Ukraine and the European Union Industry: Comparative Statistical Analysis of Structural Advantages

• Main Authors: S. О. Ishchuk, L. Yo. Sozanskyy
• Format: Article
• Language: English
• Published: State Statistics Service of Ukraine, the National Academy of Statistics, Accounting and Audit (NASAA), the National Academy for Public Administration (NAPA) under the President of Ukraine 2017-12-01
• Series: Статистика України
• Subjects: industry, output, gross value added, e ff iciency, type o f industrial activity, export, structure.
• Online Access: https://su-journal.com.ua/index.php/journal/article/view/142

The signing of the Association Agreement between Ukraine and the European Union (EU) raised the need to increase the competitiveness of domestic industry producers to the level of the EU member states. The choice of ways to improve the domestic industrial sector should be based on the results of relevant analytical assessments. The purpose of the article is to conduct a comparative statistical analysis of key structural indicators of the industry in Ukraine and EU member states by type of industrial activity. In order to achieve this goal, a methodological approach has been developed that allows for system evaluation of industry pattern and its internal and external efficiency. Using these tools, a comparative analysis of structural advantages of the industry in Ukraine and the EU member states is conducted by share of industry in output, gross value added and exports, and by efficiency measured by share of gross value added in industry output. Similar calculations are made for all types of industrial activities. The results of the analysis show that Ukraine, in spite of heavy industrial potential and significant natural and human resources, in the period of analysis (2012-2015) had only 19th position among the EU member states by industrial output and the 20th position by value added in industry The pattern of the Ukrainian industry is typical for countries with economy based on primary commodities. The key problem faced by the Ukrainian industry is its low efficiency: the 28th position by share of value added in output. The above confirms that the cost structure of industrial products is dominated by material and energy components. This signals the need for further restructuring of the industrial sector in Ukraine. Optimization of the domestic industry structure has to cover all industrial sectors and subsectors. A key optimization criterion has to be the socioeconomic efficiency enhancement, which can be achieved through increasing and restructuring the gross value added, with particular emphasis on the share of gross operating profit, mixed income.