Analysis Of The Political And Economic Effect Of Sino-Ukraine Bilateral Economic And Trade Cooperation

Cooperation between China and Ukraine has been developing continuously for about twenty years. Ever since Ukraine became an independent country, it maintains close high-level contacts with China. Nowadays in order to further strengthen and deepen bilateral cooperation the two countries should keep consistent in maintain the highest level contacts.The necessity to optimize the structure and scale of Sino-Ukraine economic and trade relations requires using a series of different measures of international economic relations:from direct commodity and service trade to the complicated model of production and technical cooperation, the interaction in terms of investment and innovation, developing of a more effective method to utilize the intellectual potential and human resources of the strategic partner-country. Thus we should change the theoretical approach to analyze the role a country and trade itself play in promoting and regulating of Sino-Ukraine foreign economic activities and improving of Sino-Ukraine bilateral trading relationship.The modern scientists have developed a good number of the foreign trade models. Among others the series of empirical models for analysis of determining factor of cooperation contains a gravity model (Anderson, Keller, Helpman, Krugman, McCarron, Reading, Rose, etc.).The main idea of a trade gravity model consists in the following relevances, the export volume of one of the countries is proportional to the economic scale of both countries (because namely the economic scale of the countries determines supply and demand), and, the export volume of one of the countries is inversely proportional to the distance between the two countries (because the bigger the distance between two countries is, the greater commodity trade cost is).In accordance with the theory of the building and description of the gravity model, GDP of the exporting country reflects production capacity, and GDP of the importing country reflects capacity of its market. In general, these two variables are proportional to the volume of trade.This paper presents the model of the export and import trade flows between China and Ukraine.The primary target of this paper is to analyse the development of the potential of the Sino-Ukraine economic and trade cooperation, current situation in the field of the Sino-Ukraine commodity flows, and based on these results develop the method which can help in improving the commodity structure and increasing the commodity flows.