected product categories, causes dependence on foreign suppliers; a huge shortage of capital; decrease in profitability; deterioration of financial stability and solvency.

Keywords

• global value chains
• post-pandemic constraints
• risks
• exogenous and endogenous barriers
• diversification
• integration
• digitalization
• industry
• value added