Ksenia Yudaeva (Centre for Economic and Financial Research (CEFIR), and Carnegie Endowment for International Peace)
Abstract
The process of opening and integration into the world economy in the CIS countries has been part of a more complex process of transition from the planned to market economy. Over the last 10 years most of these countries have liberalized their trade regimes versus non-CIS countries, introduced their own currency, and to some extent liberalized flows of direct and portfolio investment. These and other reforms were accompanied by a pronounced output decline, an increase in poverty rates and inequality indexes. Of course, most of these changes in output and income inequality are attributable to the transition process. However, it is still interesting to know whether globalization and trade opening have enhanced or, on the contrary, decreased the negative effect of transition on incomes in transition countries. Comparison of outcomes in various countries suggests that trade policy per se was less important than the ability of governments to enforce it. Countries, where reforms were implemented slowly, but the government institutions did not collapse, experienced smaller overall output decline, and smaller increase in inequality. Countries with weak governments often performed as “passive globalizers”: the trade-to-GDP ratios in them were quite high, partly accounting for capital flight. In contrast to active globalizers, output in these countries declined, while poverty and inequality increased. However, the worst results were seen in countries cut off from international trade, because of being landlocked or at war or in bad economic relations with the neighboring countries.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number
w0025.
Length: 35 pages Date of creation: Dec 2002 Date of revision: Handle: RePEc:cfr:cefirw:w0025
Contact details of provider: Postal: 117418 Russia, Moscow, Nakhimovsky pr., 47, office 720 Phone: +7 (495) 105 50 02 Fax: +7 (495) 105 50 03 Email: Web page: http://www.cefir.ru More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Julia Babich) The email address of this maintainer does not seem to be valid anymore. Please ask Julia Babich to update the entry or send us the correct address..
Related research
Keywords:
Other versions of this item:
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)