Complementarity of Trade between Ukraine and the People’s Republic of China as an Indicator of the Effectiveness of Bilateral Cooperation

Abstract

Trade between Ukraine and the People's Republic of China as an Indicator of the Effectiveness of Bilateral CooperationIntroduction. The People's Republic of China is Ukraine's major trade partner in the Asia-Pacific region and its second global trade partner after the Russian Federation. To understand the existing level of bilateral trade and its efficiency and impact on Ukrainian economy, it is necessary to utilize not only quantitative parameters but also analytical indicators of external trade, such as the comparison of trade patterns, in order to determine the level of consistency of trade and the prospects of possible cooperation.Purpose. To analyze the status of contemporary bilateral trade cooperation between Ukraine and China, to measure the consistency of Ukrainian-Chinese trade by using the direct and reversed trade complementarity indexes, and to determine the role and position of China among Ukraine's major trade partners in the Asia-Pacific region.Results. Quantitative analysis of commodities trade was conducted. General trends of trade between Ukraine and the China were outlined. The result of the calculation of direct and reversed trade complementarity indexes were used to provide valuable insight into the possible prospects of bilateral trade, and problems and threats to economic security were uncovered due to the changes in trade patterns of Ukraine by comparing them to the respective parameters of partners in the Asia-Pacific region.Conclusion. The trade between Ukraine and China is growing steadily despite negative trends in the Ukrainian economy. However, the structure and quality of trade are decreasing, and the gap between Ukrainian exports to China and imports from China to Ukraine is constantly growing. It is evident that China is becoming a competitor to Ukraine on the global market and is less interested in Ukrainian exports. Possible actions to prevent and avoid severe competition and improve trade relations were proposed.

Торговельне Співробітництво України З Країнами Північної Африки

“…Теоретичні основи оцінки двостороннього співробітництва між країнами для порівняльного аналізу шляхом подальшого розвитку стратегічних документів та інструментів привернули увагу в роботах та Vlasenko (2019). Однак формулювання та розрахунок підходів до сприяння торгівлі та відповідних економічних пропозицій щодо співпраці між країнами будуть важливими для подальших досліджень.…”

Assessment of the effectiveness of Ukraine's foreign trade policy with the Middle East and Africa countries

“…The theoretical basis of bilateral cooperation assessment between countries for comparative analysis through calculation of Trade Complementarity Index and further development of strategic documents and tools received attention in the papers of Mikic & Gilbert (2007) and Vlasenko (2019). However, the formulation and calculation of trade promotion approaches and related economic proposals for cooperation among countries will be essential for further research.…”

“…A number of limitations on the application of the index should be noted, in particular that it does not take into account the distance between countries, differences in the size of national economies, and the share and quality of high-technology products (Vlasenko, 2019).…”

Quantitative Analysis of Trade Complementarity Between Ukraine and the Eu

“…Ukrainian scientists studied complementarity of trade between Ukraine and the Republic of China as an indicator of the effectiveness of bilateral cooperation (L. Vlasenko [Vlasenko, 2019] The signing of the Association Agreement resulted in a dynamic increase in exports of goods from Ukraine to EU countries, namely: Malta (160.3% growth compared to 2016), Slovenia (156.0%), the United Kingdom (82.0%), Denmark (76.8%), Estonia (70.8%) and other countries.…”