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Sectoral Distortions and Service Protection in Russia: A Comparison with Benchmark Emerging Markets and EU Accession Candidates

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  • Rolf J. Langhammer

Abstract

Recent research on gains for Russia from World Trade Organization membership concludes that service trade liberalization through allowing foreign suppliers to invest in Russian service industries promises large gains. Comparing Organization for Economic Cooperation and Development estimates on effective rates of protection with and without intermediate services for several countries, the paper shows that almost all Russian service industries effectively get taxed due to high tax equivalents for services. Options for European Neighborhood Policy must be based on reciprocity: To access the Russian market, the European Union must open its service markets to Russian companies.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.

Volume (Year): 46 (2008)
Issue (Month): 6 (November)
Pages: 70-83

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Handle: RePEc:mes:eaeuec:v:46:y:2008:i:6:p:70-83

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044

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  1. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
  2. Philippa Dee, 2005. "East Asian Economic Integration and its Impact on Future Growth," Asia Pacific Economic Papers 350, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  3. Jensen, Jesper & Rutherford, Thomas & Tarr, David, 2004. "The impact of liberalizing barriers to foreign direct investment in services - the case of Russian accession to the World Trade Organization," Policy Research Working Paper Series 3391, The World Bank.
  4. James Markusen & Thomas Rutherford & David Tarr, 2005. "Trade and direct investment in producer services and the domestic market for expertise," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 758-777, August.
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Cited by:
  1. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Other Operational Studies 13052, The World Bank.

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