International integration processes influence on welfare of country
Abstract
The primary objective of the research is to investigate the influence of international integration processes on national welfare. Peculiarities of trade and economic liberalization of trade through mechanism of regional trade agreements (RTA) forming have been scrutinized. Integration, which develops due to RTAs, is the most important mechanism of the international cooperation in the field of economic policy. This integration is a coordination and protection mechanism, which functions in a broad spectrum of policies. An exceptional role of RTAs in reaching country economic security has been estimated. RTAs being a result of a compromise reached by protectionism and anti-protectionism forces have been grounded. Using tools of the multiple regression model, the influence of integration processes, in which Ukraine and China participate, on national economic growth rates and on GDP per capita (as major parameters reflecting national welfare level) was simulated. This allowed detecting of the positive direct dependence between the trade liberalization and economic growth rates, as well as the inverse dependence between the trade liberalization and GDP per capita, for both countries. Based on these regression models, economic growth rates and GDP per capita were predicted for next years; according to this prediction, graduate increasing of national welfare shall occur in Ukraine and China.
Keyword : integration, regional trade agreements, regionalization, trade liberalization, welfare, economic growth, multiple regression model
How to Cite
Bazaluk, O., Yatsenko, O., Reznikova, N., Bibla, I., Karasova, N., & Nitsenko, V. (2022). International integration processes influence on welfare of country. Journal of Business Economics and Management, 23(2), 382–398. https://doi.org/10.3846/jbem.2022.16228
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Bhagwati, J., & Panagariya, A. (1996). The theory of preferential trade agreements: Historical evolution and current trends. American Economic Review, 86(2), 82–87.
Bhala, R. (2008). International trade law: Interdisciplinary theory and practice (3rd ed.). LexisNexis.
Bilal, S. (1998). Why regionalism may increase the demand for trade protection. Journal of Economic Integration, 13(1), 30–61. https://doi.org/10.11130/jei.1998.13.1.30
Bilan, Yu. V., Yatsenko, O. М., & Nitsenko, V. S. (2019). Global dominants for the development of China’s trade policy: opportunities and threats for co-operation with Ukraine (Part 1. Definitive determinants of China’s foreign trade). Scientific Bulletin of Polissia, 1(13), 62–69.
Bulatova, O., & Panchenko, V. (2018). Regional trade agreements and the dialectics of protectionism and liberalism: New vectors of competitiveness. Bulletin of Mariupol State University. Series: Economics, 15, 114–125.
Chang, R., Kaltani, L., & Loayza, N. (2009). Openness can be good for growth: The role of policy complementarities. Journal of Development Economics, 90(1), 33–49. https://doi.org/10.1016/j.jdeveco.2008.06.011
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Dekhtyar, N. А. (2017). Studying the phenomenon of intrasectoral trade as a factor of competitiveness of country in foreign economic relations. Business Inform, 11, 67–74.
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Hur, J., & Park, C. (2012). Do free trade agreements increase economic growth of the member countries? World Development, 40(7), 1283–1294. https://doi.org/10.1016/j.worlddev.2011.12.006
Krueger, A. O. (1997). Free trade agreements versus customs unions. Journal of Development Economics, 54(1), 169–187. https://doi.org/10.1016/S0304-3878(97)00032-1
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Kyianytsia, L. L. (2019). The One Belt One Road initiative as a new silk road: The (potential) place of Ukraine. Ukrainian Policymaker, 4, 21–26. https://doi.org/10.29202/up/4/3
Limao, N. (2006). Preferential versus multilateral trade liberalization: Evidence and open questions. World Trade Review, 5(2), 155–176. https://doi.org/10.1017/S1474745606002734
Ma, B., & Soroka, L. (2020). International legal regulation of the missile technology control regime in the aspect of private space company activities. Advanced Space Law, 5, 58–70. https://doi.org/10.29202/asl/2020/5/6
MacPhee, C., & Sattayanuwat, W. (2014). Consequence of regional trade agreements to developing countries. Journal of Economic Integration, 29(1), 64–94. https://doi.org/10.11130/jei.2014.29.1.64
Melnyk, T. (2018). Ukraine and its future in a globalised international community. Ukrainian Policymaker, 3, 17–28. https://doi.org/10.29202/up/3/3
Ministry for Development of Economy, Trade and Agriculture of Ukraine. (2020). Regіonal’nі torgovel’nі ugodi. https://www.me.gov.ua/Documents/MoreDetails?lang=uk-UA&id=04fd6562-0d40-4133-9401-8ada1d0ba4e3&title=RegionalniTorgovelniUgodi
Możgin, M. (2018). Ukraine in a geopolitical game between the West and the Russian Federation. Ukrainian Policymaker, 3, 36–42. https://doi.org/10.29202/up/3/5
Naveh, M. H., Torosyan, T., & Jalaee, S. A. (2012). Regional economic integration and its effects on economic growth and economic welfare. World Applied Sciences Journal, 17(10), 1349–1355.
