UKRAINE’S INTERNAL MARKET UNDER CONDITIONS OF DISBALANCES BETWEEN PRODUCTION AND CONSUMPTION

Authors

Keywords:

internal market, internal trade, disbalances, sphere of production, sphere of consumption, trap of nonefficient consumption, national reproduction

Abstract

At present, the study of the tendencies in the functioning and the development of the domestic internal market under conditions of a system of current disbalances between the production and the consumption is of high importance. In view of the deepening of those disbalances, the urgent task is the determination of regularities of the development of country’s internal market, which depends on the state and the dynamics of interconnections between the production, exchange, and consumption.
The analysis indicates that, despite the consideration of various aspects of the development of the internal market in the economic literature, the important scientific problem as for the mechanisms of functioning of the current internal market and trade in the system of national reproduction remains unsolved.
Article’s goal is the substantiation of methodological-theoretic principles of the functioning and the development of Ukraine’s internal market under conditions of current disbalances between the production and the consumption.
The authors have used a system approach, structural-institutional analysis, methods of theoretical abstractness, analysis, and synthesis, analysis of statistical data, etc.
It is proposed to consider the mechanism of functioning of the internal market from positions of the interaction (coordination of actions) of all subjects of the market (commodity producers, importers, suppliers, sellers, and consumers) in the context of a making and a realization of the economic decisions by them. The main factors of a change in the model of national reproduction, which is related to the transition to a reproducing process oriented to the development of the sphere of domestic production, are revealed. This allows the authors to substantiate the conclusion that the character of the process of national reproduction is objectively changed under the influence of the mechanism of functioning of the internal market. The regularities of influence of the potential of a self-sufficiency of the internal market on a limitation of negative effects of the disbalances between the production and the consumption in Ukraine are established. Perspectives and directions of a rationalization and an increase in the efficiency of the domestic sphere of personal consumption are shown. The presence of a trap of nonefficient consumption in Ukraine’s economy is substantiated. In this case, the sphere of consumption is separated more and more from the sphere of domestic production. As a result, the internal market cannot execute a stimulating influence on the development of the production. The promising directions of a more active influence of the self-sufficient internal market and internal trade on the development of Ukraine’s production are separated.
The self-sufficient, capacious, and stable internal market ensures objectively the interconnection of the production and the consumption on the basis of the attainment of a dynamical equilibrium of main market parameters. In this case, the self-sufficiency of the internal market becomes a significant precondition of the formation of a new model of national reproduction, whose basis is the efficient process of production and the modern rational sphere of consumption.

 

Keywords:internal market, internal trade, disbalances, sphere of production, sphere of consumption, trap of nonefficient consumption, national reproduction

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Published

21.10.2024

How to Cite

MAZARAKI , A., & LAGUTIN , V. (2024). UKRAINE’S INTERNAL MARKET UNDER CONDITIONS OF DISBALANCES BETWEEN PRODUCTION AND CONSUMPTION. Economy of Ukraine, 59(4(653), 4–18. Retrieved from https://nasu-periodicals.org.ua/index.php/economyukr/article/view/2016-04-1