Factors of the socio-economic divergence between Ukraine and the European Union

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Article(UKR)(.pdf)

The article dwells upon the processes of convergence and divergence of social and economic systems of Ukraine and the European Union. Author describes the results of the European integration process of Ukraine, achieved over the past five years. It is statistically substantiated that such mechanisms of European integration as the implementation of the Association Agreement with the EU, the introduction of a “no-visa” and deep free trade zone, formally pro-European socio-economic reforms in recent years, etc., do not provide the expected macroeconomic, institutional, integration and convergence effect for Ukraine. According to the results of the convergence processes analysis by the criterion of GDP per capita and the construction of econometric models, the formation of a clear trend of social and economic divergence of Ukraine and the EU in 2014-2018 is indicated together with the need for its break-up. Papers justifies the influence of key exogenous factors in relation to Ukraine that determine the deployment of processes of socio-economic convergence (divergence) between Ukraine and the EU; their grouping is done based on the belonging to the global and regional dimension; the main directions of the national state policy, necessary for taking into account the action of these exogenous factors, are indicated. A number of factors related to the functioning of the European Union are analyzed and described in detail, including the implementation of the Association Agreement between Ukraine and the EU; the EU’s resource constraints to accelerate the integration of the applicant countries; the growth of European disintegration tendencies under the influence of Brexit, as well as the institutional transformations in the EU. Based on the conducted analysis, proposals are suggested for the priority steps of the domestic state policy aimed at overcoming the socio-economic divergence of Ukraine and the EU, which includes the introduction of appropriate adjustments to the legal framework of Ukraine and its programmatic strategic documents.

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