INTEGRATION OF THE DOMESTIC SUGAR MARKET INTO GLOBAL VALUE ADDED CHAINS


Keywords: transformation, commodity market chain, link, sugar market, distribution and logistics center, terminal.

Abstract

Topicality. An important condition for the development of the sugar market, as one of the strategic markets of Ukraine, is integration into international economic structures. One of the ways to solve the problems of integration is to ensure the export of sugar by creating distribution and logistics centers.
Aim and tasks. The aim of the article is to develop proposals on possible ways to promote the integration of the Ukrainian sugar market into global value added chains, which will transform the existing chain and improve the relationship between different actors and change the inefficient direction of material and financial flows.
Research results. The article contains the results of the research devoted to the substantiation of economic interests of the subjects of LCSM and the peculiarities of their interaction. In the work on the example of the Ukrainian sugar market the peculiarities of the formation of structures of logistics chains, their general and different characteristics, inefficient links in the market chain have been identified. The existing structural construction of LCSM has been considered and diagnostics of efficiency of its functioning has been carried out. In the context of the integration of LCSM of Ukraine into the global sugar market, the expediency of its transformation by including a new link in the form of a distribution and logistics center (sugar terminal) has been substantiated.
Conclusion. The transformed LCSM provides an opportunity to improve the relationship between the subjects of different links and change the inefficient direction of material and financial flows for a gradual transition to the movement of material flow through the distribution and logistics center. In the course of the research the organizational mechanism of LCSM integration has been offered taking into account the interests of internal and external chains of the global market.

Author Biographies

B.V. BURKYNSKYI

Academician of the National Academy of Sciences of Ukraine, Dr. Econ. Sciences, Professor
Director
Institute of Market Problems and Economic&Ecological Research of the National Academy of Sciences of
Ukraine,
Frantsuzkyi boulevard, 29, Odesa, Ukraine, 65044

P.O. ANTONYUK

PhD in Economics
Senior Scientific Researcher, Department of market mechanisms and structures
Institute of market problems and economic&ecological research of the National Academy of Sciences of
Ukraine,
Frantsuzskiy boulevard, 29, Odesa, Ukraine, 65044

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Published
2021-03-20
How to Cite
BURKYNSKYI, B., & ANTONYUK, P. (2021). INTEGRATION OF THE DOMESTIC SUGAR MARKET INTO GLOBAL VALUE ADDED CHAINS. Economic Innovations, 23(1(78), 7-21. https://doi.org/https://doi.org/10.31520/ei.2021.23.1(78).7-21