|
| HOME PAGE | |
№ 2023/1
NIKISHYNA Oksana Volodimirіvna1, SHCHERBAK Anatolij Vasyl'ovych2
1Institute of Market and Economic & Ecological Research of the NAS of Ukraine
2Department of General Economic Theory and Economic Policy, Odessa National Economic University
Transition to selective regulation of retail trade in Ukraine on the basis of EU experience
| Economy and forecasting 2023; 1:65-82 | https://doi.org/10.15407/econforecast2023.01.065 |
ABSTRACT ▼
The article analyzes the causes and consequences of the rapid development of retail trade networks. It is shown that this contributed to increased production efficiency, while retail chains gained market power and began to play a key role in the supply chains of many consumer goods. This allows them to redistribute in their favor part of the value added created in other sectors. For this purpose, they use unfair trading practices: unjustified delays in payments for delivered products, imposing services that do not add value to suppliers, transferring commercial risks to them, etc.
The system of regulation of retail trade in European countries has been studied. Differences in the regulation of this sector in 13 countries were analyzed based on the data of the Retail Restrictiveness Indicator. It is shown that the strictest restrictions are enforced in Belarus and in Italy. The regulatory regime in the Baltic states is the most liberal. The authors argue that in the EU countries there is a tendency to move to selective regulation of retail trade, whose object primarily includes "discontinuities" in commodity and financial flows in the systems of vertically adjacent commodity markets. Selective regulation does not limit the operation of market mechanisms, but, on the contrary, promotes their more efficient functioning, eliminating market failures without a significant regulatory burden on business. On the one hand, restrictions on the opening of large-format stores, on trade at reduced prices, etc., are considerably eased. On the other hand, regulation is introduced in certain areas where it was not implemented before. Clarified changes in the regulatory system of retail trade in the EU after adoption of Directive 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.
The authors substantiate the necessity and ways of transition to selective regulation of retail trade in Ukraine. It is shown that the prohibition of unfair trading practices in the food supply chain is much more important in Ukraine than in EU countries. The need to implement the norms of EU Directive 2019/633 into domestic legislation by adopting the Draft Law "On protection against unfair trading practices in relations between business entities in the field of supply of agricultural and food products" has been justified.
Keywords:retail trade, retail trade chains, selective regulation, unfair trading practices
JEL: L51, L81, O52
| Article in English (pp. 65 - 82) | Download | Downloads :17 |
REFERENCES ▼
2. Kavun-Moshkovska, O. (2022). Globalization trends in the development of world retail trade leaders. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia: Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo. – Uzhhorod National University Herald. Series: International economic relations and the world economy, 42, 69-73 [in Ukrainian].
3. Lisitsa, V. (2016). State regulation of activity of retail trade networks in Ukraine in the context of world experience. Problemy i perspektyvy ekonomiky ta upravlinnja – Problems and prospects of economics and management, 3(7), 79-89 [in Ukrainian].
4. Mazaraki, A. (Ed.) (2016). Domestic trade of Ukraine. Kyiv: Kyiv National University of Trade and Economics [in Ukrainian].
5. Pyatnytska, G. (2013). Advantages and disadvantages of the development of large trade networks in the food retail market. Aktualni problemy ekonomiky – Actual problems of the economy, 4, 103-113 [in Ukrainian].
