IMPROVEMENT OF REGULATORY AND LEGAL INSTRUMENTS FOR STIMULATING THE DEVELOPMENT OF UKRAINIAN MECHANICAL ENGINEERING

Section "Economics": Economic and Legal Problems of Sustainable Development

Abstract

Mechanical engineering in combination with the IT-sphere is the sector of the economy with the highest potential for the creation and implementation of product, technical and technological innovations, as well as a key centre of intersectoral relations. The importance of mechanical engineering for industry and the economy in general is confirmed by its high and growing share in the gross added value of the processing industry of the vast majority of developed industrial EU countries: 48,4 % in Germany, 25,5 % in Poland, while in Ukraine it is only 17 %. Domestic engineering is characterized by generally negative development trends, which have intensified as a result of the military aggression of the russian. Accordingly, the purpose of the article is to substantiate the approaches to the improvement of regulatory and legal instruments for stimulating the development of mechanical engineering in Ukraine. The author substantiates the effectiveness of the use of protectionist policy tools in relation to the domestic automobile industry during 1995-2008, which resulted in the increase in the production and export of automobiles. Ukrainian legislation in the field of stimulating the development of the production of machine-building products for the agro-industrial complex is analyzed in detail, and its key shortcomings are identified, in particular in terms of calculating the degree of localization and determining the share of imports in public procurement. It was emphasized that the production of domestic machine-building products for the agro-industrial complex depends significantly on the import of the most important components (engines, gearboxes), a significant part of which came from the russian federation and Belarus. In order to overcome such import dependence (especially after the introduction of a full trade embargo with russia), the author's proposals were submitted, in particular, to the Law of Ukraine “On Stimulating the Development of Domestic Mechanical Engineering for the Agro-Industrial Complex”, the Law of Ukraine “On Public Procurement” and the Government's Program to Reduce Prices agricultural machinery and equipment of domestic production. Taking into account these proposals will contribute to the implementation of the plan for the post-war recovery of the economy of Ukraine, which was announced by the team of the President's Office and representatives of the government.

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