Effectiveness of trade and economic integration of asymmetric countries: Assessment methods and tools

Abstract

Despite the deepening trend of neo-protectionism and the exacerbation of disproportions in national economies, trade integration remains a relevant form of collaboration among countries worldwide and a driver of their innovation and technological development. The article provides comparative analysis of a number of methods for economic-statistical and management analysis that can be used to assess the impact of the economic asymmetry of partner countries on the effectiveness of their trade and economic integration, and shows that they have both certain potential for solving the task and a number of limitations. It is substantiated that the co-integration test is a promising instrument for testing the hypothesis about the expediency of trade integration of economically asymmetric partners. The presence of co-integration between bilateral trade indicators of asymmetric countries is to mean the synchronization of their dynamics and relative changes, despite differences in absolute values. Furthermore, confirmed cointegration of bilateral trade flows between countries can be considered as an indicator of adherence to market economy principles and the conditions of free trade, as well as an indicator of the level of integration of countries into the system of international economic relations. Prospects for further research consist in testing for the presence of indicators on bilateral trade between asymmetric partners co-integration on the example of particular pairs of countries that are parties to regional trade agreements being characterized by significant differences through the pace of economic development.