Agrarian Economy 2024 Т. 17 № 2: 133-140
DOMESTIC TRADE OF UKRAINE: CURRENT CONDITIONS AND DEVELOPMENT PROSPECTS
ORCID ID: 0000-0001-6725-1355
Lviv National Environmental University
https://doi.org/10.31734/agrarecon2024.02.133
ANNOTATION
The article discusses the importance of internal trade for ensuring the stability of the economy of Ukraine in the conditions of martial law. The conducted analysis examined the dynamics of the number of business entities engaged in trade for 2012–2022. It was established that in 2022, 661158 business entities were engaged in trade in Ukraine, whilst the number of which decreased by 21.6% during the studied period. A significant reduction in trade enterprises occurred among small businesses, in particular in the group of micro-enterprises, namely, by 35.3 %. These trends are linked to a severe financial crisis in the country, loss of territories and decreased economic activity in affected regions, increased security and logistics costs, dynamic changes in tax legislation, heightened competition from international companies, and population migration.
The author has assessed the structure of retail turnover by the origin of goods and found that domestic goods account for 53.1% of the turnover, indicating that almost half of the goods in retail trade are imported. In wholesale trade, domestic goods make up 43.3% of the turnover. This highlights Ukraine's high dependence on external suppliers, requiring the government to develop and implement measures to support domestic production and economic stability.
The need for innovative practices in domestic trade is emphasized in the study. Digitalization, automation, innovative logistics, environmental practices, e-commerce development, and employee training will crucially contribute to increased trade efficiency and resilience to economic crises. Implementing these measures will attract investments, align with EU standards and regulations, enhance the competitiveness of Ukrainian enterprises, and ensure stable economic growth.
KEYWORDS
domestic trade, wholesale trade, retail trade, turnover; competitiveness of enterprises, innovations
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