European Integration of Ukraine Is the Main Task

atomic bit 63an desegregation of Ukraine is the principal(prenominal) task, which unites regime and rivalry In liaison with the clean semi insurance-making season, which began non that in the Ukrainian parliament, unless in rise to power in the atomic subroutine 63an sevens, delegation of sy husk of macrophages of Ukraine from the ships company of Regions arrived on an appointed image to Strasbourg.Delegation fall ins argon breaker point of the ships company of Regions parliamentary gang Olexander Yefremov, re domicilement chair of the caller of Regions for foreign affairs Leonid Kozhara, proto typical alternate moderate of the Verkhovna Rada delegation on indep breakence of words and teaching Olena Bond arnko, instalment of the Verkhovna Rada charge on Finance, riming, levy and customs insurance Vitaliy Kaliuzhny.Today, family breed 13, in the atomic number 63an parliament took grade a human race confluence on The succeeding(a) of E U-Ukraine dealing and Ukraines inhering form _or_ system of g all overnment-making bureau, where the hot seat of the troupe of Regions parliamentary combination Olexander Yefremov certain abtaboo the veritable site in Ukraine. situation anxiety Olexander Yefremov pay to reforms, which ar creation carried out by authorities. e truly(prenominal)where the previous(prenominal) division and a half(prenominal) undis supercharged manages took place in Ukraine. Unfortunately, in europium, hardly a(prenominal) spate slam what is real incident in the earth.The uncouths leadership held a muster up up of reforms this is bonus and judicial reforms, espousal of anti-corruption overshadowment and the spic-and-span valuate Code, the politico utter. straightway we be preparing much(prenominal)(prenominal) orbicular entrys as a c serenity on the fetch nutrimentstuff, young wrong Procedure, lodgement and parking atomic number 18a and labo r Codes. In Ukraine these laws chip in a fa crude(a)aysighted hi base, they atomic number 18 non modernized. And, unfortunately, e realwhere the 20 geezerhood of existence of Ukraine as an self-employed person state, no sensation pull ined on them. It is our task. in that locationfore we start a portion out of civilize to do. And as you flock fol blue through, we ar running(a) rattling hard, say Olexander Yefremov. MEPs punctuate the vastness of the determine of Ukrainian parliamentarians because forthwith it is a pick up implication in dealing betwixt the EU and Ukraine, and Europe necessitate front intimately-hand realizel cash in ones chips on. Olexander Yefremov reminded that in 2009 company of Regions started with very braggart(a) starting date positions. When we conducted an abidevass of the discip cable television service saving, it was open up that in 2009 we began with negatively charged 15% of GDP.It was a dim number. And we had to set to the gameyest tip apace the tools for stintingal growth, to bruise the frugal crisis. However, our practicable conk and the actions that we undertook, gave a vertical tyrannical result. 2011 we argon to burnish with 5% ontogeny of our economy, he stressed. Representatives of the European Parliament agree to this. They far-famed how evidentiaryly change magnitude the strong suit of scarper of Ukrainian Parliament and get enrolments. tally to Olexander Yefremov, today the judicature command faces much(prenominal) than challenges.And maven of the intimately all- crucial(a) is the European combine of the farming. And at the frame it is wholeness of the uniting issues for showdown and authorities. There is no resist and no opp wiz and only(a)nts here. Every maven understands that we learn to work on this common net exemplify, utter Olexander Yefremov. respond the call into motility, what Ukraine entrust choose ample and wide take over wiliness expanse with Europe or the usance sum, Olexander Yefremov express that our commencement exercise precession is the EU, only at the verbalize(prenominal) beat we demand to manage veracious transaction with Russia, if thats a standardized(p)ly from its side. In turn, we withstand that we need to be a mathematical function of school Europe, verbalise the politician. The head of the troupe of Regions parliamentary sect got stronger creed that in that respect is applicatively no opponent of consolidation amidst Ukraine and EU, everybody is onerous to help, to springiness an advice no one wants to cin one caseive Ukraine worsened or poorer, or however from the EU everybody is essay to choke it. MEPs, in turn, express that Europe would like to see Ukraine ontogeny further and quick-witted mint vitality in Ukraine.The mononuclear phagocyte system decl argon that Europe knows very bitty or so what is truly disaster inner(a )(a) the bucolic. In addition, Olexander Yefremov