Circular economy as a strategic priority of global value chains development

  • Natalia Gakhovich Institute for economics and forecasting NAS of Ukraine
  • Оksana Kushnirenko Institute for economics and forecasting NAS of Ukraine
  • Olga Zarudna Institute for economics and forecasting NAS of Ukraine
Keywords: global value chains, circular value chains, Green Agreement, value added, industrial policy, greening of the economy


Relevance of the research topic. Climate change is one of the key challenges of today, which has evolved into a global undertaking on an unprecedented scale. In order to ensure that industrial growth is not accompanied by a negative impact on the environment, but rather ensures sustainable development, the world community has proposed various ideas and initiatives, such as the adoption of the United Nations Framework Convention on Climate Change (1992), the first  step towards tackling climate change;  Kyoto Protocol (1995), Paris Agreement (2016), European Green Agreement (2019) as a new growth strategy aimed at transforming the EU into more equitable and prosperous societies , with a modern cost-effective and competitive economy based on zero-level decoupling greenhouse gas emissions in 2050. Ukraine is also joining these processes by setting up an interagency group to coordinate the effects of climate change under the European Green Agreement. The primary issue is to substantiate the mechanisms for involving Ukrainian industry in the Green Agreement. Addressing these challenges is the integration of Ukrainian producers into value chains, which determines the relevance of this study. Formulation of the problem. The growing danger of catastrophic global environmental changes and other aspects of irrational policies for the natural resources using threaten the future safe development of society and the ability to meet the needs of consumers. All these challenges require decisive action and adaptation of manufacturers to new operating conditions. Selection of unexplored parts of the general problem. Given the transformation of the model of organization of production, which in the face of increasing international competition is organized within global value chains and strengthening environmental requirements for the integration of producers at different stages of the production process, the problem of substantiating mechanisms for adapting producer’s instruments of state regulation to intensify cooperation of export-oriented industries s producers Ukraine with foreign partners. Setting the task, the purpose of the study. The task of the study is to substantiate the importance of implementing circular principles as a strategic priority for the development of global value chains and substantiate the mechanisms to support Ukrainian producers in the integration into circular (closed) value chains. Method or methodology for conducting research. The work uses general scientific methods: abstract-logical, system; analysis and synthesis, statistical comparisons, grouping, sampling; expert assessments. The field of application of results. The results of this study can be applied in the formation of state policy on the main aspects of export development of industry in the context of integration processes, as well as in the development of industry "greening". Conclusions. Based on the analysis of the development of global value chains, the peculiarities of the formation of circular value chains are revealed and effective tools of industrial policy for intensification of industrial landscaping processes and integration of national production into circular value chains are proposed.


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Author Biographies

Natalia Gakhovich, Institute for economics and forecasting NAS of Ukraine

Candidate of Economic Sciences (Ph.D.), Senior Research Officer of Department of Industrial Policy

Оksana Kushnirenko, Institute for economics and forecasting NAS of Ukraine

Candidate of Economic Sciences (Ph.D.), Associate Professor, Senior Research Officer of Department of Industrial Policy

Olga Zarudna, Institute for economics and forecasting NAS of Ukraine

Junior Research Officer of Department of Industrial Policy

How to Cite
Gakhovich, N., KushnirenkoО., & Zarudna, O. (2020). Circular economy as a strategic priority of global value chains development. University Economic Bulletin, (46), 103-115.
Еconomic Theory