THE IMPACT OF MACROECONOMIC FACTORS ON THE COMPETITIVENESS OF UKRAINE’S INTERNATIONAL SERVICES MARKET

Abstract

The purpose of the article is to analyze the impact of macroeconomic factors on the competitiveness management of Ukraine's international services market and to identify promising directions for its development. Methodology of research. The study combines comparative analysis, structural analysis, graphical methods, and correlation analysis to evaluate the relationship between macroeconomic indicators and the dynamics of services exports. Findings. The analysis of statistical data reveals a declining share of services in Ukraine's international trade, volatile export and import dynamics caused by the COVID-19 pandemic and the full-scale war, and a substantial structural shift in service exports toward knowledge-intensive activities. In particular, telecommunications, computer and information services, as well as other business services, have significantly increased their contribution to total service exports. To assess the influence of macroeconomic factors, a correlation analysis was conducted using service exports as an empirical proxy for the competitiveness of Ukraine's international services market. The findings indicate a strong positive relationship between services exports and GDP growth, as well as the level of digitalization. At the same time, inflation and national currency depreciation demonstrate a moderate negative relationship with export performance. The relationships between services exports, labour market conditions, and government effectiveness are statistically weak but remain important in shaping the long-term institutional environment for international trade in services. The study concludes that military risks, macroeconomic instability, and institutional constraints remain the main threats to the competitiveness of Ukraine’s international services market, whereas the country's major competitive advantages lie in its highly skilled human capital and the strong performance of the ICT services sector. The study further suggests that the future development of the international services market will largely depend on the country's ability to maintain macroeconomic stability, sustain economic growth, and foster the expansion of knowledge-intensive industries. In this context, the ICT sector remains a key driver of international competitiveness. Accordingly, strengthening the export of digital services and supporting the development of software engineering, artificial intelligence, cloud computing, cybersecurity, big data analytics, and other high-tech services should become strategic priorities. Maintaining macroeconomic stability is equally essential, as it enhances the confidence of foreign partners and creates favorable conditions for long-term international service contracts. Practical value. The practical significance lies in the possibility of applying its findings by government authorities in the development of state policies aimed at strengthening macroeconomic stability, supporting exports of high value-added services, improving the institutional environment, and promoting the sustainable development and international competitiveness of Ukraine’s services sector.