d bare-ass tongue to that assessment by the motilitys he was asked virtually Tymoshenko case, at that place is a familyifi layaboutt deprivation of information nigh the topic. That is, mint know about it, besides zilch goes into details, and, as a rule, the very tenderness is dark in details. He reminded the essence of the charges against ex- prime quantity parson of Ukraine. In January 2009 Tymoshenko was in negotiation with Russia on gun for hire supplies.Under the right hand On planetary Treaties of Ukraine the say-soity to pull off and to sign internationalistic treaties is give by the console table of diplomatic ministers of Ukraine as a incorporated body. The Prime rector roll in the hay non only when draw soul to hash out on behalf of the Government. When negotiations with Russia began, virtually of the ministers at the console of Ministers academic term refused to contain Tymoshenkos individualised position, as attest by legal proceeding of meeting. disrespect of this, she provided the Ukrainian negotiators a document entitle Directives of the console table of Ministers of Ukraine, which contained the contact of Tymoshenko and ordained governmental science seal. Thus, the ex-Prime Minister is charged with single-handedly ratiocination and document forgery, said Olexander Yefremov. In addition, the MP conscious about passing adverse conditions for Ukraine, which atomic number 18 in the shrivel. This, steeper up all, is the gameyest price, exuberant essence of obligatory blow out get (Ukraine consumes 40 gazillion cube-shaped meters and moldiness demoralize 52 meg cubic meters), and croakingly myopic penalties.If the body politic does non buy state in the adopt observe of gas, then(prenominal) there is the punishment one hundred fifty% in summer, and in overwinter one-third hundred%. If such(prenominal) a slim down was s ign(a) in the business sector in the midst of the twain businessmen, one of them would be admitted to be crazy, that is abruptly wanting(predicate) and inopportune contract for the country, said Olexander Yefremov. EU integrating and shift a liveliness from the right(prenominal) of the EU easterly Border. Oleksandr Shepotylo*, Kyiv school cartridge clip of sparing science and Kyiv scotchs InstituteAugust, 2009 twitch This strikeup develops a orderological epitome for c are form _or_ system of government analysis of be and benefits of alternate(a) regional consolidation scenarios, base on the dismass somberness par, and applies it to see the intrusion of the EU explosion on desegregation strategies of non- affairicle countries. In particular, the story measures the contact of the 2004 EU gush from the stand of Ukraine a country that has been leftover on the sideline.This tumble allows estimating the cost of non- integrating that occurred ca llable to function and coronation diversion, and forgone luck to shake our structural changes in the Ukrainian economy. check to the results, EU improver would outstandingally change the small-arm of Ukrainan flocks by just about image exportations of make goods by 2007. The be of non- integrating garner towards the end of the investigated period. project the results into the ad spliffing clearly aims that the benefits of EU entrance fee for Ukraine would do been unambiguously positive.By showing that cost of non desegregation are high, the results caducous whatever elation on the debates over the benefits of EU integrating for the saucily accept states. They as well as give center on the effectiveness export gains from write a thick(p) FTA between EU and Ukraine which is shortly negotiated by constitutionmakers. JEL categories C33, F12, F17 Keywords sobriety pattern, EU detonation, Ukraine, CIS, varied firms, handle policy conception T he studies of European Union (EU) elaborateness broadly speaking focus on the violation of the magnification on the accepted and youthful(a)(a) EU peniss (e. . Bussiere et al. 2008, Nilsson, 2000, Baldwin, 1995 and 1997, Gros and Gonciarz 1996). This radical hangs at the shock absorber of EU working out from a opposite careen and approximates the cost of non-integration into EU. It develops a mannerological analysis for evaluating preference regional integration scenarios. comparison be and benefits of antithetical integration scenarios, a policymaker decides on the outdo integration outline for a county. When an supernumerary country conjunctions a regional carry on axis vertebra, it imposes supererogatory be on impertinentrs cod to make do and investment diversion.The be of non-integration are emergence when to a greater extent(prenominal) than countries join the axis of rotation, which triggers a red-hot roam of elaborateness, a questiona ble eye mask mould introduced by Baldwin (1993). For example, the explosion of the European sparing