DEVELOPMENT OF RELATIONS BETWEEN UKRAINE AND THE EU IN CONDITIONS OF DEEP AND COMPREHENSIVE FREE TRADE AREA
Main Article Content
Abstract
The study substantiates that Ukraine has significant comparative advantages in exports of food, beverages and industrial goods. According to the correlation-regression analysis, it was confirmed that Ukraine's exports have a negative coefficient, ie export indicators decreased in the context of the DCFTA. The results of the comparative analysis (based on the gravitational model of international trade) indicate that the conclusion of the FTA leads to an increase in imports from the EU to Ukraine, but the correlation coefficient is insignificant. The main reasons for this situation are the low complementarity between Ukrainian exports and European imports, reduced competitiveness of Ukrainian goods due to inflation, reduced elasticity of Ukrainian exports to the European market and others. It is established that after the signing of the Agreement on the Deep and Comprehensive Free Trade Area between Ukraine and the EU, the European side receives greater benefits. Taking into account the European experience of successful countries, it is recommended for Ukraine to use comparative advantages in intersectoral trade and to this end to expand the range of export products, apply business climate policy and expand business activity; creating additional opportunities for European investment, etc. Relatively new is the approach of applying the gravity model based on empirical assessment of foreign trade between Ukraine and the EU, which, unlike existing ones, allows to test the mathematical approach to functional relationships between different economic factors under the FTA. Measures have been developed to intensify and increase the competitiveness of Ukrainian exports in the FTA between Ukraine and EU countries, namely: 1) to introduce a European policy on small and medium-sized businesses in order to expand entrepreneurial activity and create additional opportunities for innovation and investment; 2) consider the possibility of Ukraine joining the Single European Payments Area in order to overcome currency volatility;3) reduce income tax to 10% for all taxpayers; 4) harmonize VAT with the EU and consider ways to deepen integration and speed up compliance with the conditions for EU membership.
Article Details
The authors published in this journal agree with following conditions:
1. The authors reserve to themselves the right to the authorship of their works and transfer the right of their first publication to the journal on the terms of Creatіve Common Attrіbutіon Lіcense which allows to freely extend to other persons the published work with an obligatory reference to the authors of the original work and its first publication in this journal.
2. The authors have the right to complete independent additional agreements concerning the not exclusive distribution of their work in the form in which it was published in this journal (for example, to place the work in the electronic storehouse of an establishment or to publish as a monograph component), under the condition of the preservation of the reference to the first publication of the work in this journal.
3. The journal’s policy allows and encourage the authors to place their manuscripts into the Internet (for example, in depositories of establishments or on personal web-sites) either before submitting of the manuscript for publication or during its editorial processing as it assists the occurrence of a productive scientific discussion and positively affects the efficiency and dynamics of citing of the published work.
AGREEMENT
ABOUT TRANSMISSION OF COPYRIGHT
I, the author of the article / We, the authors of the manuscript _______________________________________________________________________
in case of its acceptance for publication, we transfer the following rights to the founders and editorial boards of the scientific publication "BULLETIN OF THE CHERKASY BOHDAN KHMELNYTSKY NATIONAL UNIVERSITY. ECONOMIC SCIENCES. SERIES "ECONOMIC SCIENCES":
1. Publication of this article in Ukrainian (English, Russian, Polish) and distribution of its printed version.
2. Dissemination of the electronic version of the article through any electronic means (placing on the official journal web site, in electronic databases, repositories, etc.).
At the same time we reserve the right without consent of the editorial board and the founders:
1. Use the materials of the article in whole or in part for educational purposes.
2. To use the materials of the article in whole or in part for writing your own theses.
3. Use article materials to prepare abstracts, conference reports, and oral presentations.
4. Post electronic copies of the article (including the final electronic version downloaded from the journal's official website) to:
a. personal web-pecypcax of all authors (web sites, web pages, blogs, etc.);
b. web-pecypcax of the institutions where the authors work (including electronic institutional repositories);
with. non-profit, open-source web-pecypcax (such as arXiv.org).
With this agreement, we also certify that the submitted manuscript meets the following criteria:
1. Does not contain calls for violence, incitement of racial or ethnic enmity, which are disturbing, threatening, shameful, libelous, cruel, indecent, vulgar, etc.
2. Does not infringe the copyrights and intellectual property rights of others or organizations; contains all the references to the cited authors and / or publications envisaged by applicable copyright law, as well as the results and facts used in the article by other authors or organizations.
