Verstyak O. Trade and economic convergence of Ukraine and EC

It is dedicated to the investigation of the convergence trade and economic factors of Ukraine and EC for the various indices of the social-economic development. It is observed the theoretic base of integration processes, the conditions of EC economic convergence deepening. It is carried out the experience analysis of the free trade zone forming in other countries. The economic factors of the Ukraine eurointegration are isolated, such as: linearization of the Ukraine trade regulation; decrease of tariff and non-tariff limitation on export to EC of Ukraine goods-metallurgical, textile and sewing output; getting an opportunity of the domestic commodity producer protection at anti-dumping special investigations; prevention of Ukraine trade economic isolation from Central and West Europe countries and also from East Europe and Baltic countries by the way of the free trade zone forming; the working out of effective system of domestic commodity producer protection from careless import. The following aims of the process of Ukraine euro-integration and distinguished by the author: internal policy consolidation; regional leadership instrument using of "East partnership", including supply of the theme platform work in the limits of EC new initiative; improving mechanism of the providing of state power bodies in eurointegration sphere. The author determined the internal economic steps which Ukraine can realize in the eurointegration process; strategy realization of the development which can provide annual speeding rate of Ukraine gross domestic product on the level, which is not lower than 6-7% (in 1,5-2 times higher than in EC countries); vital overcoming (on this basis) disparity of domestic product per head between the Ukraine and EC member-countries; mastering the innovative model of structural reorganization and the realization of which may provide the essential decrease of Ukraine economy competitive; Ukraine strengthening of middle class-the base of political stability and society democratization; the essential limitation of threatening differentiation of population income and poverty overcoming. In the dissertation investigation the problem of inequality at the development level of EC member-countries and Ukraine is observed. Its speed is valued on the basis of the foreign experience of the convergence econometric modeling. Besides, it is given the classification of convergence mechanisms, the analysis of which allows to determine the measures of economic policy which facilitate the reduction of inter-regional inequality; technologic progress stimulation; measures concerning the structural reorganization of the country economy to the side of more developed types of economic activity, the development of international co-operation and so on. The system of economic growth models is analyzed and forecast (on practical level) the convergence is theoretically grounded on the basis of Solow model and thus methods of empiric control of convergence concept are determined. The empiric analysis of convergence processes between Ukraine and EC member-countries showed that the most spreading method of convergence presence in the rate of economic development is the reduction of the inequality of the GDP level per head among thвe countries groups. The econometric analysis of some countries or regions, where it was estimated the dependence of accumulated for some period of time the increase of real GDP from the initial level of GDP per head is used by author for the -convergence conception control. Besides, the control of convergence conception was done on the basis of analysis of time lines of income indices and the investigation of its dynamic characteristics. The economic-mathematic analysis of the Ukraine economy external sector was carried out, as the effective functioning of the external economic activity depends on a large amount of factors which are hardly estimated by the expert methods. That's why at studying the functional dependencies in Ukraine international activity a large significance has the device of economic-mathematic modeling, which gives an opportunity to determine the quantitative valuation of the pointed our factors. It was carried out the complex investigation of the various factors influence on the exchange rate level of the Ukraine export of goods and service to the greatest partners and EC country-members and also import of energy and non-energy goods and services from the mentioned above countries.