COMPETITIVENESS OF UKRAINIAN AGRICULTURAL EXPORTS AND ENVIRONMENTAL EXTERNALITIES

Agricultural exports plays a pivotal role in shaping Ukraine’s foreign trade specialization; however, the predominance of primary commodities intensifies challenges related to long-term competitiveness and environmental sustainability in conditions of European integration. The strengthening of environmental requirements within the EU Common Agricultural Policy necessitates a reassessment of the structural characteristics of Ukraine’s agricultural exports with explicit consideration of environmental externalities. The purpose of this study is to evaluate the competitive position of Ukraine’s agricultural sector using the revealed comparative advantage (RCA) index and the product complexity index (PCI), interpreting the results through the lens of economic externality theory. The object of the research is the structure of Ukraine’s agricultural exports, while the subject is the relationship between comparative advantages, product complexity, and environmental external effects. The methodological framework integrates international trade analysis tools with concepts from institutional and environmental economics. The empirical basis of the study is formed by international trade statistics for 2023. The research employs index analysis, comparative statistical methods, and theoretical interpretation of the obtained results. The findings indicate that Ukraine’s highest revealed comparative advantage (RCA) values are concentrated in product groups with low product complexity index (PCI) scores, reflecting the predominance of a resource-oriented model of export competitiveness. Although this model supports short-term export performance, it is associated with the accumulation of negative environmental externalities that remain largely non-internalized within the existing institutional framework. The scientific novelty of the study lies in the integrated application of RCA and PCI indicators in conjunction with externality theory to assess the sustainability of agricultural competitiveness in the context of Ukraine’s European integration. The practical significance of the results consists in substantiating policy recommendations aimed at developing financial and economic support mechanisms to stimulate higher value-added agricultural production and to mitigate the adverse effects of intensive natural resource use.