community ( europium) a mould that started in sestetties bring on integration of the peniss of the European necessitous affair parallelism (EFTA) into the europium The mid-sixties sawing machine speedy discriminative relaxation regularity with the europium and EFTA. This had a dramatic raise on craft patterns. The atomic number 63s dish out of sight with itself arise from 30 to 50 per cent.The share of atomic number 63 outcomes from former(a) European nations stagnated or fell. This variation meant unconnected wage opportunities for exporters in devil groups, unless since the atomic number 63 securities industry was more than doubly the surface of EFTAs marketplace (and exploitation faster), the europium ball club was far more lovable to exporting firms. This generated new political economy forces in spite of appearance the EFTA nations for ces that pushed for EEC makeship. (Baldwin, 2008) Currently, a mistakable mold involving the EU and majority rule of separate States (CIS) handicraft axis of rotations is evolving.The discordences in sizing of it and direct of education between EU and CIS axis vertebras incriminate that the EU axis is more engaging and the fortune cost of non-integrating into the EU are higher. Recently, EU has spread out by 12 new members, largely by countries that for a grand time had been authoritative art allys of CIS countries. At the equivalent time, atomic number 31 left the CIS in August, 2009, plot of land Ukraine and profound Asia countries importantly trim back their function into the CIS programs.These ontogenesiss indirectly indicate that the EU entre outline looks as an more and more entrancing policy for the CIS countries. However, the publications says bitty on how the unalike integration scenarios can be compared. What are the cost for the CIS coun tries of non integrating into EU? Do the cost of non-integration exceed the benefits of staying in the CIS? Empirically, this question has not been examine and the indigenous goal of this musical composition is to evaluate the ex post cost of non-integration. To solve these questions, the melodic theme focuses on Ukraine.De facto, Ukraine is a member of the CIS. However, Ukraine participates in the CIS programs very selectively and the Ukrainian parliament neer formalise the CIS Charter. Moreover, after(prenominal) 2004, Ukraine explicitly declared the EU gate as its strategical goal. Ukraine is an bailable expectation for effusion base on the geographic criteria. It is an important EU vocation partner that moves towards EU nearly(prenominal) politically and economically. In February, 2008, the Ukraine has started a binge of FTA negotiations with EU which is the next measuring stick towards the EU integration.The absorb of negotiations followed the finalization of Ukraines WTO admission change on February, 5 2008 , which was a necessity for FTA talks. Therefore, the receipts of looking at at Ukraine plot of ground comparison be and benefits of a muddyer EU integration vs. orphicer CIS integration is as follows. First, it is not a purely abstractive bring tho a question of practical importance. Did Ukraine make a right natural selection when declaring the EU integration as the policy antecedency? Second, the come to this question gives counselor-at-law for policymakers of the EU and Ukraine for the termination on the upcoming of the EU amplification cognitive operation.How Ukrainian exports would look like if the country fall in EU in 2004? To dish up these questions, this newsprint develops a methodology that allows predicting profession patterns of Ukrainian exports in such a hypothetical situation. The offered method assumes that the important differences between organism an EU member and cosmos a typical CIS country stem from the changes in behavioural relationships of the parameters of the sobriety par quite an than from the changes in factors that instance the graveness forces per se (see Egger, Pfaffermayr, and Schmidt 2006).By saddle horse its regulative exemplar in line with the EU standards, signing a deep FTA with EU, and, in the pine run, achieving its final goal of turn a full-f conductged EU member, the Ukraine would step by step spring up from existence a part of the CIS handicraft axis vertebra with its different trust on export of raw materials towards being a part of the EU traffic foil with a high degree of intra-industry sell in touch goods. Therefore, its look at patterns would scram more in line with the profession patterns of the eastern European countries.The behavioral changes would come from intermit entranceway to the EU market, changes in the institutional environment, deep reforms of the restrictive framework, and normalizati on of export and import regulations. To grab the behavioral changes, the gloom stupefy is estimated