Public procurement of light industry products under martial law conditions
The article is devoted to the importance of stimulating domestic demand by the state and substituting the import component in public procurement, which will contribute to economic self-sufficiency, sustainability, extension of internal chains of added value, and the creation of new jobs. It is noted that the products of light industry are used in all spheres of life of the population and the national economy. Authors underline that the activity of light industry has a significant multiplicative effect on the development of related industries and spheres, which is important for defense capability and the reconstruction of production and infrastructure facilities. The subject of the study is the implementation of the policy of ensuring the priority of support for Ukrainian producers and stimulation by state bodies of demand for domestic goods in conditions of martial law, improvement of the procurement planning system. Authors try to substantiate stimulating measures for the growth of state procurement of light industry products by providing advantages to domestic producers. Changes in state procurement of light industry products under martial law were studied and assessed. The article uses a number of methods: analysis and synthesis – to determine priorities in state procurement of light industry products, deduction and induction – to establish cause-and-effect relationships and organize objective knowledge about relevant economic processes and phenomena in order to ensure the stability of the national economy under war conditions. Comparative and tabular methods were also used, which made it possible to outline the main results of the research, to summarize and systematize the materials. Multiplicative effects were calculated on the basis of the table “input-output at basic prices”. State purchases of light industry products through the Prozorro system were analyzed. A number of problems were identified that prevent domestic enterprises from participating and winning in public procurement. Directions and measures for stimulating the involvement of domestic enterprises to participate in public procurement and import substitution in Ukraine, improving the procurement process are proposed.
Benchmarking Public Procurement. (2016). International Bank for Reconstruction and Development, The World Bank. URL: https://thedocs.worldbank.org/en/doc/154641523554023955-0050022018/original/BPP16ReportFinal.pdf
Uyarra, E., Zabala-Iturriagagoitia, J.M., Flanagan, K., Magro, E. (2020). Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation. Research Policy, 49 (1), 103844.
Jiménez, A., Hanoteau, J., Barkemeyer, R. (2022). E-procurement and firm corruption to secure public contracts: The moderating role of governance institutions and supranational support. Journal of Business Research, 149, 640-650.
Polonsky, M.J., Wijayasundara, M., Noel, W., Vocino, A. (2022). Identifying the drivers and barriers of the public sector procurement of products with recycled material or recovered content: A systematic review and research propositions. Journal of Cleaner Production, 358, 131780.
Chaikovska, V.V. (2021). Regarding the need to take into account international obligations when introducing localization requirements in public procurement. In S.V. Kivalov (Ed.), Science and public life of Ukraine in the era of global challenges for humanity in the digital era (on the occasion of the 30th anniversary of the declaration of independence of Ukraine and the 25th anniversary of the adoption of the Constitution of Ukraine): in 2 volumes: materials of the International science and practice conf. (Odesa, May 21, 2021), 2 (pp. 609-612). Odesa: Helvetyka [in Ukrainian]
Zveryakov, M. (2024). Formation of a model of economic development model in new historical realities. Ekon. Ukr. – Economy of Ukraine, 65, 8 (729), 3-19 [in Ukrainian]
Chepeliev, M. (2012). Estimation of multiplier effects for Ukrainian industries: a retrospective analysis based on the “input-output” tables. Economist, 11, 74-76 [in Ukrainian]
Buleev, I.P., Bryukhovetska, N.Yu., Chorna, O.A. (2021). Modernization of industry through import substitution and localization of production in mechanical engineering. Economic Herald of Donbass, 1 (63), 37-51 [in Ukrainian]
Sudarkina, S. (2021). Localization of industrial production as a factor of industry revival of Ukraine. Bulletin of the National Technical University “Kharkiv Polytechnic Institute” (Economic Sciences), 1, 13-17 [in Ukrainian]