The analysis of export trade between Ukraine and Visegrad Countries

Abstract

The dynamic development of foreign trade is important for the stable economic position. It can be considered as a confi rmation of the actual efficiency of the national economy and its ability to be competitive in the global economics. In this paper, we analyze main tendencies of export trade of Ukraine with Visegrad countries and examine whether there is a relationship between the level of GDP and the volume of export activities between these countries. It should be noted that various agreements were concluded between Ukraine and each country of the V4 group regarding economic and trade relations. The main aim of this paper is to evaluate development of export of goods between Ukraine and Visegrad countries between years 2002-2013. The data of State Statistics Service of Ukraine, Eurostat and United Nations Conference on Trade and Development (UNCTAD) were used. The development of export from Ukraine to V4 countries is investigated using the software GRETL and log-log linear model. It is discovered that Ukraine’s export operations are impacted by export to other trade partners and GDP per capita of the country. The strongest positive link to Ukraine export from V4 group is represented by Poland. It is identified that, when the GDP per capita of the concerned country goes up, the export to that country declines. It is also revealed that there is a substantial difference with respect to export of agricultural commodities from Ukraine to the above-mentioned countries. To a significant extent, Ukraine’s export is oriented towards plant products. Ukraine should elaborate a well-defined trade strategy and extend its current export activities with V4 countries. It should be more deeply integrated into the EU’s market for using more efficiently possibilities, which exist in the frame of the signed Ukraine-European Union Association Agreement.