PRIORITIES AND MECHANISMS FOR BALANCING THE FOREIGN TRADE IN AGRICULTURAL PRODUCTS BASED ON COMPLEMENTARITY

Abstract

The research paper aims at carrying out a systematic analysis of the complementarity of foreign trade in agricultural products and to substantiate on this basis the priorities for the expansion and balancing of Ukrainian agricultural exports at the micro, macro, and mezzo-levels. The concept of complementarity of foreign trade is defined as the level at which the economic systems of different countries are balanced on the basis of mutual complementarity of the commodity structure of export and import and effective participation in the international division of labour. The methodological approaches to the study of complementarity of foreign trade are systematized. The article uses a complex approach to the analysis of foreign trade relations in the agrarian sphere and the extent to which it is balanced. The main trends and features of the development of Ukrainian foreign trade in agricultural products are determined. It was found that the imbalance of the foreign economic sphere in the agricultural sector is manifested in the dominance of export activities of large agricultural holdings, the monocultural nature of agricultural production and export, and ineffective institutional support of small farmers and agrarians. An empirical assessment of the complementarity of Ukrainian foreign trade in agricultural products has been carried out using complementarity indices, indices of revealed comparative advantage, and applying the method of cluster analysis. The conducted calculations proved that the Ukrainian agricultural sector has a significant unused potential for the development of exports on the basis of complementarity. A set of priorities of balancing foreign trade in agricultural products based on complementarity are substantiated, in particular, the following: forming a system for monitoring the complementarity of Ukrainian foreign trade in agricultural products; concluding and comprehensively supporting the implementation of interstate agreements on the development of mutually beneficial trade in complementary products, including on a barter basis; providing support for export development of small and medium-sized enterprises, and for small-scale production; enhancing diversification of the assortment of agricultural exports of Ukraine, especially in the niches of craft and organic products; supporting complementary foreign trade relations at the level of individual regions of Ukraine; providing a strong and efficient consulting support for exporters, giving assistance in the process of finding foreign partners and entering foreign markets.

Keywords

• complementarity
• revealed comparative advantages
• agro-industrial complex
• foreign trade
• competitiveness
• institutional support