Integration of Ukraine into global production and sales chains in the field of agro-industrial complex: institutional aspect

Gromenkova Svitlana
PhD in Economics, Associate Professor, Department of International Economics, Kyiv National Economic University named after Vadym Hetman, Ukraine, e-mail: svetlanagromenkova@gmail.com, ORCID ID: https://orcid.org/0000-0003-1711-447X

Cite this article:

Gromenkova, S. (2022). Integration of Ukraine into global production and sales chains in the field of agro-industrial complex: institutional aspect [Intehratsiia Ukrainy do hlobalnykh vyrobnycho-zbutovykh lantsiuhiv u sferi APK: instytutsiinyi aspekt], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1-2 (80-81), pp. 40-49.

Abstract

The purpose of the article is to determine the directions of institutional support for integration of Ukrainian manufacturers of agro-industrial products into global chains of added value in the context of solving the tasks of increasing the efficiency of the industry, developing and expanding its export potential, as well as augmentation the investment attractiveness of the domestic agro-industrial complex. The current state of the export and investment activity of Ukrainian agricultural sector is analyzed; a general characteristic of its involvement in global production and sales networks is provided. The main focus is on institutional promotion of participation in global agri-food networks, including areas of improvement of the country’s foreign trade policy, the possibility of integration into global chains through participation in regional trade agreements. It is established that for Ukraine, as well as for many other countries of the world, it is extremely important to ensure the small farms integration into markets and supply chains. In this regard, the need for active implementation of digital technologies in the agri-food business is substantiated, which can have a significant positive impact on the conditions of competition in the market and on ensuring the necessary inclusiveness. It is noted that expanding the coverage of digital technologies requires certain state support and introduction of public-private partnerships. It was emphasized that it is necessary to actively develop the appropriate ICT infrastructure, improve users’ skills in using Internet technologies, develop a regulatory framework that will promote innovation and consider the risks associated with digitalization, and expand participation in international cooperation. It is concluded that globalization significantly changes approaches to organization of agricultural products and food supply in the world, and this should be taken into account at the state level for ensuring the effective integration of Ukrainian agricultural manufacturers into global production and sales networks. It is proposed to focus attention on the standards unification, the development of cooperation within the framework of regional trade agreements, and efforts activation for transition to digital technologies in the agricultural sector.

Keywords

global supply chains; value added; exports; agriculture; food industry; trade policy; foreign direct investment; digital technologies.

JEL classification:F100; F150; F130; F230; E610; DOI: https://doi.org/10.33987/vsed.1-2(80-81).2022.40-49

UD classification: [339.922:338.436]:339.564(477)

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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