6. Scherer, F., Ross, D. (1997). Industrial Market Structure and Economic Performance. Moscow: Infra-M [in Russian].
7. Grocery market share in Great Britain 2017-2022. Retrieved from www.statista.com/statistics/280208/grocery-market-share-in-the-united-kingdom-uk/
8. Market share of food retail chains in France 2022. Retrieved from www.statista.com/statistics/778198/market-share-supermarkets-hypermarkets-chains-france
9. Gereffi, G. (1994). The Organization of Buyer-Driven Global Commodity Chains: How U.S. Retailers Shape Overseas Production Networks. In: Gereffi, G. & Korzeniewicz, M. (Eds.). Commodity Chains and Global Capitalism (p. 95-122). Praeger, Westport. Retrieved from scholars.duke.edu/display/per2170252
10. Hamilton, G., Senauer, B., Petrovic, M. (2011). The Market Makers: How Retailers are Reshaping the Global Economy. Oxford University Press. doi.org/10.1093/acprof:oso/9780199590179.001.0001
11. Private Label Today. Retrieved from www.plmainternational.com/industry-news/private-label-today
12. European Commission Communication (2014, July 15). Tackling unfair trading practices (UTPs) in the business-to-business food supply chain. COM(2014)472. Strasbourg. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52014DC0472
13. Burkynskyi, B.V. & Nikishina, O.V. (Eds.). (2021). Organizational and economic mechanisms for the formation of effective logistics of commodity markets. Odesa: IMPEER NASU. doi.org/10.31520/978-966-02-9571-1 [in Ukrainian].
14. European Parliament (2016). Motion for a European Parliament resolution on unfair trading practices in the food supply chain. Retrieved from www.europarl.europa.eu/doceo/document/A-8-2016-0173_EN.html
15. Deloitte (2022). Global Powers of Retailing. Retrived from www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.htm
16. Allain, M.-L. and Chambolle, C. (2011). Anti-competitive effects of resale-below-cost laws. International Journal of Industrial Organization, 29(4), 373-385. doi.org/10.1016/j.ijindorg.2010.07.006
17. Bertrand, M., Kramarz, F. (2002). Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry. Quarterly Journal of Economics, 117: 4, 1369-1413. doi.org/10.1162/003355302320935052
18. European Commission (2018, April 19). A European retail sector fit for the 21st century. Communication from the commission to the European Parliament, the Council, the European economic and social committee and the Committee of the regions. COM(2018) 219 final. Brussels. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52018DC021915
19. Civitta (2019). Retail restrictiveness analysis in Eastern Europe. Report. Retrieved from civitta.com/articles/retail-restrictiveness-analysis-in-emerging-europe
20. Burkynskyi, B.V., Nikishyna, O.V., Tarakanov, N.L. & Zerkyna, O.O. (2022). Selective regulation of commodity market systems in conditions of instability. Odesa: DU IREED NANU. doi.org/10.31520/978-966-02-9956-6 [in Ukrainian].
21. European Commission (2022). Food Supply Chain - UTPs - survey results (2nd round). Brussels. Retrieved from datam.jrc.ec.europa.eu/datam/mashup/FOODCHAIN_UTP_2/
22. Leveraging the Unfair Trading Practices Directive to benefit the Garment Sector. Retrieved from news.industriall-europe.eu/documents/upload/2021/9/637684400585561764_210106%20Draft%20Leveraging%20UTP%20transposition_20210927.pdf
23. Chopenko, V. (2015, February 6). Non-negotiable retail. Dzerkalo tyzhnia. Ukraina – Mirror of the week. Ukraine, 4 [in Ukrainian].
24. Antimonopoly Committee of Ukraine. Decision "About the violation of the legislation on the protection of economic competition and the imposition of a fine" No. 182 from April 29, 2015. Retrieved from amcu.gov.ua/npas/vityag-iz-rishennya-182-r-vid-29042015 [in Ukrainian].
25. European Commission (2013). Green Paper. Unfair trading practices in the business-to-business food and non-food supply chain in Europe. Brussels, 31.01.2013. COM(2013)37. Retrived from eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52013DC0037
26. Shcherbak, A.V. (2022). Retail networks in Ukraine: development trends and problems of dominance. Еkonomіka: realіі chasu – Economics: time realities, 4 (62), 52-59. doi.org/10.15276/ETR.04.2022.6 [in Ukrainian].
Events calendar
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 13 | 14 | 15 | 16 | 17 | 18 | 19 |
| 20 | 21 | 22 | 23 | 24 | 25 | 26 |
| 27 | 28 | 29 | 30 | 31 | ||