Raišienė, A. G., Yatsenko, O., Nitsenko, V., Karasova, N., & Vojtovicova, A. (2019). Global dominants of Chinese trade policy development: Opportunities and threats for cooperation with Ukraine. Journal of International Studies, 12(1), 193–207. https://doi.org/10.14254/2071-8330.2019/12-1/13
Reznikova, N., & Ivashchenko, O. (2015). Prospects of signing regional trade agreements in North Eastern Asia and their potential economic effects: Aspects of neo dependency in the context of new regionalism. Investytsiyi: praktyka ta dosvid, 21, 29–34.
Romanova, T., & Davydenko, L. (2021). Integration and integration processes: Essence, effects and consequences for the economy. Österreichisches Multiscience Journal, 1(38), 13–17.
Schiff, M. W. (2000). Multilateral trade liberalization, political disintegration and the choice of free trade agreements versus customs unions (World Bank Policy Research Working Paper No. 2350). https://ssrn.com/abstract=229607
Sokiran, M. (2020). National space activities: Modern realities and legal challenges. Advanced Space Law, 5, 101–107. https://doi.org/10.29202/asl/2020/5/11
Svyrydenko, D., & Stovpets, O. (2020). Cultural and economic strategies of modern China: In search of the cooperation models across the global world. Future Human Image, 13, 102–112. https://doi.org/10.29202/fhi/13/11
The Global Economy. (2020). Ukraine: Terms of trade. https://www.theglobaleconomy.com/Ukraine/Terms_of_trade/
Thirlwall, A. (2000). Trade, trade liberalization and economic growth: Theory and evidence (Economic research paper No 63). https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/00157660-EN-ERP-63.PDF
Tinbergen, J. (1962). Shaping the World Economy: Suggestions for an International Economic Policy. The Twentieth Century Fund, New York.
Trofymchuk, A. P. (2017). Foreign trade cooperation between Ukraine and East Asia countries in the context of globalization [Disertation]. Ivan Franko National University of Lviv.
Tsygankova, T., Obolenska, T. Y., Yatsenko О., Lyskova, L. M., & Sovenko, O. I. (2020). Priority formats of trade integration of countries. Financial and Credit Activity: Problems of Theory and Practice, 3(34), 460–469. https://doi.org/10.18371/fcaptp.v3i34.215601
Ukraine National Debt. (2020). Public debt went up in Ukraine. https://countryeconomy.com/national-debt/ukraine
Ukraine Total Investment. (2020). Ukraine: Public debt. https://www.quandl.com/
Vicard, V. (2009). On trade creation and regional trade agreements: Does depth matter? Review of World Economics, 145(2), 167–187. https://doi.org/10.1007/s10290-009-0010-9
World Bank. (2020). https://data.worldbank.org/
World Trade Organization. (2020). https://www.wto.org/index.htm
World Trade Organization. (2021). Regional trade agreements. https://www.wto.org/english/tratop_e/region_e/region_e.htm
Yatsenko, O., Meyers, W., Iatsenko, O., & Biletska, I. (2018). Modeling of development processes of bilateral trade and economic integration between countries. Economic Annals-ХХI, 168(11–12), 18–23. https://doi.org/10.21003/ea.V168-04