Regions of Ukraine: International and Retail Trade in 2016

Abstract

International trade in Ukraine’s regions during 2016 is analyzed. The taxonomy method is used to carry out a multidimensional analysis of the state of trade in all regions, with the goal of determining their attractiveness with respect to investment and international cooperation. Key indicators were chosen to be: export and import of services, export and import of goods, balance of the trade of services, balance of the trade of goods, and retail trade. Using the standardized matrix of statistical values, provided by Ukraine’s national statistics agency, the level of development of each region was determined, as well as its rating. A comparison of this year’s ratings with those of the previous two years is carried out. Based on the calculated inter-regional distance matrix, calculated in the context of the seven chosen parameters, nonlinear structures of regional connections are constructed. Using them, clusters of regions can be constructed that take into account trade dynamics and other economic activity. The constructed linear and nonlinear connection structure of Ukraine’s regions can become the basis of fruitful cooperation in the area of trade. They can also be used when carrying out mutual investment projects and when regulating the exchange of goods between Ukraine’s regions. The determination of the regions’ ratings and the nonlinear structures of their trade relations can provide valuable information to investors both foreign and domestic.