Uman National University | today: 06/19/2025

Production infrastructure: essence and importance in economic development

Author(s) Шпичко Д. О., , ,
Category Economics
year 2025 issue Випуск 106 Частина 2
pages 129-138 index UDK 338.49(477)
DOI 10.32782/2415-8240-2025-106-2-129-138 (Link)
Abstract Sustainable economic development requires many important conditions and factors: sufficient capital, high-performance technologies, protection of private property, a competitive business environment, flexible prices, and a well-developed production infrastructure. The latter element is particularly important because the interaction of the main elements of the market - supply and demand - depends on its effectiveness. Recent historical experience shows that despite significant efforts by the state administration to intensify economic processes, they are doomed to very modest results due to the immaturity of the production infrastructure. The production infrastructure includes a set of industries that serve the main production and ensure its efficient economic activity. These include transport, communications, electricity, financial institutions, specialized business services, etc. Over the period 2001–2023, the output of Ukraine's production infrastructure industries grew at a steady pace. However, their share in the GDP structure decreased. This indicates that the growth rate of production in the infrastructure sector lags behind the growth rate of production in other sectors of the national economy. The reason for this is the resumption of large-scale russian military aggression in early 2022, which caused major damage to the most important component of Ukraine's production infrastructure - transport, warehousing, postal and courier activities. Most of the property has been lost - destroyed or occupied. Given the decisive impact of transport, warehousing, postal and courier activities on production volumes within the production infrastructure and their significant impact on the entire economy, the state should intensify efforts to promote their development. First of all, it is the development of promising Black Sea and Baltic transport corridors, Polish-Ukrainian partnership in the development of transport hubs in Gdansk and Gdynia, etc.
Key words production infrastructure, GDP, value added, CTEA-2010, structure, growth, share, transport, warehousing, war
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