Ukraine’s future competitiveness: Directions for structural shifts in foreign trade and investment

In this study we identify sectors where Ukraine is likely to develop or maintain strong comparative advantages during the post-war reconstruction based on “Build back better” principle. These sectors will be able to attract investment, expand exports and become integrated in global production networks. Given Ukraine's status as an EU candidate, these processes are viewed within the larger framework of the EU accession process and related regulatory changes. We identify six industries where a combination of industrial policy, a foreign direct investment (FDI) attraction strategy and institutional and education reforms should allow to maximise the post-war recovery potential. We complete the study with recommendations for Ukrainian and EU policy makers about policy changes to support trade and FDI growth in these sectors.