FOREIGN TRADE IN THE STRUCTURE OF STATE REVENUES

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FOREIGN TRADE IN THE STRUCTURE OF STATE REVENUES

Journal Title: Зовнішня торгівля: економіка, фінанси, право - Year 2017, Vol 2, Issue 91

Abstract

Background. In an open economy, incomes largely depend on the influence of foreign trade activity.The production of final goods and services considering export and import transactions may differ significantly from final domestic expenditures due to change in trading conditions. Due to the large volume of foreign trade turnover the deterioration of trade conditions reduces the purchasing power of export incomes of business entities, leads to the forced restrictions on imports and to the decline in real final expenditure and investment. The analysis of recent research and publications. The problems of the assessment of the foreign trade relations impact on the national economy incomes were studied by famous foreign scientists. Ukrainian scientists, comparing the price dynamics of exports and imports, notice the reduction of the economy income from the foreign trade transactions and the enhancement of risks of reduction of the imbalance of the balance of payments (BOP) of Ukraine, which arises as a result of the deterioration of trade conditions. However, the main product groups that significantly affect given ratio remained unclear. Theaim of the study is a quantitative assessment of the impact of changes of trade conditions on the economy income and the state of Ukraine balance of payments from foreign trade operations, as well as the development of proposals to eliminate negative consequences which arise as a result of price disproportions. Materials and methods. Methods of statistical analysis on the basis of data published by the State Statistics Service of Ukraine were used. The results of the research. The conditions of trade as one of the main factors that caused the change of income from foreign trade of Ukraine were studied. The volumes of economy losses from the price factor for 2008–2015 years were established. Conclusions regarding the provision of structural changes concerning the accelerated development of high-tech and knowledge-based sectors of the domestic economy are analogized. Conclusion. Quantitative assessment of the impact of changes of «trade conditions»indicates chronic deficits of Ukraine trade imbalance, which are the result of the increase of instability of raw commodity markets, the relative drop in the value of raw materials trade, deterioration of «trade conditions»and the increase of the scale of the non-equivalence of the exchange. The adverse consequences of Ukraine’s participation in the global division of labour and international exchange, which was manifested in the relative decline of commodity prices, in the deterioration of «trade conditions», can be traced with some deviations over the past ten years. The growth of the trading loss caused the imbalance of domestic demand with its resource provision, contributed to the growth of imports of goods. To avoid serious problems in the sphere of foreign trade transactions which bring risks and threats to the economic security of the country is possible only through modernization of production and change in the structure of exports and imports.

Authors and Affiliations

Kapitalina HUROVА, Andriy NEPRAN

Keywords

trade conditions export import trade income balance of foreign trade balance of payments.

EP ID EP235209
DOI -
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