PLACE OF UKRAINE IN INTERNATIONAL SERVICES TRADE

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PLACE OF UKRAINE IN INTERNATIONAL SERVICES TRADE

Journal Title: Економічна теорія та право - Year 2019, Vol 1, Issue 36

Abstract

Problem setting. International economic organizations are forecasting the economic slowdown of the global economy. For Ukraine, there are risks of lower investment, a breach of the balance of payments and a devaluation of the national currency due to the irrational structure of exports. Recent research and publication analysis. Many scholars analyze the functioning of individual service markets, their impact on consumer choice, business development and the national economy as a whole. They propose to reform the services sector in Ukraine in line with the requirements of sustainable development. At the same time, there are insufficient studies of international aspects of Ukraine’s trade in services taking into account globalization challenges. Paper objective is to determine Ukraine’s position in international trade in services, its role in countering of global risks of economic growth and foreign economic equilibrium. Paper main body. A long-term trend of growth of international trade in services is an essential feature of modern economic development. It is a logical continuation of the structural adjustment of post-industrial economies in favor of services. Among the factors influenced this process internationalization and globalization should be mentioned. The growth of export-import services has also increased due to the periods of long economic growth in developed countries (especially in 2015−2018), as well as the steady economic growth of the Asian region. This contributed to the increase in the standard of living of citizens and their demand for a wide range of services. The role of international trade in services is due to its impact on national economies in general, business organizations and citizens, and the society of each country. In recent years, the trade balance of Ukraine’s services is active in contrast to the trade in goods. However, the share of services remains small compared to the share of goods in the overall structure of Ukraine’s foreign trade. Moreover, services that are close to material production are prevailing. These are transport services and services for the processing and export of material resources. At the same time, the export of pure, non-material services lags far behind, which does not indicate post-industrial trends. The growth rates of transport services in recent years are also negative, with the largest share in their structure of the pipeline transport services, which are subject of significant risks in connection with the construction of the North Stream 2 pipeline. There are questions to some points of the geographic structure of Ukrainian export of services. Almost 8 % of total amount is the export of services related to offshore business. Among the positive trends in restructuring of Ukraine’s exports should outline the accelerated growth of computer, information, professional and consulting services. The export of IT-services is increasing, especially in the EU. Great potential includes the export of tourist services. Ukraine also needs to participate in meeting international demand for medical and educational services, because it is growing, but the cost of these services in the world on average is increasing too. There is an opportunity to offer a decent quality of services, but at lower prices. The competitive advantages of medical tourism in Ukraine should be sought in the use of exclusive natural sources for treatment and rehabilitation. Conclusions of the research. An urgent task that will prevent Ukraine’s economy from trapping of global challenges is active participation in international trade in services. It is necessary to look for competitive advantages and to increase the export of pure services, especially IT services, as well as business, educational, medical and tourist services. The small business can provide diversification of exports. The actual directions are also the proliferation of cashless trade in services and the development of on-line trade, and the removal of trade barriers for the international movement of services, promotion of secure digital payments. It is necessary to create of an export strategy for Ukraine, which will provide institutional support for the promotion of advanced services in foreign markets with the support of the state. The main abstract of the article Abstract. The article is devoted to the role of international trade in services for the development of the national economy and business. The structure of Ukrainian exports of services, the ways of its restructuring with the aim of maintaining positive rates of economic growth and an active balance of payments in the context of growing globalization challenges are analyzed.

Authors and Affiliations

Т. М. КАМІНСЬКА

Keywords

services; international trade; export; balance of payments.

EP ID EP566426
DOI 10.31359/2411-5584-2019-36-1-27
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