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Структурні Виклики В Системі Виробництва Та Зовнішньої Торгівлі Для України: Європейська Інтеграція Чи Її Імітація
[Structural Challenges in the System of Production and Foreign Trade for Ukraine: European Integration or Its Imitation]


  • Konchyn, Vadym


The article is devoted to the content of the principle of comparative advantage in the country's production system and foreign trade and its key role in the early stages of implementation of the Agreement on Deep and Comprehensive Free Trade Area between Ukraine and the European Union. The assessment methodology of commodity and sectoral revealed comparative advantage of the country's foreign trade in relationship with factors of natural comparative advantage in production is presented. The structural analysis of Ukraine’s foreign trade with the world and extra with the EU-28 is conducted, including estimation of trade openness degree of commodity production sectors, FDI and also Ukraine’s commodity and sectoral revealed comparative advantages /their absence. The main indicators of Ukrainian commodity production by sector (economic activity) are calculated. The data set of parameters and characteristics of commodity production by sectors and the results of foreign trade are constructed. The statistic relationships between Ukraine’s commodity production indicators and foreign trade results for world and extra for the EU-28 are found. The degree of optimum for trade model between Ukraine and the EU at the start of implementation of the Agreement on free trade area is estimated. Proposals to strengthen the commodity production and trade relations optimality for Ukraine with EU are given.

Suggested Citation

  • Konchyn, Vadym, 2016. "Структурні Виклики В Системі Виробництва Та Зовнішньої Торгівлі Для України: Європейська Інтеграція Чи Її Імітація
    [Structural Challenges in the System of Production and Foreign Trade for Ukraine:
    ," MPRA Paper 73798, University Library of Munich, Germany, revised 15 Aug 2016.
  • Handle: RePEc:pra:mprapa:73798

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    References listed on IDEAS

    1. Vinhas de Souza, Lúcio & Schweickert, Rainer & Movchan, Veronika & Bilan, Olena & Burakovsky, Igor, 2005. "Now so near, and yet still so far: economic relations between Ukraine and the European Union," Kiel Discussion Papers 419, Kiel Institute for the World Economy (IfW).
    2. Konchyn, Vadym, 2004. "Komparative Wettbewerbsposition der Ukraine in den Produktions- und Handelsbeziehungen im Weltwirtschaftssystem und mit dem sich erweiternden Europa," Kiel Working Papers 1219, Kiel Institute for the World Economy (IfW).
    3. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Findlay, Ronald, 1974. "Relative Prices, Growth and Trade in a Simple Ricardian System," Economica, London School of Economics and Political Science, vol. 41(161), pages 1-13, February.
    6. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    7. Luigi L. Pasinetti, 1960. "A Mathematical Formulation of the Ricardian System," Review of Economic Studies, Oxford University Press, vol. 27(2), pages 78-98.
    8. Paul Krugman & Anthony J. Venables, 1995. "The Seamless World: A Spatial Model of International Specialization," NBER Working Papers 5220, National Bureau of Economic Research, Inc.
    9. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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    More about this item


    deep and comprehensive free trade area between Ukraine and the EU; the principle of comparative advantage; revealed comparative advantage; the natural comparative advantage; RCA-index; international specialization; sectors of commodity production; productivity; labor unit costs; capital intensity; the optimal model of foreign trade;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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