Market development of the economy of the eu and Ukraine: asymmetry and ways of overcoming it

Abstract

The goal of this article is to develop practical, scientific and methodological recommendations to improve the market development of Ukraine and reduce the divergence of its economy in relation to the EU economy. Research methodology includes: system-structural and comparative studies (to understand the logic of the functioning of modern market institutions in Ukraine and Europe); monographic analysis (in the study of approaches to improve the market development of the Ukrainian economy); statistical and economic analysis (when carrying out a rating assessment in relation to economic freedoms and competitiveness of the Ukrainian economy). Scientific novelty: it was revealed that the state of market development of the Ukrainian economy is significantly lower not only in comparison with the EU countries, many CIS countries, but also lags behind the overwhelming major- ity of countries in the world. The reason for this is the low efficiency of the ju- dicial and law enforcement system; weakness and archaism of state regulation of the business environment; monopolization and oligarchization of the economy, non-transparent approaches to the privatization of assets in Ukraine; “Black” and “gray” land market; violation of customs procedures and registrations, which sig- nificantly saturate the markets of Ukraine with counterfeit and smuggled goods. In contrast, EU countries are pursuing policies that promote asset and property rights protection, stimulate job creation and economic growth by creating a busi- ness-friendly climate, as well as focusing on innovation and related infrastructure aid funds. Conclusions: a proactive state policy is needed in the formation of ef- fective regulatory institutions in Ukraine, in anti-corruption and economic reforms, in reducing the level of monopolization and oligarchization of markets; also priva- tization stimulating investment and innovation; transition from extensive to in- tensive management methods; embedding of domestic products into external value chains; increasing investment in domestic infrastructure; priority in the develop- ment of small and medium-sized businesses; systemic focus on increasing the productivity of the economy; the emergence of new businesses in a low-carbon and environmentally friendly economy. Key words: economies of the EU and Ukraine, market development, European economic integration, world economy.