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Ukrainian international trade: How far from the potential?

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  • Maryanchyk Ivan

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    Abstract

    This paper applies the gravity theory to model Ukrainian trade patterns. I estimate two specifications — Global and Ukrainian. The former is used to forecast the optimal trade volumes and compare with the actual. The latter helps analyzing factors affecting Ukrainian trade. Ukraine explored its trade potential with the EU. On the other hand, having the low potential in 1995, the country achieved even better results in this direction in 2002. Trade with CIS deteriorated despite vast possibilities predicted by the model. Another unexplored opportunity is large economies of G7, Asia, and Americas. Ukraine could benefit liberalizing trade relations with Russia (to gain in trade and reach the potential) and with EU (to safeguard achieved results). Accession to the WTO might help in exploring the potential with G7 and other big economies.

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    Bibliographic Info

    Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 05-14e.

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    Date of creation: 18 Oct 2005
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    Handle: RePEc:eer:wpalle:05-14e

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    Postal: EERC Research Network, Russia and CIS, 1, Mazepy Str., suite 202, Kyiv, 01010 Ukraine
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    Related research

    Keywords: Ukraine; international trade; gravity.;

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