Evolution of Ukrainian Economy: New Trade Theory Evidence

Vadym Konchyn

The Icfai Journal of Applied Economics, 2008, vol. VII, issue 2, pages 80-110

Abstract: This paper examines the progress of Ukraine on its way to market reforms and European Economic Integration. Proceeding from the experience of Central and Eastern European Countries (CEEC), the processes of Ukraine's economic liberalization and approximation of its level of economic development to that of the (European Union) EU-members should stipulate for transition of the national economy onto the dimension which explains the industrial and trade relations through the prism of the New Trade Theory postulates coupled with Traditional Trade Theory principles. The paper reveals that multidimensional and systemic principles of the New Trade Theory can be revealed in course of deepening the globalization and integration processes in the modern world economy. The study concludes that Ukraine, as a country in transition, should commit itself to the formation of the model of economic development based on the New Trade Theory postulates. This model will better exert itself if Ukraine intensifies its integration processes within the European Economic Area.

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