ANALYSIS OF THE INTERCONNECTION OF ECONOMIC SECTORS OF UKRAINE AND POLAND

Abstract

The article explores the structure of trade and economic cooperation between Ukraine and the Republic of Poland in the context of Ukraine’s deepening European integration. This cooperation plays a significant role for both countries, driven by geographic proximity and mutual interest in overcoming contemporary economic challenges affecting Europe. The research is motivated by the need to clarify the real nature of bilateral trade relations beyond general growth figures, focusing on the sectoral composition of trade flows. Analyzing the commodity structure of exports and imports allows for identifying intra-industry linkages that reflect the actual depth of integration between national economies. Given the transformational processes currently affecting Ukraine’s economy, including the adaptation to EU standards, the evaluation of intra-industry trade is both scientifically relevant and practically important. The methodology applied in this study is based on the calculation of the Grubel–Lloyd index for the main product groups using official trade statistics for 2024. Through these calculations, the article identifies key economic sectors where mutual trade intensity is the highest and highlights industries where inter-industry specialization persists. Particular attention is paid to agri-food products, metallurgical goods, machinery, chemical products, and other major trade items that form the core of Ukraine–Poland economic relations. The results demonstrate that while certain areas show signs of increasing intra-industry trade, the overall pattern still reflects a considerable level of asymmetry, characteristic of trade between developing and developed economies. This insight underlines the necessity of further modernization of Ukraine’s industrial potential and the development of joint production initiatives. From a practical perspective, the article provides evidence-based recommendations for enhancing bilateral cooperation, including the promotion of industrial parks, joint ventures, and integrated logistics chains that support deeper economic ties. These findings are valuable for policymakers, economists, and business communities involved in shaping Ukraine’s trade policy in line with its strategic goal of European integration.