Kotelevets Dmytro, PhD (Economics), Doctoral Student (Economics), IHE «Academician Yuriy  Bugay International  Scientific  and  Technical University», Kyiv, Ukraine

ORCID ID: 0000-0001-9274-8240
e-mail: d.kotelevets21@gmail.com

Main Barriers to the Development of the Digital Economy in Ukraine

Abstract. Introduction. The formation and development of the digital economy is one of the most important issues on the agenda at the national level in a number of countries around the world. Information and communication technologies, penetrating into various spheres of business entities, are actively transforming the national economy, bringing its functioning to a qualitatively new level. Modern technologies contribute to increasing the competitiveness of enterprises due to the introduction of innovations, speeding up the processes of service provision, increasing the level of convenience for consumers and improving communication channels with them.

Purpose. The purpose of the article is to specify and analyze the main barriers to the development of the digital economy in Ukraine.

Results. During the last five years, the processes of digitalization of the economy have been rapidly intensified. The challenges caused by the COVID-19 pandemic have proven that digitalization is an objective necessity capable of leveling the negative effects of the pandemic on business activities. Information and communication technologies have provided business with real opportunities to function in conditions of strict restrictions and forced social distancing. Along with this, the urgent need for the development of digital infrastructure became obvious. Ukrainian enterprises were able to adapt quite successfully to cooperation in new conditions by organizing remote work of staff, increasing presence on the Internet (official websites, social networks, various marketplaces, etc.), expanding the scale of online sales, and by improving communication with consumers (feedback systems, communication in messengers, etc.). This was mainly provided by the capabilities of digital technologies and elements of the digital infrastructure. A full-scale Russian offensive at the end of February 2022 had a detrimental effect on the development of the digital economy in Ukraine. The destruction and damage of enterprises, infrastructure, and the relocation of the population to safer territories negatively affected the dynamics of the basic technical, economic, personnel, and innovation-technological parameters of the development of the digital economy.

Conclusions. In the short- and medium-term perspective, the negative effects of the war and its consequences will affect Ukraine’s position in international rankings for digitalization of the economy and various spheres of society. The war in Ukraine slowed down the positive dynamics of the parameters of the development of the digital economy, however, obtaining the status of a candidate for EU membership opens up new opportunities in the deployment of digitization processes based on European standards and norms.

Keywords: digital economy; digitalization; digital infrastructure; information and communication technologies; e-commerce; digital divide.

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