CORRECTION OF INSTITUTIONAL DISPROPORTIONS – THE KEY TO CHANGE THE ROLE OF UKRAINE IN THE REDISTRIBUTION OF THE WORLD ECONOMIC FORCES

Abstract

The article deals with the structure of the domestic economy, the dynamics of the structure of exports and imports to determine the role of Ukraine and the prospects for its change in the process of redistribution of world economic forces. The resource component with a low level of product processing continues to dominate Ukraine's export potential. Two thirds of the country's exports are vegetable products, mineral products and precious metals. Conducted analysis determined the international specialization of Ukraine's economy as agriculturally orientated. The share of export articles which are the products with a low degree of processing is still significant, which prevents the creation of high added value within the economy of Ukraine. The country needs not only technological changes, introduction of production with high added value, but also fundamental changes in economic policy, which would take into account the improvement of the structural, institutional and financial component and ensured implementation of an innovative model of the country's development, increase of the competitiveness of Ukraine's economy in the world market. There are undeniable advantages such as a well-developed system of education, a significant scientific basis, and they are in general represent much more significant innovation potential than that of other countries with similar GDP. Therefore, in order to increase the competitiveness of the Ukrainian economy in the world market, Ukraine needs not only cardinal technological changes, but also the improvement of economic policy in order to preserve and develop the main achievement of the country - human capital. The aim of the study is to develop and improve the taxation system as an integral part of the institutional structure of the country, for the preservation and development of the human capital of the country as a driving force to change Ukraine's place in the redistribution of world economic forces. Increasing the innovative human capital and the effectiveness of its usage within the domestic economy will lead to the growth of intellectual and innovative potential of Ukraine. The practical significance of the results of the study is the possibility of their use during the formation of an appropriate legislative and regulatory basis.