Merchandise Export of Ukraine to Eastern Europe: Constant Market Share Analysis
Bakaiev L. O., Bakaieva I. G.

Bakaiev, Leonid O., and Bakaieva, Iryna G. (2020) “Merchandise Export of Ukraine to Eastern Europe: Constant Market Share Analysis.” The Problems of Economy 2:7–16.
https://doi.org/10.32983/2222-0712-2020-2-7-16

Section: World economy and international relations

UDC 339.5 (477)

Abstract:
The aim of the article is to analyze the evolution of the market share of Ukrainian merchandise exports in world exports in the period 2013–2018, in accordance with Standard International Trade Classification (SITC) and the classification of countries of Eastern Europe developed by UNCTAD. The evolution of the Ukrainian export market share is analyzed using the constant market share methodology proposed by A. Nyssens and G. Poullet. The changes in the Ukrainian export market share under the influence of competitiveness factors (commodity and geographical effects of the market share) as well as the changes in the commodity and geographical structure of goods export (commodity and geographical structure effects) are calculated. For the analysis, the study uses the data for 2013–2018, which are divided into six periods (2013–2014, 2014–2015, 2015–2016, 2016–2017, 2017–2018, 2013–2018) by averaging the corresponding annual results. The total share of Ukraine in world exports during the period 2013-2018 was declining annually by 4.9 %. The first three periods are characterized by a significant drop in the market share by an average of 10.9 % per year. But in the period 2017–2018 the growth rate of merchandise exports of Ukraine was lower than the growth rate of world merchandise exports, which led to a negative value of the overall effect (-0.9 %). In 2013–2018, the market share effect (MSE), with an average annual decrease (-4.2 %), was the dominant factor influencing the changes in the total market share (-4.9 %). The contribution of the combined structure effect (CSE) was on average negative for the period 2014–2018 (-0.7 %). In the period 2017–2018, a drop in overall effect was associated with CSE (-2.7 %). The combined effect of the commodity and geographical structure of Ukrainian merchandise exports was negative in the period 2017–2018 (-2.7 %), in particular, due to the adverse influence of the predominantly product structure effect (-3.5 %) and the positive effect of the geographical structure effect (1.3 %).

Keywords: merchandise export of Ukraine, constant market share analysis, market share effect, combined structure effect, product structure effect, geographical structure effect, mixed structure effect.

Tabl.: 7. Formulae: 8. Bibl.: 14.

Bakaiev Leonid O. – Doctor of Sciences (Economics), Professor, Professor, Department of Management, Public Management and Administration, State University of Infrastructure and Technology (of. 19, 9 Kyrylivska Str., Kyiv, 04071, Ukraine)
Email: leon101950@gmail.com
Bakaieva Iryna G. – Candidate of Sciences (Economics), Professor, Professor, Department of Management and International Economic Relations, V.I. Vernadsky Taurida National University (33 Dzhona Makkeina Str., Kyiv, 02000, Ukraine)
Email: bakaeva-ig@ukr.net

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