REGULATORY STATE MECHANISM FOR THE DEVELOPMENT OF PROCESSING INDUSTRY IN UKRAINE

Topicality. Ukraine is experiencing a simplification of its industrial structure and a decline in technological sophistication, along with increasing depreciation of fixed assets and declining investment. The country faces deterioration in production, transportation, and energy infrastructure, regression in innovation, and a worsening export commodity structure. These challenges necessitate the modernization of industrial policy and the development of an effective state regulatory mechanism to support the growth of Ukraine’s processing industry. Aim and tasks. To develop a conceptual framework for a state regulatory mechanism governing the development of the processing industry, focusing on its specialized functions. Materials and Methods. The study employs general scientific and specialized research methods, including comparison, generalization, synthesis, system analysis, and logical-dialectical analysis. The research is based on monographs, specialized literature, analytical materials, domestic and international academic journals, and data from the State Statistics Service of Ukraine. Research results. The article examines the concepts of “management” and “regulation” and their interrelation. The structure of the state regulatory mechanism for the development of the processing industry is defined as comprising 6 components: target, subject, functional, instrumental, regulatory and resource. Based on an analysis of domestic and international practices, the study identifies key specialized functions of this mechanism: protectionism; investment attraction; support for domestic manufacturers; development of high- and medium-tech industries; import substitution and production localization, and expansion of non-resource exports. Additionally, the research examines the current state of Ukraine’s processing industry in the context of the implementation of these special functions. The Plan for the Development of the Processing Industry of Ukraine for the period 2023-2032 is considered. Conclusion. Based on the analysis of domestic and international experience, the study proposes a conceptual model for the state regulatory mechanism of Ukraine’s processing industry, identifying its special functions, and analysing negative trends within the sector. Implementation of the Development and Transformation Plan for the Processing Industry of Ukraine for the period 2023-2032 is expected to increase the industry’s share of GDP from 9.5 % in 2022 to 21.8 % in 2032.