XXI CENTURY TRENDS IN UKRAINE’S INDUSTRIAL COMPLEX DEVELOPMENT

  • Volodymyr Boreiko the International Economics and Humanitarian University named after academician Stepan Demianchuk
Keywords: industry, high-tech products, research, investment, innovation.

Abstract

The article reveals that the industrial complex plays an important role in the development of national economy. Here are concentrated the best fixed assets, used advanced technologies, produced significant amounts of products, are working millions of employees. It provides for the orders in related branches and produces for them machines and equipment.

In 1990, in the industrial complex of Ukraine was produced 50.7 % product, which was produced by Ukraine's economy, was created 36.0 % of gross value added, created in our country, was used 32.4 % of fixed assets Ukraine, was employed 30.6 % of the employed population.

However, behind twenty-five years of independence, its share in the production in Ukraine of goods decreased 1.5-2 times. In addition, the structure of products produced industrial complex of Ukraine in the XXI century has undergone significant changes. For twenty-five years of independence, Ukraine significantly has reduced or completely has ceased producing many kinds of high-tech products, which led to increase in the share of mining industry.

It is shown that in order to stimulate the attraction of investments by Ukraine, laws were adopted and privileges for manufacturers of high-tech products, but due to the instability of legislation, lack of legal protection of foreign investments and the crises, that accompany the national economy, the our country failed to restore industrial potential, which it had in the early nineties of the twentieth century. It is grounded, that Ukraine needs to develop and implement a set of measures to increase the attractiveness of the country's industrial complex for investors. Such measures should include the strengthening legal protection of the interests of foreign investors; the prohibition to the National Bank of Ukraine to set any restrictions on the use of foreign currency by foreign investors; increased expenditures of the State Budget Ukraine to finance scientific and research work; the exemption from taxation of income received by enterprises industrial complex of Ukraine from the sale of innovative products.

Author Biography

Volodymyr Boreiko, the International Economics and Humanitarian University named after academician Stepan Demianchuk

Doctor of Economics, Associate Professor, Vice-rector in scientific work 

Published
2017-10-23
Section
Economics, management of sectors and enterprises