The problems of transboundary cooperation development between Ukraine and the EU are addressed. Priority focuses are placed on the disproportionate development of the neighbouring border territories on different sides of the border. The main causes for the blocking of convergent processes in the transboundary space between Ukraine and the EU are identified. The presence of objective background for the rise and spread of institutional trap of cross-border divergence is proved. The key effects and the reasons for the establishment of this institutional trap are described.
The basic mechanisms of forming of cross-border divergence institutional trap at different stages of European integration of Ukraine are studied. Priority directions of the trap’s negative impact on the various links of cross-border cooperation between Ukraine and the EU are outlined. Potential ways to mitigate these effects in sectoral and functional profiles are determined. Main attention focuses on the importance of the quality of human and social capital to eradicate institutional trap of cross-border divergence.
Key areas to overcome the institutional trap of cross-border divergences between the EU and Ukraine are substantiated. Three primary planes of the priority efforts application for government and regional authorities on different sides of the border are allocated. The first plane is considered to be socio-psychological. It covers the traditions and mental attitudes that are associated with the rooting of institutional dysfunctions in cross-border cooperation between Ukraine and the EU. The second plane is the financial-economic one. It concerns economic interests and financial results of participants of the institutional trap of cross-border divergence. The third plane is the plane of organization and management solutions and regulatory policy. It sets the administrative leverage for destruction of institutional trap of cross-border divergence. First of all, it is applied for the development of business activities in the transboundary area between Ukraine and the EU, deregulation of cross-border markets, establishment of modern institutional forms of cross-border interactions, as well as introducing elements of the knowledge economy in near-border EU regions of Ukraine. 

institutional traps, cross-border divergence, cross-border cooperation, near-border regions, cross-border markets, border trade 

Major problems of cross-border cooperation development between Ukraine and the EU on the current stage of European integration are examined. The fact that economic convergence within the cross-border region «Ukraine-EU» reflects the success of cross-border cooperation is proved. This is stipulated by major tasks attributed to cross-border cooperation. Primarily, it refers to the leveling of limiting border function, equaling of social living standards on both sides of the border, activation of cross-border entrepreneurship and implementation of joint investment projects, directed at economy development of the whole cross-border region.
Special attention is paid to considerable role of human and demographic potential in terms of expansion of convergence processes in cross-border space between Ukraine and the EU. In particular, the fact that reduction of population and falling of its qualification level that happens under the conditions of strengthening of labour migration from bordering regions of the Western Ukraine into the EU countries leads to negative consequences is stressed. Primarily, it concerns worsening of the quality of labour resources used in the system of cross-border business and in the work of local governance bodies of bordering territorial communities, and public society institutes involved in cross-border cooperation.
The necessity of top priority development of cross-border labour markets is emphasized in order to increase the efficiency of exploitation of human and demographic potential of Ukraine’s bordering regions, first of all those bordering the EU. The fact that evolution of cross-border labour markets is accompanied by the leveling of labour costs within the whole cross-border region is proved. It promotes maintenance and recovery of human and demographic potential in the zones of cross-border space that are deemed to be depressed. Consequently, convergent processes are being activated and positive institutional impulses, directed at strengthening of bilateral integration in the social and economic space between Ukraine and the EU are being formed.
On this basis the range of proposals for state authorities operating at central and regional levels is suggested. Primary attention is proposed to be paid to the improvement of managers training quality and activation of informational and educational activity in bordering territorial communities of Ukraine aith attraction of specialists from EU countries.
Directions of increasing of local governance management efficiency in the bordering territories of Ukraine are separately outlined. In particular, it is related to improvement of their functional capacity in terms of conducting of administrative and territorial reform. Introduction of subsidiary principle into the practice of regional management of Ukraine’s bordering regions is the major principle of the reform. This will allow bringing their competence level closer to the requirements put before the local governance bodies of bordering territories of EU countries that border Ukraine. As the result, harmonization of institutional environment will take place and will positively influence the convergence and efficiency of human capacity exploitation in the «Ukraine-EU» cross-border region.
Special attention is paid to informational-educational, organizational-institutional and infrastructural components of development of cross-border region’s socio-economic space that encompasses bordering territories of Ukraine and of neighbouring Poland, Slovak Republic, Hungary and Romania. 

convergence, socio-economic space, cross-border region, EU, human and demographic potential 

In the article, the theoretical basics and practical aspects for the Ukrainian-Polish transborder region development at the current stage of the European integration have been studied. The accent has been made on the actualization of the problem after signing the EU-Ukraine Association Agreement. The increase of the role of the Ukrainian-Polish transborder region in the general system of the European transborder cooperation due to its geo-economical characteristics, considerable innovational development potential, and the quality of human capital assets has been grounded. It has been proved that activation of the economic cooperation in the Ukrainian-Polish transborder region is taking place not only under the influence of the EU integration factors, but also is stimulated by the domestic processes in the both states. Taking into consideration the above mentioned, the conclusion has been made that the acceleration of the economic development of the transborder region under this study will help to increase the effectiveness of functioning of both the Ukrainian and Polish economies in general. Considerable attention has been paid to the analysis of the institutional aspects of development of the Ukrainian-Polish transborder region, in particular, to the specification of the aspects of the Lisbon Agreement’spotential influence on its economy, the 2010-2020 State strategy of the regional development of Poland, and the State strategy of the regional development of Ukraine till 2020. On the basis of the conducted study, the key-goals of the Ukrainian-Polish transborder region development for the mid-range perspective have been set, namely, increasing of its competitiveness, convergence of the transborder zone on the basis of the integration processes activation, creating favorable institutional environment for the realization of the common events and projects of transborder character. To successfully meet the above mentioned goals, both the Ukrainian and Polish local authorities are proposed to pay their foremost attention to such priorities as levelling the social and economic development indexes of the eastern Polish provinces and western Ukrainian regions on the basis of coordination of their strategies and their own sector development programs; favorable investment climate forming, based on the use of the advantages of the international labor division within the whole transborder region; realization of the common investment projects in the key-spheres of the region’s economy, namely, in the agriculture, tourism and recreation, and education spheres, as well as the IT-technologies etc. 

cross-border region, European integration, EU Association Agreement, EU, Poland, Ukraine, economic cooperation