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Endogenous Tariff Protection and the Level of Trade Distortions in Russia

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Author Info
Afontsev Serguey ()
Abstract

This paper addresses the political economy background of import protection policy in Russia under the system of policy-making institutions developed during the period 1992–1997. Models explaining import penetration levels and import tariff rates are constructed and estimated independently as well as in a simultaneous setting. Import penetration measures, instrumented by factor intensity variables and an economies-of-scale variable, appear to exercise a highly significant posi-tive impact on the level of tariff rates. At the same time, no statistically significant negative influence of tariff rates on the level of import penetration was found, meaning that producers' losses due to the trade liberalization can be less than usually expected.

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Publisher Info
Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 01-07e.

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Length: 52 pages
Date of creation: 18 Apr 2002
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Handle: RePEc:eer:wpalle:01-07e

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Related research
Keywords: Russia; political economy; endogenous protection theory; tariff regulation; policy formation in transition economy; trade policy in Russia;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Linkages

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  6. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-60, February. [Downloadable!] (restricted)
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  16. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December. [Downloadable!] (restricted)
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