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Economic and mathematical modeling of the dependence of the socio-economic sphere of Ukraine from external-economic factors

Author

Listed:
  • Larysa Savosh
  • Liudmyla Pavliuk
  • Pavlo Kravchuk

Abstract

The article examines the dependence of the level of development of the socio-economic sphere of Ukraine on foreign economic factors. The vector of Ukraine's development approved at the legislative level is integration into the European and world economy. Our country has significant competitive advantages, such as convenient geographical location, high level of natural resources, availability of labor resources, and so on. Given the historical features of the domestic economy, in particular, and Ukraine as a whole, integration processes not only have a positive impact on the domestic economy and the welfare of the population but also pose significant challenges and threats. This is the relevance of the chosen research topic of a scientific publication. The main indicator that characterizes the level of development of the socio-economic sphere of the country is the value of the gross domestic product. The main factors of foreign economic activity are exports and imports of goods and services, foreign trade balance, and foreign direct investment. The period from 2001 to 2020 was chosen for the study. The assumption of a high relationship between GDP and exports of goods and services was not confirmed in the study. As a result of research using economic and mathematical modeling, the high dependence of Ukraine's GDP on imports of goods and services has been confirmed. These results of the study are explained by the structure of domestic imports, which is dominated by products of mechanical engineering, chemical industry, and mineral products. This creates a high dependence of domestic industry and socio-economic sphere in general on imported products, which is one of the main negative consequences of economic integration. To reduce the risks of economic integration processes, it is necessary to introduce resource- and energy-saving technologies in the industry, which will increase the competitiveness of domestic products. It is important to intensify innovation processes in the national economy, increase exports and support domestic producers

Suggested Citation

  • Larysa Savosh & Liudmyla Pavliuk & Pavlo Kravchuk, 2021. "Economic and mathematical modeling of the dependence of the socio-economic sphere of Ukraine from external-economic factors," E-Forum Working Papers, Economic Forum, vol. 11(4), pages 34-42, November.
  • Handle: RePEc:cuc:eforum:v:11:y:2021:i:4:p:34-42
    DOI: https://doi.org/10.36910/6775-2308-8559-2021-4-5
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