Doctor of Economics, Professor,
Professor of Economic Theory and Competition Policy Deaprtment of
Kyiv National University of Trade and Economics
PhD in Economics,Assistant Professor of Economic Theory and Competition Policy Department of Kyiv National University of Trade and Economics
INDUSTRY IN THE STABLE ECONOMIC DEVELOPMENT OF UKRAINE
Background. Stable development of the entire economy depends on the sustainability of industrial production to external and internal shocks, therefore, research of the foundations of achieving such stability is important, especially given the increasing global instability and internal threats to economic growth within Ukraine.
Analysis of recent research and publications showed that the research of the role and importance of the industry as one of the most important factors for sustainable socio-economic development was not carried out systematically, which is why this subject is relevant today.
The aim of the article is to clarify the current state of the industry of Ukraine as the main factor for sustainable socio-economic development.
Materials and methods. During the study the data of the State Statistics Service of Ukraine and scientific works on the development of the internal market and industrial potential of Ukraine were used. The methods of analysis and synthesis, systematic approach to analyzing sustainable socio-economic development of Ukraine were applied.
Results. Analysis of the industrial development of Ukraine, namely industrial production and financial performance of the industry, the number of employees in the industry demonstrates significant structural irregularity and mining industry dominating over processing one, indicating that the resource orientation of the domestic economy and production of goods with low added value. Thus, industrial production in Ukraine is becoming low-tech manufacturing, raw materials specialization is growing, while high-tech industries are being reduced or even almost completely eliminated that influences domestic market and low share of domestic production of goods. Low innovative activity of industrial enterprises, high fixed assets depreciation demonstrate the impossibility of ensuring sustainable growth of the industrial sector.
Conclusion. Vulnerable to shocks socio-economic system in which the role of industry is constantly decreasing has been formed over the past 25 years in Ukraine. To change the situation an active state influence on the economy is required in order to: attract foreign investment, upgrade fixed assets in the industry and develop the domestic market of Ukraine.
Keywords: sustainable socio-economic development, industry, processing industry.
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