The model of economic cooperation systems in the context of implementation of the “One Belt One Road” initiative
Year: 2024
Type: article
Abstract: Purpose. To develop recommendations on the effectiveness of economic cooperation between Ukraine and China in the context of the implementation of the One Belt One Road initiative (BRI), using the gravity model of trade to analyze the factors influencing such cooperation. Methodology. Analysis of scientific literature and Internet sources – to determine the purpose and objectives of the research; formalization methods – to describe the characteristics, dynamics and states of the gravity model of trade; methods of the theory of the gravity model of trade – to analyze factors affecting bilateral trade and the construction of a model of economic cooperation between China and Ukraine. Findings. A gravity model of trade between China and Ukraine was developed in the context of the implementation of the “One Belt One Road” initiative, which illustrates the influence on bilateral trade of such factors as the size of the economy, the level of demand, port infrastructure, the logistics efficiency index, participation in international organizations and bilateral mutual recognition agreements. It has been proven that the geographical distance and time of trade registration have a negative effect on the efficiency of bilateral trade. Institutional factors also play a key role in bilateral trade. Originality. For the first time, the use of the gravity model of trade has been proposed to assess factors influencing bilateral economic cooperation between China and Ukraine, which contributes to the identification of key factors influencing such cooperation. It has been proven that the dynamics of bilateral trade relations are significantly influenced by the factor of institutional stability and infrastructure development. Practical value. The proposed approach makes it possible to formulate proposals regarding the formation of economic policy aimed at strengthening trade cooperation along the BRI path. They include strengthening infrastructure construction, promoting multilateral cooperation, creating effective mechanisms for economic and trade cooperation, accelerating the development of the free trade area within the framework of the BRI, removing trade barriers, strengthening environmental trade management, and unlocking the trade potential of the BRI countries.
Authors: M Yastrubskyy, Zh Wang, Q Zhang, S Pavlovskyi
Language: English
Topic: Belt and Road Initiative
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4401989409