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Viktoriia OPALKO


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

Author Biography

Viktoriia OPALKO, Bohdan Khmelnytsky National University of Cherkasy

PhD (Economics), Associate Professor


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