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Estimation of the Russia’s trade policy options with the help of the Computable General Equilibrium Model

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Author Info

  • Alexander Alekseev

    ()
    (New Economic School/CEFIR)

  • Natalia Tourdyeva

    ()
    (CEFIR, NES)

  • Ksenia Yudaeva

    (CSR, Carnegie Endowment for International Peace, NES)

Abstract

The computable general equilibrium model was used in assessing different Russia’s trade policy options. The base experiment lying in the core of our investigation is simulation of the EU eastward enlargement. According to our calculations Russia does not loose in the resulting equilibrium. This is not a zero-sum process from a point of view of Russia’s social welfare. The other experiments are: simulation of Russia’s WTO accession and creation of the Common European Economic Space. Change in the tariffs associated with the possible WTO accession is so small relative to the existing level of tariffs, that it does not give a significant change in the Russian economic environment. Significant changes are associated with the creation of the CEES as a free trade area between Russia and the enlarged Europe. If an FTA agreement will cover all goods and services, this will give a negative effect on the Russian economy.

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Bibliographic Info

Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0042.

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Length: 62 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:cfr:cefirw:w0042

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Related research

Keywords: CGE models; enlargement of the European Union; Russia’s WTO accession; Free Trade Area;

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References

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  1. Sonin, Konstantin, 2003. "Why the rich may favor poor protection of property rights," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 715-731, December.
  2. Timothy Besley & Stephen Coate, 2003. "Elected Versus Appointed Regulators: Theory and Evidence," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1176-1206, 09.
  3. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
  4. Sonin, Konstantin, 2003. "Provincial Protectionism," CEPR Discussion Papers 3973, C.E.P.R. Discussion Papers.
  5. Grossman, G.M. & Helpman, E., 1993. "The Politics of Free Trade Agreements," Papers 166, Princeton, Woodrow Wilson School - Public and International Affairs.
  6. Glaeser, Edward & Scheinkman, Jose & Shleifer, Andrei, 2003. "The injustice of inequality," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 199-222, January.
  7. Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
  8. Hellman, Joel S. & Jones, Geraint & Kaufmann, daniel, 2000. ""Seize the state, seize the day": state capture, corruption, and influence in transition," Policy Research Working Paper Series 2444, The World Bank.
  9. Cai, Hongbin & Treisman, Daniel, 2004. "State corroding federalism," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 819-843, March.
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Citations

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Cited by:
  1. Evgeny Yakovlev & Ekaterina Zhuravskaya, 2005. "State Capture: From Yeltsin to Putin," Working Papers w0052, Center for Economic and Financial Research (CEFIR).
  2. Pavel Kadochnikov, 2006. "An Analysis of Import Substitution in Russia after the 1998 Crisis," Research Paper Series, Gaidar Institute for Economic Policy, issue 95, pages 148.
  3. Oksana Harbuzyuk & Stefan Lutz, 2008. "Analyzing trade opening in Ukraine: effects of a customs union with the EU," Economic Change and Restructuring, Springer, vol. 41(3), pages 221-238, September.
  4. Yaroslav Lissovolik & Bogdan Lissovolik, 2004. "Russia and the WTO," IMF Working Papers 04/159, International Monetary Fund.

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