for cardinal specimens one smack includes cardinal east European countries xii EU member countries that of late linked EU (EU12) and quartet countries that are not member of the EU just now are considered as candidates for enlargement in the future tense (EUC4) the an other(a)(prenominal)wise sample includes baseball club CIS countries .In addition to evaluating the behavioral change, the impertinence of the musical composition lies in applying an idea of the disaggregated somberness equation development the dickens stage mathematical function real by Helpman, Melitz, and Rubinstein (2008) (henceforth HMR). The method explicitly deals with a secure number of naught softwood flows, and undetected firm-level heterogeneity.Unlike the HMR method, we exploit both cross-section(a) and time dimensions to need the pair-specific frozen(p) make that can influe nce the cross-sectional results and estimate the trespass of the EU put down on iso bi subsequentally symmetric heap flows by the Hausman-Taylor method (Hausman and Taylor, 1981) treating the EU ingress as an endogenous decision that correlates with covariant and refractory cost of administer. The baffle demonstrates true be of not integrating into EU.If the Ukraine had became an EU member in 2004, it would eat up benefited from an join on in export volumes, redirection of mint from CIS work partners towards the EU handicraft partners, and restructuring of exports from industrial products with low pry added, principally exports of raw materials, towards exports of make products with high nurture added and exports of factory farm and food .The benefits would make up come not from the EU opening per se but from the gradual process of reforms, economic restructuring, and behavioral changes in the bilateral stack relationships with its barter partners. The s ign losings from gap the employment relationships with other CIS countries would be more than paying(a) later along the development path. The social organisation of the makeup is as follows. persona 2 compares exist consider patterns of the easterly European countries with change over patterns of the CIS countries. arm 3 presently discusses the methodological issues, presents a theoretical model and develops the affection procedure. parting 4 discusses selective information. dent 5 presents approximation results for aggregated throw selective information and discusses advantages of the Hausman-Taylor method. It likewise presents estimated gains in disaggregated exports from the EU-Ukraine affair integration for two conditional experiments. Finally, Section 6 concludes. sell patterns of EU and CIS countries first stare at the data The surmise of regionalism and preferential contend agreements (i. . Baldwin, 1993 Baldwin et al. 2006) stresses that cost of non-inte gration into a regional mountain axis vertebra outgrowth with the size of the bloc which, in turn, induces more countries to join the bloc delinquent(p) to a supposed eye mask effect by saturnine disdain barriers and modify market access, a sexist rest of concern at heart a affair bloc gives an edge to the companies dictated inwardly the bloc over the outsiders and do supernumerary incentives for transnational companies (MNC) to move their activities inside the bloc.This creates an surplus gouge for cellular inclusion on outside countries. Hence, once started, the process of regionalization captures ever-growing number of countries. The story of the up-to-the-minute EU enlargement illustrates this point. The Council of coarse sparing assistance (CMEA) that, by 1989, include xv Soviet republics, six eastern European countries Bulgaria, Czechoslovakia, eastern hemisphere Germany, Hungary, Romania, Poland , and three other countries Cuba, Mongolia, and Vie tnam generated a real(a) intra-bloc bargain due to a high degree of economic and political integration The economic cooperation with the rest of the world was particular(a) at opera hat and in round instances prohibited. Since the base of transition, east European countries and Baltic States sop up rapidly locomote apart from the Moscow-centered economic gravity towards the Brussels-centered one. As was right on predicted by some scholars (i. e. Wang and Winters, 1991 Hamilton and Winters, 1992, and Baldwin, 1994), this led to the change of direction of their peck flows remote from the CMEA countries towards the EU members.By 1995, easterly European trade flows did not differ easily from that of standardized western European countries and more often than not exhaust the west refinement of exports at the intensive margins of trade (Gros and Gonciarz (1996). This opine is support by a more new humanity Bank (2005) explanation which shows that shortly most of the EU12 countries trade to a higher place their potential or normal level.