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Prospects and Consequences of Approachment of Ukraine with the Customs Union of Belarus, Kazakhstan, and Russia

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  • Panova Iryna O.

    ()
    (V. N. Karazin Kharkiv National University)

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    Abstract

    The goal of the article lies in the study of the modern state and tendencies of development of Ukrainian economy in the Customs Union, identification of possible losses and income from being its member and also justification of necessary measures, realisation of which would ensure immediate growth of its economy. As of now the countries members of the Customs Union have not received significant economic benefit. This is explained by the following factors: small quantity of goods, which the participants can offer each other; low competitiveness; and impact on a number of branch markets. Besides, many critics believe that the possible benefit from the common customs environment is reduced by three factors: high level of corruption; low level of economic freedoms; and low level of democracy. As of today, the issue of Ukrainian choice between the zone of free trade with EU and Customs Union of Belarus, Kazakhstan and Russia is one of the most frequently discussed. In spite of the fact that the volume of trade of Ukraine with the countries of the Customs Union is much higher than with Europe, expediency of joining the former is under question. Ukraine is considered both in the West and in the East as a new market of sales of their products. In general, the issue lies not only in the plane of economy or politics, but mostly in the plane of selection of the development vector. At the same time the issue arises: "Whether Ukrainian goods can withstand such a competition?".

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    Bibliographic Info

    Article provided by RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics in its journal Business Inform.

    Volume (Year): (2014)
    Issue (Month): 2 ()
    Pages: 84_88

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    Handle: RePEc:idp:bizinf:y:2014:i:2:p:84_88

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    Web page: http://www.business-inform.net

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    Keywords: economic integration; Customs Union of Belarus; Kazakhstan and Russia; market of the Free Trade Zone with EU; GDP;

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