The use of a comparative advantage coefficient in the research of special aspects of the international economic cooperation between Ukraine аnd Central European сountries: Austria, Switzerland And Germany

Abstract

The article studies the international economic cooperation between Ukraine and several highly developed Central European countries and describes further prospects for the development of their relations. The neighboring highly developed countries such as Austria, Switzerland and Germany have been chosen for this research, as they have already been cooperating efficiently for a while.

Besides general development tendencies of economic relations, the research is based on particular calculations, which include correlation, exports efficiency and comparative advantage coefficients to be more objective in the estimation of the international economic cooperation between Ukraine and the Central European countries. The calculations show a strong correlation dependence between Ukraine`s GDP and the exports to the countries considered in the research. Having analyzed exports efficiency results, the author comes to conclusion that Ukraine has the most inefficient exports among the considered countries. It has the lowest level of income per capita from each exported percent of the GDP in comparison to the average world level, which is taken for 100 percent.  The calculation of comparative advantage coefficients  shows that Ukraine has trade advantages with such commodity groups as fats and oils of animal or vegetable origin; non-precious metals and products of them; vegetable origin products; wood and products of it; ready-to-eat products.