Estimation of Resilience of Ukrainian Industry to Shock Influences: Comparative Analysis

Abstract

The study of resilience of the industrial sector to shock influences is especially urgent taking into account the constant instability of the economic and political environment in Ukraine and in the world. The aim of the paper is to determine the resilience level of Ukrainian industry to shock influences for improving state support programs for industrial production and decreasing negative results of shock influences on economy of the country. Thus, the object of the study is Ukrainian industry. Methods of comparative analysis have been used in the paper. Based on parameters of economic safety, there have been determined main indicators that allow to estimate the resilience level of industry to external and internal shocks. These indicators include estimation of the condition of industry of the country, namely: its ability to keep balance and to renew itself after shocks, general parameters of economic effectiveness such as labor productivity, labor intensity, profitability of operational activity, indices of the level of technological support of industry. Resilience to shocks of the external sector is presented by the analysis of indicators of export-import operations. For objectivity of the conducted analysis, indicators of Ukrainian industry have been compared with European countries. According to the results of the conducted analysis, the conclusion has been made about the unstable condition of Ukrainian industry, because eleven of thirteen analyzed indicators are beyond threshold values, and only two ones: labor intensity of industrial production and a share of manufacturing industry in GDP are lower or within a threshold value. For providing the growth of industrial production in separate regions of Ukraine, there it has been offered to create a base productions in industry. The following base productions have been determined in Ukrainian industry: production of engines of different types, semiconductors and microelectronics, constructor materials, diverse products of inter-branch destination.