Minimizing risks of integrating Ukrainian industry into global value chains

  • Оksana Kushnirenko Institute for economics and forecasting NAS of Ukraine
  • Olga Zarudna Institute for economics and forecasting NAS of Ukraine
Keywords: global value chains, post-pandemic constraints, risks, exogenous and endogenous barriers, diversification, integration, digitalization, industry, value added


Relevance of the research topic Global value chains (GVC) are the dominant element of world trade, which incorporated various stages of processing into global supply chains of different development levels countries. The potential to include of Ukrainian producers into the GVC is very high, but not fully exploited now. Only innovative, technologically equipped, certified companies with a reliable business reputation have a chance to enter GVC. Formulation of the problem. The challenges of the coronavirus pandemic increase the importance of justifying new approaches to opportunities for Ukrainian industry, in particular, for successful integration into the GVC. Selection of unexplored parts of the general problem. Changes in the organization of world trade have occurred in the context of the coronary. This is due to disruption of intermediate processing supply chains, shifting to shorter chains and control increasing over the quality and safety of products in compliance with sanitary standards. This opens up new opportunities for Ukrainian producers, while the problem of reducing risks and removing obstacles remains insufficiently studied. Setting the task, the purpose of the study. The study aims to highlight key risks and development of a set of measures to minimize them while integrating Ukrainian industry in GVC. Method or methodology for conducting research. The work used general scientific methods: system analysis, abstract logical, expert assessments, as well as special research methods: statistical comparisons, groupings, sampling (to risk identification in the GVC integration process). Conclusions. Analysis of the development of GVC in the context of post-pandemic constraints made it possible to identify key risks and obstacles for Ukrainian producers, included among them are a high level of vulnerability was established from tightening control conditions and strict restrictions on supplies; The digital and technological gap in accordance with world standards; excessive concentration of the import component in selected product categories, causes dependence on foreign suppliers; a huge shortage of capital; decrease in profitability; deterioration of financial stability and solvency.


Download data is not yet available.


1. Rodrik, D. (2018). New Technologies, Global Value Chains and the Developing Economies. Background Paper 1. September 2018. Prosperity Commission Background Paper Series, No. 1. Oxford. United Kingdom. URL :

2. Brennan, L., Ferdows, K., Godsell, J., Golini, R., Keegan, R., Kinkel, S., Srai, J.S. and Taylor, M. (2015). Manufacturing in the World: Where Next? International Journal of Operations and Production Management, 35, 9. 1253-1274. URL :

3. Cattaneo, O., Gereffi, G., Miroudot, S. and Taglioni, D. (2013). Joining, upgrading and being competitive in global value chains: a strategic framework, Policy Research working paper, The World Bank. No. WPS 6406.

4. Reshaping Global Value: Technology, Climate, Trade – Global Value Chains under Pressure. URL:

5. Ukrayins'ki zapchastyny korystuyut'sya popytom v Nimechchyni [Ukrainian spare parts are in demand in Germany]. URL:

6. Risk, resilience, and rebalancing in global value chains: report. McKinsey Global Institute, 2020. URL:

7. Database OECD.Stat. Trade in Value Added (TiVA). URL:

8. Kushnirenko, О., Zarudna, O. (2018). Mozhlyvosti intehratsiyi ukrayins'koyi promyslovosti do hlobal'nykh lantsyuhiv dodanoyi vartosti [Opportunities for the integration of the Ukrainian industry into global value chains]. Ekonomichnyy visnyk universytetu, 39. 65-74. URL:

9. Deineko, L. V. et al. (2018). Rozvytok promyslovosti dlia zabezpechennia zrostannia ta onovlennia ukrayinskoyi ekonomiky: naukovo analitychna dopovid. [Development of industry to ensure the growth and renewal of the Ukrainian economy: scientific and analytical report]. Ed. by L. Deineko. Kyiv, NAS Ukraine, SI «Institute for Economics and Forecasting of NAS of Ukraine». URL:

10. World Integrated Trade Solution. URL:

11. Deineko, L. V. (Ed.) (2019) Promyslova polityka yak klyuchovyy instrument stratehiyi rozvytku : naukovo analitychna dopovid' [Industrial policy as a key tool of development strategy: scientific and analytical report]. za red. d-ra ekon. nauk Deineko L.V. ; NAN Ukrayiny, DU «In-t ekon. ta prohnozuv. NAN Ukrayiny». Kyiv. URL:

12. Derzhavna sluzhba statystyky Ukrayiny [State Statistics Service of Ukraine]. URL:

13. OECD (2021). Global value chains: Efficiency and risks in the context of COVID-19. URL:

14. Pohlyad kerivnykiv biznesu v Ukrayini 2020. Spetsvypusk: COVID-19. KPMG v Ukrayini 2020 [The view of business leaders in Ukraine 2020. Special issue: COVID-19. KPMG in Ukraine. 2020]. URL:

15. Five ways that ESG creates value. McKinsey Quarterly. November 14, 2019.

16. Skorotyty ESG ne mozhna finansuvaty – chy vy znayete de postavyty komu? [You can't fund an ESG - do you know where to put it?] CFA Society Ukraine 2021. URL:

Author Biographies

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
KushnirenkoО., & Zarudna, O. (2021). Minimizing risks of integrating Ukrainian industry into global value chains. University Economic Bulletin, (50), 64-75.
Economy and Management