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Archive 2002

  • 25.06.2002

    The Future of Ferrous-Metal Industry in Ukraine

    (Code:S10)

    This paper discusses the current situation of Ukraine's ferrous-metal industry and suggests a future strategy for state-support policies.

    Domestic production in recent years has been distorted by e.g. import regulations for inputs or cross subsidization of households and lowperforming industries. On the other hand, the state has supported the industry through granting reduced profit-tax rates. In part as result of such policies, but mainly due to recovery of export markets following the end of financial crises in Asia, the industry has switched from making losses in the late 1990 towards earning large profits (before and after taxes) in subsequent years. However, tax privileges have also given rise to antidumping investigations against Ukrainian firms abroad and thus, are serious threats for future export possibilities.

    Currently, the future design of support policies is on the political agenda. Most Ukrainian policy makers opt for continuation of tax privileges. In contrast, we propose an alternative strategy in which both, distortions as well as privileges, are fully abolished.

    Attached file  (122.6 kb)
    Authors:  Pavel Ferdinand
    Research spheres:  Real sector
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