2025 8

Structural and Sectoral Disproportions in Ukraine’s Industrial Development: Manifestations and Consequences

Chorna O. A.,
Phd in Economics,
ORCID https://orcid.org/0000-0001-7262-1138
e-mail: chernaya.alex@gmail.com;
Korytko T. Yu.,
Phd in Economics, Associate Professor,
ORCID https://orcid.org/0000-0002-4251-1971
e-mail: taniakorytko@gmail.com
Institute of Industrial Economics of the National Academy of Sciences of Ukraine, Kyiv

Citation Format
Chorna O. A., Korytko T. Yu. Structural and Sectoral Disproportions in Ukraine’s Industrial Development: Manifestations and Consequences. Management of Economy: Theory and Practice. Chumachenko’s Annals: collection of scientific papers / Institute of Industrial Economics of the NAS of Ukraine. Kyiv, 2025. P. 115-140. https://doi.org/10.37405/2221-1187.2025.115-140 

Language
 Ukrainian

Resume
The article is devoted to identifying the key features of Ukraine’s industrial development and assessing the sectoral disproportions in the industrial sector caused by structural constraints. For Ukraine, overcoming structural and sectoral problems is a critical precondition for industrial modernization and for ensuring its development in line with the principles of Industry 4.0 and 5.0.
Sectoral disproportions in Ukraine are manifested in deindustrialization, the primitive nature of the economic production structure, uneven development of low- and high-technology industries, low productivity, the loss of complex production and technological competences, and, consequently, the weak competitiveness of Ukrainian manufacturers in global markets.
Based on the conducted assessment, the article identifies the major problems of the industrial sector that determine Ukraine’s weak position as a producer of finished goods on the world market. These include: deepening raw-material dependence and the declining share of high-technology industries; disruption of logistics and production chains, particularly in metallurgy, machine building and chemicals; high energy vulnerability; the downturn of the manufacturing sector due to infrastructure destruction, labour shortages, and reduced industrial cooperation; a shift in exports towards less complex and less capital-intensive products, which reinforces structural distortions; and the dependence of many industries on external markets and capital-intensive imported equipment, making them highly vulnerable during wartime.

Keywords
industry, structural constraints, sectoral disproportions, deindustrialization, industrial policy.

