CONTRACTUAL RELATIONS IN COUNTRY’S INTEGRATION STRATEGIES IN GLOBAL VALUES CHAINS

Abstract

The article focuses on the effects of countries integration into global value chains. It was determined that under the conditions of the 21st century, integration and international cooperation became a major development model for many countries of the world, including countries with an emerging market. The generalization of international practice has shown that, within the framework of global production and sales cycles, two countertrends are combined - investment and non-investment (contractual) mechanisms for engagement national economies into global reproduction processes. Against the background of the exacerbation of the international investment risks, contractual forms of international economic cooperation have become widespread. It has been determined that the contractual formats of inclusion in global production and distribution networks manifest themselves as multivariate and are accompanied by ambiguous effects taking into account the long-term development prospects of host countries. The purpose of the article is to reveal the sectoral features of the contractual relations localization in the countries and the identification of their impact on the economic development of host countries. The study analyzed sectoral aspects of the contractual relations development in individual countries and revealed the impact of these formats on such macroeconomic indicators as the number of employed persons, export generation, value added in the country of localization, long-term impact on the industrial potential development, preservation and improving environmental and social practices. On the basis of the above systematization and comparative analysis, the negative effects were highlighted such as implementing countries preservation on low technological level, discriminatory asymmetric conditions for the national business inclusion in global production processes, environmental risks, and the like. It has been substantiated that the multiplication negative effect is intensified in view of not effective state policy according to the criteria of national interests and economic security. A promising direction for further research is the development of regulatory measures aimed at strengthening the positive and reducing the negative effects of international cooperation contractual forms in the framework of global value chains on the host countries.