Modernization of Industry through Import Substitution and Localization of Production in Mechanical Engineering

Булєєв, І П; Брюховецька, Н Ю; Chorna, O.

doi:10.12958/1817-3772-2021-1(63)-37-51

Cited by 4 publications

(1 citation statement)

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“…Localization of production, in particular in the field of mechanical engineering, is one of the most relevant topics of discussion in the scholarly research, political, and expert economic environment of Ukraine. In [9], the hypothesis of establishing a special regime for Ukraine for a certain period and introducing production localization regulations for public procurement has been substantiated. In some studies of domestic researchers, the localization of production is considered an economic category that is placed against dependence on import.…”

Section: Problematic Issues Of Localization-based Development Of Mech...mentioning

confidence: 99%

Problematic Issues of Localization-Based Development of Mechanical Engineering in Ukraine

2023

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Introduction. Mechanical engineering in synthesis with IT forms the economy sector with the highest potential for creating innovations, which in the postwar recovery should become major drivers of the socio-economic development of Ukraine and ensure itsadequate competitive ability in the world market.Problem Statement. The critical state of mechanical engineering in Ukraine requires the use of effective tools to stimulate the development of production, in particular on the basis of localization. The recovery plan of Ukraine foresees the localization of at least 60%.Purpose. The purpose of this research is to substantiate proposals for stimulating the localization-based development of Ukraine’s mechanical engineering in the context of strengthening the national economic security.Material and Methods. Economic analysis; the method for the calculation of localization, the authors’ method for determining the production localization level. The cost-output datasheets for Ukraine and the OECD have been used as information base of the study.Results. The consequences of the negative effect of economic globalization on the domestic mechanical engineering enterprises in the absence of the state protectionism have been analytically established. A new methodological approach to determining the production localization level has been developed and tested. It is based on calculating the share of the domestic component in each basic segment of the sectoral cost structure. The authors’ proposals on the non-tariff stimulation of the development of Ukraine’s mechanical engineering corporations on the basis of localization, in order to defend the interests of domestic manufacturers in terms of the elimination of the consequences of the Russian aggression and the postwar recovery of Ukraine’s economy, structural transformations and increased competition in world markets have been substantiated.Conclusions. The authors’ approach to calculating the production localization level allows determining the key elements (in terms of types of economic activity) of the production cost and the weight of the domestic component in them while forming the strategic nomenclature of mechanical engineering in Ukraine.

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Section: Problematic Issues Of Localization-based Development Of Mech...mentioning

confidence: 99%

Problematic Issues of Localization-Based Development of Mechanical Engineering in Ukraine

2023

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Public procurement of light industry products under martial law conditions

Zavgorodnia,

Sheludko

2024

Ukr. socìum

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The article is devoted to the importance of stimulating domestic demand by the state and substituting the import component in public procurement, which will contribute to economic self-sufficiency, sustainability, extension of internal chains of added value, and the creation of new jobs. It is noted that the products of light industry are used in all spheres of life of the population and the national economy. Authors underline that the activity of light industry has a significant multiplicative effect on the development of related industries and spheres, which is important for defense capability and the reconstruction of production and infrastructure facilities. The subject of the study is the implementation of the policy of ensuring the priority of support for Ukrainian producers and stimulation by state bodies of demand for domestic goods in conditions of martial law, improvement of the procurement planning system. Authors try to substantiate stimulating measures for the growth of state procurement of light industry products by providing advantages to domestic producers. Changes in state procurement of light industry products under martial law were studied and assessed. The article uses a number of methods: analysis and synthesis – to determine priorities in state procurement of light industry products, deduction and induction – to establish cause-and-effect relationships and organize objective knowledge about relevant economic processes and phenomena in order to ensure the stability of the national economy under war conditions. Comparative and tabular methods were also used, which made it possible to outline the main results of the research, to summarize and systematize the materials. Multiplicative effects were calculated on the basis of the table “input-output at basic prices”. State purchases of light industry products through the Prozorro system were analyzed. A number of problems were identified that prevent domestic enterprises from participating and winning in public procurement. Directions and measures for stimulating the involvement of domestic enterprises to participate in public procurement and import substitution in Ukraine, improving the procurement process are proposed.

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Post-war economic recovery: main factors of impact and global experience for Ukraine

DANYLENKO¹,

Yershova²

2023

Fìnansi Ukr.

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Introduction. The ongoing hostilities in Ukraine reduce Ukraine's potential for independent sustainable economic growth. The sovereign debt burden is significantly increasing, production facilities are being destroyed, and with them the industrial potential of the country, the possibility for a quick return of the majority of forced refugees to Ukraine from abroad is declining. The response to these challenges should include the application of the most active methods of implementing state policy aimed at ensuring the economic independence and well-being of Ukraine. The prerequisite for overcoming the identified problems will be not only the end of hostilities on the territory of Ukraine, but also the implementation of a system that encourages businesses to recover, increase the profitability of their production, as well as the concentration of the state’s attention on the achievement of priority goals, among which, of course, the main one will be ensuring security and social and economic recovery of the country. Problem Statement. Determining the role of the state in post-war reconstruction, substantiating the possibilities of applying instruments of state impact on the development of the economy of Ukraine. Purpose. Substantiating, taking into account the specifics of the pre-war development of the economy of Ukraine and based on the world experience of post-war recovery, an effective state toolkit, the implementation of which will not only speed up the recovery of the economy, but also ensure the quality of the development. Methods. The research was conducted on the basis of a systematic approach, the principles of objectivity and critical analysis, systematization of analytical and statistical data, and scientific insight into the consequences of external and internal factors affecting the development of the economy. Results. The main effective tools that contributed to restarting post-war economies, changing their structure and rapid economic development are identified. As part of the analysis of domestic state initiatives to restore the economy of Ukraine, priority steps have been outlined that will contribute to the intensification of business activity and ensure its broader access to long-term debt capital. Reasonable expediency of implementation of indicative planning, reform of the state policy of attracting foreign investments, internal system of stimulating business activity, implementation of investment risk insurance, etc. The need to revise the priorities of the country's economic development, which would take into account not only current realities, but also focus on the strategic goals of Ukraine's future, was emphasized. Conclusions. While aiming at the recovery of the national economy, the state faces many complex tasks, the solution of which requires the concentration of efforts of both the government and society in general. The world experience of post-war reconstruction proves that even after tragedies, it is possible to establish a modernized and prosperous state. The implementation of such aspirations can be materialized on the base of a clear vision and planning of the future of the country with the step-by-step implementation of the intended plans, which must definitely take into account the systemic problems that the economy had accumulated in the past (low level of fixed investments, outdated production base, low innovativeness of enterprises, practical lack of access to cheap long-term credit, unattractive investment environment, insecurity of property rights, etc.). The post-war recovery plan should be based on the principles of building a market economy, solving systemic problems, stimulating healthy competition and developing high-techindustry.

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Modernization of Industry through Import Substitution and Localization of Production in Mechanical Engineering

Cited by 4 publications

References 4 publications

Problematic Issues of Localization-Based Development of Mechanical Engineering in Ukraine

Problematic Issues of Localization-Based Development of Mechanical Engineering in Ukraine

Public procurement of light industry products under martial law conditions

Post-war economic recovery: main factors of impact and global experience for Ukraine

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