Open Economy or Protectionism: Ukraine’s Dilemma
Since 1991, Ukraine has had several economic crises (1991-1999, 2009, ongoing since 2014) and a period of economic boom from 2000 to 2008. The current crisis has external (the unfavorable situation in the world commodities markets) and internal (the military conflict with neighboring Russia) dim...
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| Format: | Article |
| Language: | English |
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University of Montenegro - Faculty of Economics Podgorica
2018-08-01
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| Series: | Montenegrin Journal of Economics |
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| Online Access: | http://repec.mnje.com/mje/2018/v14-n03/mje_2018_v14-n03-a18.pdf |
| Summary: | Since 1991, Ukraine has had several economic crises (1991-1999,
2009, ongoing since 2014) and a period of economic boom from
2000 to 2008. The current crisis has external (the unfavorable
situation in the world commodities markets) and internal (the
military conflict with neighboring Russia) dimensions. The
destruction of economic infrastructure and the unpreparedness of
Ukrainian producers to compete globally explain its depth and
complexity. Radical and non-orthodox measures may be needed to
help Ukraine to return to economic growth. This article discusses
pros and cons of an asymmetrical solution that involves a
combination of protectionism and an outward-oriented strategy
during the recovery period. It is argued that it may be more efficient
than the country’s reliance on foreign loans and aid. The analysis of
regional-level data for 2013-2016 lends some support to this
argument. |
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| ISSN: | 1800-5845 1800-6698 |