The National Transport University Bulletin

Abstract

The article is focused on defining the problems and prospects of Ukraine's participation in the global division of labor based on the analysis of international trade. Object of the study – Ukraine’s international trade. Purpose of the study – to determine, based on the analysis of Ukraine's foreign economic activity, the problems of the national economy's participation in the new international division of labor and to identify promising directions for strengthening Ukraine's position in the global division of labor. Methods of study – methods of economic, system, historical and graphical analysis. Today Ukraine stands out in the global division of labor mainly as an exporter of raw materials of the agricultural complex and the metallurgy, and as a transit bridge between Europe and Asia, which indicates the insufficient efficiency of the country's participation in the division of labor. Taking into account the objective realities of the functioning of Ukraine’s economy, the state of the world economic system development and the level of world’s technological development, in order to improve Ukraine’s positions in the division of labor, it is advisable for country to develop the intangible part of high-tech production, i.e. the sphere of IT services, as well as to maintain the sufficient level of export of industries that currently prevailing in the country's international trade. To develop the export of IT services, the state needs to continue the implementation of previously agreed measures, as well as create new support programs, stimulate the creation of IT hubs based on the cooperation of sector specialists, and export digitalization services to other countries. Preservation of food exports is conditioned by Ukraine's significant role in ensuring world food security and can be achieved through the active development of the food industry accompanying the agricultural complex and the establishment of its products export abroad. The export of metals and mineral products will probably not be able to be maintained at the level of previous years due to objective circumstances, therefore it is expedient to redirect the products of these industries to the domestic market, which will save jobs and provide certain industries of Ukraine with raw materials. Ensuring the realization of the transit potential and compensation for losses in the transport sector is recommended to be achieved through the country’s involvement in regional alliances and transport organizations. The results of the study can be used in the development of Ukraine’s recovery program and the strategy of strengthening the country's position in the global division of labor. Prospective areas of further research: forecasting the impact of the development of the IT sphere on Ukraine’s competitive positions in the new international division of labor; creation of a strategy for the development of processing industries adjacent to raw materials sectors (food industry, military industry); search for ways to preserve and fully use the transit potential of the country.

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