Page 29 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 23-33

- substantial correlation (0.50-0.75): Cyprus, Denmark, Hungary, Latvia,
Lithuania, Poland;
- weak correlation (0.25-0.50): France, Germany, Romania, Sweden;
- low correlation (below 0.25): Belgium, Ireland, Luxemburg, Malta, the
Netherlands, United Kingdom.
The highest competition in services is with Southern Europe (the highest
correlation 0.98 is with Greece), while the lowest is with Benelux countries and
British Islands (especially negative correlation -0.31 with Ireland).
3.2 Bilateral trade links
In 2015 the EU traded in goods 5 times more with Turkey than with Ukraine,
although before the crisis of 2014-15 in Ukraine the difference was only 3-4 times.
In 2014 Turkey was 2.6 times more important market for the EU services exports
than Ukraine. The difference was even 6 times for the EU services imports.
But there are some industries where Ukraine is more important market for the
EU exporters (see table 1) including insecticides and similar products, coal industry,
natural gas, worn clothing, coffee, fishing industry, eggs and fruits. Ukraine is a
more important supplier especially in case of cereals, iron and steel industry,
vegetable oil and seeds, feeding staff for animals, wood and wood manufacture,
electric current, coal industry etc. (see table 2). E.g. 10% of iron ore and
concentrates imported by the EU originate in Ukraine.
Table 1. Industries / products where Ukraine is larger market for the EU
exports than Turkey, 2015.
EU export products Exports to Ukraine minus Exports to Ukraine,
exports to Turkey, $ mln times exports to Turkey
Insecticides and similar 164 1.7
products
Coal industry 142 5.8
Natural gas 116 6.7
Worn clothing 78 3.3
Coffee 59 2.3
Fishing industry 38 2.9
Eggs 18 1.9
Fruits 12 1.1
Source: calculations based on UNCTAD data.

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