Spatial Differentiation of Commodity Trade Between Ukraine and the Eu

Abstract

At the current stage of the socio-economic development of Ukraine in the conditions of Russian aggression, the topical issue is the expansion of foreign economic relations with EU member countries. The purpose of the study is a spatial analysis of the features of regional differentiation of Ukraine’s commodity trade with the countries of the European Union in the context of expanding trade and economic relations after signing the Agreement on a free trade zone with the EU and granting Ukraine the status of a candidate for EU membership. Such research methods as structural and spatial analysis, statistical and correlation analysis, and typological analysis were used. The dynamics of commodity trade between Ukraine and the EU in 2001–2021 are analyzed and the main trends in interstate trade in goods were identified. It has been revealed that the general trend of bilateral trade relations with the countries of the European Union in the 21st century is generally similar to the trend of the turnover of foreign commodity trade between Ukraine and all countries of the world. It has been established that the spatial differentiation of Ukraine’s commodity trade with the EU clearly shows great variability and asymmetry of export and import indicators. The dependence between the level of economic development of Ukraine’s regions and the commodity trade volume with EU countries is traced. A characteristic feature is the spatial heterogeneity of the distribution of commodity trade in Ukraine’s regions according to the predominant directions of foreign commodity trade relations. The western regions of Ukraine have the highest level of connectivity of commodity trade with the countries of the European Union, which is explained by better transport accessibility to EU markets and the development of cross-border cooperation. According to the main directions of trade flows and on the basis of a comparison of the connectivity and balance coefficients of commodity trade with EU countries, six types of Ukraine’s regions are identified. The novelty of the research is the identification of the features of regional differentiation and significant asymmetry in the commodity trade of Ukraine’s regions with the countries of the European Union based on the criterion of connectivity and symmetry of trade flows using spatial analysis.