THE ROLE OF THE DEFENSE-INDUSTRIAL COMPLEX IN THE ECONOMIC DEVELOPMENT OF UKRAINE

Keywords: defense-industrial complex, post-war economy, aggregate employment, aggregate demand, defense technologies, defense.

Abstract

The article analyzes the role of the defense-industrial complex in the economic development of Ukraine. The history of the formation and development of the military-industrial complex and its place in the economy, problematic issues of progress, economic potential and achievements are examined. Special attention is paid to the state of the defense-industrial complex of our country in the conditions of Russia's war against Ukraine. In the context of the recovery of the country's economy in the post-war period, one should focus on the role of the defense-industrial complex in the Keynesian model of stimulating aggregate demand in order to overcome crisis phenomena.

In Ukraine, as a result of the large-scale invasion of Russia and the bombing of infrastructure facilities, there was a need for their military protection. In the future, the requirements for the construction of infrastructure and energy facilities will include the presence of passive protection against missile attacks, which will increase the cost and at the same time ensure the loading of additional capacities and enterprises.

It has been proven: the defense industry is one of the largest employers of Ukraine, as it is able, with state support, to ensure a solvent aggregate demand and a large number of jobs, positively affecting the state of employment of the population, and will become the driving force behind the recovery of the post-war economy from the crisis, which will strengthen not only the economic potential of the country, and the state's position on the world market. The formation and development of a powerful defense-industrial complex will allow the authorities to provide guarantees of national security and defense, which will become a factor of sustainable economic development.

The article defines the ways of development of the defense-industrial complex of Ukraine in view of the development of science-intensive technologies that can be applied in civilian industries and with the involvement of private capital. This should provide a multiplier effect on the increase in the volume of the gross domestic product due to the increase in wages and the amount of taxes that will be paid by defense enterprises.

Author Biographies

S. CHIMYSHENKO, Kyiv Institute of Business and Technology

PhD (Econ.), Associate Professor

Y. BOLOTINA, Kyiv Institute of Business and Technology

PhD (Philos.), Associate Professor

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Published
2023-10-04
How to Cite
CHIMYSHENKOS., & BOLOTINAY. (2023). THE ROLE OF THE DEFENSE-INDUSTRIAL COMPLEX IN THE ECONOMIC DEVELOPMENT OF UKRAINE. Herald of Kyiv Institute of Business and Technology, 49(1-2), 87-97. https://doi.org/10.37203/kibit.2023.49.08