Problems and prospects of government regulation of foreign economic activity

Abstract

The problems of Ukraine's foreign economic activity – the raw-material orientation of exports, significant dependence on the import of technological products and energy resources, and logistical problems burdened by active hostilities – highlight the urgency of state regulation and the effectiveness of economic policy in the sphere of international economic relations. In this context, the specifics of state regulation of Ukraine's foreign economic activity under the conditions of wartime challenges and European integration are analyzed. The regulatory and legal framework of state regulation in this sphere is considered, taking into account the role of the main actors. Special attention is paid to the analysis of the international experience regarding the system of state regulation of foreign economic activity in Germany, Japan, Poland, and the Czech Republic. In order to identify the main problems, an analysis of the current state of Ukraine's foreign trade was conducted; the structural features of exports and imports, the problems of the raw-material orientation of goods, the shortcomings of the logistical infrastructure, and the insufficient level of production of high value-added goods were substantiated. Certain positive changes in state policy in the sphere of foreign economic activity have been identified, in particular, the processes of European integration, customs digitalization, partial liberalization of currency regulation, and the partial restoration of logistical capabilities. It is emphasized that the current system of regulating foreign economic activity is still insufficiently effective and does not fully meet modern challenges. The main problems that most significantly affect the functioning of foreign economic activity in Ukraine are substantiated: the structural raw-material dependence of exports and the weak effectiveness of the logistical and institutional support for foreign economic activity. Ways to improve the effectiveness of state regulation of foreign economic activity are proposed through the development of deep resource processing, the transition from raw-material exports to the supply of high value-added goods, the development of domestic bioenergy, the expansion of public-private partnership programs to attract foreign capital, and the modernization of logistical infrastructure.