THE IT SECTOR OF UKRAINE: INSTITUTIONAL AND ECONOMIC ANALYSIS

Information technologies are one of the key drivers of socio-economic development and digital transformation, playing an essential role in enhancing the competitiveness of national economies. Ukraine, due to its high level of technological expertise and integration into global digital service markets, is a significant player in the international IT sector. In the context of macroeconomic instability and threats associated with war, there is an increasing need for a comprehensive analysis of the institutional factors influencing the development of the industry. The purpose of this article is to conduct an institutional and economic analysis of the functioning of Ukraine's IT industry using the Institutional Analysis and Development (IAD) framework, which enables the assessment of interaction mechanisms between government bodies, businesses, investors, educational institutions, and professional communities. The study identifies the key exogenous variables shaping the market environment, including legal regulation, financial support instruments, the level of digital infrastructure, international integration, and human capital potential. Particular attention is paid to the analysis of the interconnections between the key stakeholders in Ukraine's IT sector. The structure of regulatory, financial, educational, and social ties between public institutions, private businesses, investors, educational institutions, and professional communities is detailed. It is established that the effectiveness of these interactions is a critical factor for the sustainable development of the IT sector. The authors have adapted the IAD framework to the specifics of Ukraine’s IT industry, providing a systematic assessment of how institutional changes affect the competitiveness of the sector. The practical significance of the results lies in the development of recommendations aimed at improving the regulatory environment, stimulating investment, modernizing educational programs, expanding public-private partnerships, and strengthening international cooperation. The proposed development strategies will contribute to increasing the innovation potential and global integration of Ukraine's IT industry in the context of digital transformation and global economic challenges.