Economic Development in Poland and Ukraine: The Case of Foreign Trade

摘要

This paper assesses the market transformation of Poland and Ukraine. In 1989 in terms of per-capita Gross Domestic Product (GDP) Poland and Ukraine were at a comparable level. The paper ascertains the reasons why these two economies are significantly different after 26 years. The main focus is on trade developments. At the outset of market reforms, foreign trade reflected the economic structure inherited from the centrally planned era. As time passes, foreign direct investments (FDI) affects both the range of commodities and pattern of trade leading to different economic structures and institutional changes for Poland and Ukraine. We thank Michael Stembach, Tomer Shachmurove, Anna Bogajewska and Aleksandra Wojciechowska-Refermat for their excellent research assistance. The preliminary version of this paper was presented at the CASE - Center for Social and Economic Research 25th Anniversary Conference. 17-18 November 2016. Warsaw.