RESTRUCTURING UKRAINE’S ECONOMY THROUGH EU ACQUIS IMPLEMENTATION: A MULTI-DIMENSIONAL COMPETITIVENESS FRAMEWORK

Анотація

This paper examines how Ukraine’s economic restructuring can be guided strategically through the implementation of EU legislation, using a multi-dimensional competitiveness framework. This is because formal legislative alignment with EU legislation has not resulted in full functional convergence with the EU's economic model. The primary purpose of the study is to develop and implement a multi-dimensional competitiveness framework that links the implementation of EU legislation to the restructuring of Ukraine’s economy. This framework is designed to systematically align Ukraine's institutional reforms, structural modernisation and innovation-driven transformation with the demands of the EU Single Market. To this end, the study will construct a five-dimensional competitiveness index to support acquis-driven economic restructuring. The methodology is firmly rooted in the JRC-OECD Handbook on Composite Indicators. The research employs a structured procedure that begins with the compilation of a harmonised dataset from exclusive international sources, including Eurostat, the World Bank and the OECD. A key step in the methodology is normalising all heterogeneous indicators onto a comparable 0–100 scale using a min–max transformation based on normative ranges derived from the EU-27 and Central and Eastern European comparator countries. The empirical results provide a clear, quantifiable assessment. The pilot calculation reveals that Ukraine's composite IGCS score is 40.8 points, compared to 70.9 points for the EU-27. This indicates a significant convergence gap of 42.5%. A detailed dimensional analysis reveals the structure of this gap. Ukraine demonstrates relative strength in macroeconomic resilience and innovation, driven by a specialised IT export sector. However, these strengths are offset by profound weaknesses. The institutional dimension reveals a significant discrepancy between the high level of implementation of formal acquis and the weak enforcement of the rule of law. These findings have substantial practical implications for policymakers in Ukraine and the EU. They highlight the need for institutional reform to shift focus from legislative transposition to enhancing judicial independence and regulatory enforcement, treating this as a critical macro-priority. Innovation policy must also extend beyond the IT sector in order to address systemic underinvestment in R&D. Most importantly, the green transition must form the core of reconstruction strategies to avoid future competitiveness cliffs. The study's originality and value lie in its novel synthesis of a tailored competitiveness index for a post-conflict accession economy, its combination of theoretical convergence concepts with empirical measurement, and its provision of a replicable, evidence-based framework for guiding modernisation and integration policies. This framework fills a critical gap in the existing literature and provides an evidence-based foundation for restructuring Ukraine’s economy in line with EU Single Market requirements.

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