STRATEGIC GUIDELINES FOR IMPORT SUBSTITUTION POLICY IN UKRAINE: REGIONAL PECULIARITIES AND ASPECTS OF ECONOMIC SECURITY

Abstract

The content-typological characteristics of import substitution are considered, in particular, taking into account the regional specificity and focus on the economic security of the state. Protective and liberal views on import substitution policies are highlighted. It is concluded that the regional policy of import substitution is a separate integral direction of the state policy, which is implemented with the purpose of overcoming systemic risks and threats of import dependence of the interregional and local markets, and is implemented using a set of mechanisms, tools and measures available, most acceptable and effective at the regional level. A significant role is assigned to the generalization of the world experience of the state regulation of import substitution; this is especially important in the context of the formation and implementation of state policy in Ukraine in this area.
The results of the analysis confirm the high level of import dependence of Ukraine’s domestic market and pronounced trends towards increasing dependence and growing threats to the economic security of the state. Assessments are made and features of import dependence by regions are identified; this shows excessive territorial-spatial differentiation and high criticality of the scale and trends of intra-regional consumption of imported goods in Ukraine. A high level of import dependence is inherent in all regions of the state, since the share of imports in domestic consumption has exceeded the critical value in 13 regions and the average share over the country – in six regions. The share of imports in domestic consumption was within the optimal value in three regions only.
The systemic nature of the problem of import substitution involves the need to strategize the state policy in this area, in particular, taking into account regional peculiarities. Based on the preliminary grouping of the regions of Ukraine by the characteristics of import dependence and potential for counteraction, the authors propose strategic decisions on the state regulation of counteraction to import dependence, development of the domestic market, and strengthening of economic security of the regions as a prerequisite for ensuring the country’s economic security.