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Authors: Pages: 201-209 Language: English DOI: https://doi.org/10.21272/mmi.2015.2-17
Abstract The aim of the article. The article aims to define the place of import on domestic market and to outline its impact at the development of Ukrainian economy. The results of the analysis. Much attention is paid to the key role of domestic market for the long-term economic and financial stabilization of Ukraine in terms of world economy development as well as evaluation of the scale of import consumption at domestic market of Ukraine. The factors of Ukrainian domestic market growth and the scale of import impact on its development are analyzed. The volume of suspected demand at domestic market is calculated. It is determined that Ukraine remains in the group of countries that have not reached the average competitive ability rate and considerably lags in opposite to the developed countries. It is stated that domestic food industry meets in general the growing demand of population and situation at the market of food products does not provoke special concern. The opposite situation takes place at the market of non-food goods. In this segment of consumer market the tendency of import production increase is observed for the majority of commodity items not only technology intensive but almost for all types of consumer goods production. The ratio of domestic and import goods at domestic market of Ukraine is evaluated and the threats of considerable import consumption scales with low competitive national production are outlined. The dependence of domestic market saturation on the tendencies of foreign trade and on the dynamics of hryvnya exchange rate actualizes the problems of export-import flows state regulation. The structure of commodity supply forming at domestic market of Ukraine in general represents significant disproportions of industrial capacity and domestic market needs as well as considerable pressure of import. Competitive domestic production should become the basis for efficient functioning and development of domestic market in terms of existence of relevant tariff and nontariff barriers for import. The disproportion between national production and import at domestic market is observed. This is due to the activity of following factors: slow change of state regulation policy and its reorientation at stimulation of productive and not intermediary-distributive activity; lack of domestic product range that also lags behind import by quality and price; slow enhancement of customs control and the system of import excess to domestic market that keeps considerable difference between customs value and prime cost of production of wide range of goods nomenclature, primarily of consuming purpose, etc. Conclusions and directions of further researches. The recommendations on import substitution in Ukraine are made. Preventing domestic market of Ukraine from oversaturation by import goods is possible in case of introduction by the state of the range of strategic measures. It allows to enhance the mechanisms of customs control by the correspondence to the real value of declared customs value of goods crossing customs control of Ukraine; introduce scientifically justified mechanisms of tax stimulation of expenses on modernization of production capacity in terms of further increase and realization of goods at domestic markets; introduce of international standards for the quality of consumer products both imported and of domestic production which are sold at domestic markets. New directions of research should be aimed at the identification of external factors in the growth of the domestic market of Ukraine, which directly affect the scale of imports. It will allow to detect threats that is to say external factors, and to take measures to eliminate them. Keywords: domestic market, import, import dependence, import substitution, import regulation JEL Classification: E21, F43. Cite as: Storonyanska I. & Popadynets, N. (2015). The impact of import on the development of Ukrainian domestic market . Marketing and Management of Innovations, 2, 201-209. https://doi.org/10.21272/mmi.2015.2-17
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