3. It has not been previously published in other publishers and has not been published in other publications.
4. Does not include materials that are not subject to publication in the open press, in accordance with applicable law.
____________________ ___________________
First name, Last name, signature of the author
"___" __________ 20__
References
Melсhіor, A. (2018). Free Trade Agreements and Globalization: In the Shadow of Brexit and Trump.
Corbin, L. and M. Perry (2019). Free Trade Agreements: Hegemony or Harmony, New York, NY: Springer.
Tinbergen, K. (1954). International economic integration: a monograph. Amsterdam.
Mandell, R. (1961). A Theory of Optimum Currency Areas. The American Economic Review, 51, 4, 657–665.
De Grauwe, Р. (2020). Economics of monetary union. Oxford University Press.
Consolidated version of the Treaty on European Union (2012). Official Journal of the European Union. Retrieved from https://eur-lex.europa.eu/resource.html?uri=cellar:2bf140bf-a3f8-4ab2-b506-fd71826e6da6.0023.02/DOC _1&format=PDF (Accessed: 14.12.2021)
Association Agreement (2021). Government portal of the executive power of Ukraine. Retrieved from https://www.kmu.gov.ua/diyalnist/yevropejska-integraciya/ugoda-pro-asociacyu (Accessed: 10.01.2022).
Rehlament (YeS) № 374/2014 Yevropeiskoho Parlamentu ta Rady vid 16 kvitnia 2014 roku pro znyzhennia abo skasuvannia mytnykh zboriv na tovary pokhodzhenniam z Ukrainy. (Regulation (EU) No 374/2014 of the European Parliament and of the Council of 16 April 2014 on the reduction or elimination of customs duties on goods originating in Ukraine). Retrieved from https://eur-lex.europa.eu/eli/reg/2014/374/oj (Accessed: 18.12.2021)
Yatsenko, M., Karaseva, A. (2017). Yevro-pidpryiemnytstvo: perspektyvy ta zahrozy realizatsii potentsialu zony vilnoi torhivli Ukrainy z YeS v ahrarnomu sektori (Euro-entrepreneurship: prospects and threats to the realization of the potential of Ukraine's free trade area with the EU in the agricultural sector). Global and national economic problems. № 15. Retrieved from http://global-national.in.ua/issue-15-2017/23-vipusk-15-lyutij-2017-r/2728-yatsenko-o-m-karasova-n-a-evro-pidpriemnitstvo-perspektivi-ta-zagrozi-realizatsiji-potentsialu-zoni-vilnoji-torgivli-ukrajini-z-es-v-agrarnomu-sektori (Accessed: 18.12.2021).
Law of Ukraine: On the Customs Tariff of Ukraine (2014). № 584-VII. Verkhovna Rada of Ukraine.
Law of Ukraine: On the Customs Tariff of Ukraine (2014). Information of the Verkhovna Rada of Ukraine 20-21: 740
Storozhchuk, V. (2016). Realizatsiia taryfnoho rehuliuvannia v mezhakh Uhody pro asotsiatsiiu mizh Ukrainoiu ta YeS (Implementation of tariff regulation within the Association Agreement between Ukraine and the EU). Publishing and Printing Center of Ternopil National University of Economics "Economic Thought", 1, 88–97.
On Ratification of the Protocol on Ukraine's Accession to the World Trade Organization: Law of Ukraine. (2008). Information of the Verkhovna Rada of Ukraine, 23, 213.
The World Bank (2021). Inflation, consumer prices. Retrieved from https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG (Accessed: 21.02.2022).
Dinda, S. (2019). Regional Orientation Index: Opportunities for Trade. UN Comtrade database, Climate Friendly Goods and Technologies in Asia, 53-58.
Revealed Comparative Advantage. United Nations Conference on Trade and Development. Retrieved from https://unctadstat.unctad.org/en/RcaRadar.html (Accessed: 05.02.2022)
The World Bank (2021). Trade indicators. Retrieved from https://wits.worldbank.org/wits/wits/witshelp/Content/Utilities/e1.trade_indicators.htm (Accessed: 09.02.2022)
Wall, D. (1968). Import intensity, imports and economic growth. Collection of scientific works "Economica", 35, 157–168.
Polishchuk V. (2021). Estimated data for the model. Retrieved from https://www.researchgate.net/profile/Vitalii-Polishchuk-2/publication/358736133_gravity_model_data/data/6212389208bee946f3918d28/gravity-model-data.xlsx (Accessed: 09.02.2022).