The study of comparative advantage as a basis of the export potential of Ukrainian economy

Arthur Zubritskiy
Researcher at the Department of Economic and Mathematical Modeling, Analysis and Forecasts, Scientific Research Institute of Financial Law, e-mail:Artur-z@inbox.ru

Cite this article:

Zubritskiy, A. (2015), The study of comparative advantage as a basis of the export potential of Ukrainian economy. Ed.: M. Zveryakov (ed.-in-ch.) and others [Doslidzhennia porivnialnykh perevah yak bazy eksportnoho potentsialu ekonomiky Ukrainy; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin (ISSN 2313–4569), Odessa National Economic University, Odessa, Issue 2, No. 57, pp. 61–70.

Abstract

The article provides an analysis of the evolution of comparative advantages of Ukraine’s exports during 2007-2013 and highlights the group of most competitive commodity items. Decomposition of the comparative advantages by criterion of geographical diversification, using the Herfindahl-Hirschman index, is carried out. It was noted that the comparative advantages in the export sectors with low geographic diversification pose significant risks for the national economy. Commodity positions, competitive advantages of which are formed by intra-industry trade, and therefore are sensitive to the use of discretionary instruments of foreign trade policy of import restriction are revealed.

Keywords

export; export potential; comparative advantage; geographical diversification of exports.

JEL classification: F110, F120

UD classification: 339.564

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