Referensces

  1. Breque, M., De Nul, L. & Petridis A. (2021). Industry 5.0 Towards a sustainable, human centric and resilient European industry. European Union. https://op.europa.eu/en/publication-detail/-/publication/468a892a-5097-11eb-b59f-01aa75ed71a1/
  2. Rowthorn, R. & Ramaswamy, R. (1997). Deindustrialization – Its Causes and Implications. Economic Issues, 10. https://www.imf.org/EXTERNAL/PUBS/FT/ISSUES10/issue10.pdf
  3. Rodrik, D. (2016). Premature deindustrialization. Journal of Economic Growth, 21(1), 1-33. https://doi.org/10.1007/s10887-015-9122-3
  4. Chornіi, R. S., Wenger, V. V., Kushnirenko, O. M. & Chorna, N. P. (2025). Innovative and industrial development of regions of Ukraine: prospects and limitations. Economy of Ukraine, 2, 3-27. https://doi.org/10.15407/economyukr.2025.02.003 [in Ukrainian].
  5. Kindzerskі, Yu. (2023). Industrial policy for economic development: to the problem of its justification from the standpoint of world experience and in the context of the need for use in the war period and during post-war reconstruction in Ukraine. Economic analysis, 33(3), 110-129. https://doi.org/10.35774/econa2023.03.110 [in Ukrai-nian].
  6. Kindzerski, Yu., Pidorycheva, I. & Litkovych, Yu. (2023). The transformation of industrial policy in the world and its lessons in the context of war and prospects for post-war recovery in Ukraine. In Management of socio-economic transformations of business processes: current realities, global challenges, forecast scenarios and development prospects [Scientific monograph] (pp. 153-166). Sofia: Professor Marin Drinov Publishing House of Bulgarian Academy of Sciences.
  7. Khaustova, V. E. (2025). Transformation of the Economic Model of Ukraine in the Post-War Period [Monograph]. Kharkiv: Liburkina L. M. https://doi.org/10.32983/978-617-7801-52-7 [in Ukrainian].
  8. Ishchuk, S. O. & Sozansky, L. Yo. (2024). Optimization of the structure of the manufacturing industry of Ukraine according to the criteria of increasing the technological level of production operations and reducing their import dependence. Economy of Industry, 1(105), 16-38. http://doi.org/10.15407/econindustry2024.01.016 [in Ukrainian].
  9. Sobkevych, O. V., Rusan, V. M., Zhurakovska, L. A., Oliynyk, D. I., & Vlasyuk, O. S. (2025). Realization of the potential of industry and the agricultural sector of the economy in the conditions of war and post-war recovery [analytical supplement]. In Ya. A. Zhalilo (Ed.). Kyiv: NISD.https://doi.org/10.53679/NISS-analytrep.2025.09 [in Ukrainian].
  10. Aksyonova, I. (2024). Statistical analysis of trends in industrial interregional disparities. Economy and Society, 62. https://doi.org/10.32782/2524-0072/2024-62-122 [in Ukrainian].
  11. Nosyrev, O. O. (2020). Leveling Disproportions in Economic and Industrial Development of Regions of Ukraine. Scientific Bulletin of Uzhgorod State University. Series “International Economic Relations and the World Economy”, 33(1), 124-129. https://doi.org/10.32782/2413-9971/2020-33-22 [in Ukrainian].
  12. Zaloznova, Yu. (2018). Industry of Ukraine: modern challenges and problems of development. Economy of Ukraine, 61(3), 49-68. https://doi.org/10.15407/econo2018.03.049 [in Ukrainian].
  13. Zaloznova, Yu. S. & Chekina, V. D. (2025). Stimulating the development of smart industry in the spatial aspect: experience for Ukraine. Economy of Industry, 1(109), 3-19. http://doi.org/10.15407/econindustry.2025.01.003 [in Ukrainian].
  14. Antonyuk, V. P. & Lyashenko, V. I. (2025). Industrial development of the Dnieper regions during the war and the need for its innovative modernization. Economy of Industry, 2(110), 21-40. http://doi.org/10.15407/econindustry.2025.02.021 [in Ukrainian].
  15. Vyshnevsky, O. & Bozhyk, M. (2025). Smart manufacturing as a strategic determinant of Ukraine’s industrial policy amid global structural transformations. Journal of European Economy, 24(3), 308-333. http://doi.org/35774/jee2025.03.308
  16. Pidoricheva, I. Yu. (2023). Assessment of sectoral disparities related to the needs of innovative transformation of the business sector of Ukraine. Economy of Industry, 3(103), 64-91. https://doi.org/10.15407/econindustry2023.03.064 [in Ukrainian].
  17. Pidoricheva, I. & Bash, A. (2025). Restoration of Special Economic Zones in Ukraine: Focus on Reindustrialization and Structural Transformation of the Economy in Wartime and the Postwar Period. Economy of Industry, 1(109), 20–37. https://doi.org/10.15407/econindustry2025.01.020 [in Ukrainian].
  18. Amosha O.I., Zaloznova Yu.S., Novikova O.F., Azmuk N.A., Bryukhovetska N.Yu., Buleev I.P., Lyashenko V.I., Osadcha N.V., Pidoricheva I.Yu., Rogoza M.E., Khandiy O.O., Pankova O.V. Petrova I.P. Lyakh O.V., Novak I.M., Nikiforova V.A., Bogutska O.A., Trushkina N.V., Chorna O.A., Serdyuk O.S., Kasperovych O.Yu., Kolesnikova G.V., Radchenko, K.V., Lishchuk, O.V., Lukyanov A.I., & Utkin, V.P. (2023). Some conceptual proposals of the Institute of Industrial Economics of the NAS of Ukraine on the support and development of domestic industry during martial law and post-war neo-industrial modernization. Bulletin of Economic Science of Ukraine, 1(44), 161-183. https://doi.org/10.37405/1729-7206.2023.1(44).161-183 [in Ukrainian].
  19. Chorna, O. (2025). Foreign trade of Ukraine as an indicator of structural constraints and sectoral imbalances in industry. Blog of the Institute of Industrial Economics of the National Academy of Sciences of Ukraine. https://blog.iie.org.ua/zovnishnia-torhivlia-ukrainy-iak-indykator-strukturnykh-obmezhen-ta-haluzevykh-dysproportsij-promyslovosti [in Ukrainian].
  20. State Statistics Service of Ukraine. (n.d.). https://www.ukrstat.gov.ua/
  21. Eurostat. (n.d.). https://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an_3.pdf
  22. Growth Lab. (n.d.). Atlas of Economic Complexity. https://atlas.hks.harvard.edu/countries/840
  23. Ministry of Finance. (n.d.). https://index.minfin.com.ua/ua/economy/gdp/eximp/

Full Text .pdf

The article was prepared within the framework of the implementation of the “Comprehensive scientific research on the actualization of Ukraine’s industrial policy on the principles of Industries 4.0 and 5.0” of the Institute of Industrial Economics of the NAS of Ukraine at the expense of budget funds aimed at ensuring the conduct of scientific research and scientific and technical (experimental) developments by state scientific institutions based on the results of state certification.

Received: 15.10.2025
Accepted: 19.11.2025
Published: 29.12.2025