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Disintegration

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  • Djankov, Simeon
  • Freund, Caroline

Abstract

We study the effects of trade barriers and the persistence of past linkages on trade flows in the former Soviet Union (FSU). Estimating a gravity equation on 1987-1996 trade among and between nine Russian regions and fourteen FSU republics, we find that Russian regions traded 60 percent more with each other than with republics in the reform period (1994-1995). In contrast, they did not trade significantly more with each other than with republics in the reform period (1994-96). In contrast, they did not trade significantly more with each other than with republics in the pre-reform period (1987-90). Our results suggest that the bias towards domestic trade in the reform period is primarily a result of tariffs. We also find that past linkages, such as infrastructure, production and consumption chains, and business networks, have limited the reorientation of trade.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2545.

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Date of creation: Aug 2000
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Handle: RePEc:cpr:ceprdp:2545

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Keywords: Disintegration; Former Soviet Union;

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  4. Blanchard, Olivier & Kremer, Michael, 1997. "Disorganization," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1091-1126, November.
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Citations

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Cited by:
  1. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(3), pages 501-521, September.
  2. Jarko Fidrmuc & Jan Fidrmuc, 2000. "Disintegration and Trade," William Davidson Institute Working Papers Series 353, William Davidson Institute at the University of Michigan.
  3. Richard Pomfret, 2004. "Trade Policies in Central Asia after EU Enlargement and before Russian WTO Accession: Regionalism and Integration into the World Economy," School of Economics Working Papers 2004-13, University of Adelaide, School of Economics.
  4. Tiiu Paas & Egle Tafenau, 2004. "The Baltic Sea Region’s Role in Trade Integration," University of Tartu - Faculty of Economics and Business Administration, in: Modelling the Economies of the Baltic Sea Region, volume 17, chapter 3, pages 92-115 Faculty of Economics and Business Administration, University of Tartu (Estonia).
  5. Grosjean, Pauline & Senik, Claudia, 2007. "Should Market Liberalization Precede Democracy? Causal Relations between Political Preferences and Development," IZA Discussion Papers 2889, Institute for the Study of Labor (IZA).
  6. Richard Pomfret, 2006. "Coordinating Aid for Regional Cooperation Projects: The Experience of Central Asia," The Institute for International Integration Studies Discussion Paper Series iiisdp163, IIIS.
  7. Yener Kandogan, 2006. "Falling Walls and Lifting Curtains: Analysis of Border Effects in Transition Countries," William Davidson Institute Working Papers Series 821, William Davidson Institute at the University of Michigan.
  8. Claus-Friedrich Laaser & Klaus Schrader, 2002. "European Integration and Changing Trade Patterns: The Case of the Baltic States," Kiel Working Papers 1088, Kiel Institute for the World Economy.

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