PROBLEMS OF ENSURING COMPETITIVENESS FOR UKRAINIAN EXPORT ON THE WORLD FERROUS METALS MARKET

Abstract

The author has analyzed theoretical and methodological foundations for international interaction between countries, namely the gravity models of J. Tinbergen and H. Linnemann. The export competitiveness levels are divided into three levels: national, corporate and industrial. The author proposed to add the existing list of competitive export criteria by another - perspective. Since this criterion allows assessing the effectiveness of the national export development model, the availability and the possibility of maximizing the export potential, the effective use of available export potential. The author has analyzed the development trends of the world ferrous metals market. In the framework of the above-mentioned analysis, the current state of domestic metallurgy was analyzed in the conditions of global market penetration and possible strategic prospects were identified. Within the framework of gravity model improvement for ferrous metals market, the author offers to use as an indicator of the economy size - real GDP of partner countries; as the competitiveness factor - the Global Competitiveness Index of the country, and as the logistics costs factor - the average distance between the main ports of the partner countries and the index of economic freedom, which takes into account the volume of tariffs and non-tariffs barriers. Estimated model parameters allow identifying the most promising markets for the export of ferrous metals in order to be competitive in selected countries. Learning the major players experience on the world ferrous metals market allowed concluding that diversification is one of the possible measures to overcome the economic problems of metallurgical enterprises by expanding market maneuver and increasing competitiveness. It will provide more stable results, minimize losses in core business during crises and cyclical recessions. As competitive advantages are shifted to the new products, where the positions of Ukrainian manufacturers are shaky, it is essential to implement innovative development into the production process by adapting the experience and technologies of world leaders.