Competitive advantages of Ukrainian border regions under the conditions of European integration processes

Abstract

Trade liberalisation and intensification of European integration processes are important factors that influence economic development of Ukrainian border regions. This paper presents a methodological approach to assessing the competitive advantages of border regions under integration prospects into global value chains. The proposed approach takes into account the framework of world indices of competitiveness and investment attractiveness, peculiarities of border regions, modern trends in world economic processes. The integral index of competitiveness of these regions has been calculated. It is substantiated that the border regions’ economy is in the process of transformation and its development is increasingly determined by innovations and efficiency. Integration of their economy into value chains by processing toll raw materials and its subsequent export determines its place in global production networks with the lowest share of value added. Consequently, low wages and border location today still remain the determining factors in shaping of border regions’ competitive advantages.