Common Russian Market: Myth rather than Reality

This file is part of IDEAS, which uses RePEc data

Common Russian Market: Myth rather than Reality

Author Info

Glushchenko Konstantin ()

Additional information is available for the following registered author(s):

Konstantin Gluschenko

Abstract

This paper presents a theoretical argument that the relationship between price differences and per capita demand differences (approximated by per capita income differences) across locations can be used as a cross-sectional test of the law of one price. Since the relationship should be statistically insignificant or very weak in an integrated economy, its strength can measure the extent of market integration. Using this approach, the temporal pattern of Russia's internal market integration is characterized. The data used span 1992 – 1999, and cover most regions of the country; a number of consumer goods and aggregates are included in the analysis. The price-income relationship is found to be strong over the whole time span considered, thus indicating that the Russian market is not near to being integrated even in the present day. Nevertheless, integration tends to improve over time, though there are deviations from this tendency in 1997 and 1999. A number of culprits behind market fragmentation are identified, organized crime among them.

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 EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 01-11e.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 69 pages
Date of creation: 19 Aug 2002
Date of revision:
Handle: RePEc:eer:wpalle:01-11e

Contact details of provider:
Postal: EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia
Phone: +7(095)332-4415
Fax: +1(202)478-1968
Web page: http://www.eerc.ru

Order Information:
Postal: EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia
Email:
Web: http://www.eerc.ru/publications/subscriptions/default.htm

For technical questions regarding this item, or to correct its listing, contact: (Dmitry Basovsky) The email address of this maintainer does not seem to be valid anymore. Please ask Dmitry Basovsky to update the entry or send us the correct address..

Other versions of this item:

Find related papers by JEL classification:
P22 - Economic Systems - - Socialist Systems and Transition Economies - - - Prices
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

This paper has been announced in the following NEP Reports:

NEP-IFN-2002-10-18 (International Finance)

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.:

Parsley, David C & Wei, Shang-Jin, 1996. "Convergence to the Law of One Price without Trade Barriers or Currency Fluctuations," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1211-36, November. [Downloadable!] (restricted)
Other versions:
- David C. Parsley & Shang-Jin Wei, 1996. "Convergence to the Law of One Price Without Trade Barriers or Currency Fluctuations," NBER Working Papers 5654, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Engel, Charles & Rogers, John H, 1996. "How Wide Is the Border?," American Economic Review, American Economic Association, vol. 86(5), pages 1112-25, December. [Downloadable!] (restricted)
Other versions:
- Charles Engel & John H. Rogers, 1994. "How Wide is the Border?," NBER Working Papers 4829, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," International Finance Discussion Papers 498, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
- Engel, C. & Rogers, J.H., 1995. "How Wide is the Border?," Papers 4-95-16, Pennsylvania State - Department of Economics.
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," Research Working Paper 95-09, Federal Reserve Bank of Kansas City. [Downloadable!]
Glushchenko Konstantin, 2001. "Inter-regional Variability of Inflation Rates," EERC Working Paper Series 99-17e, EERC Research Network, Russia and CIS. [Downloadable!]
Charles Engel & John H. Rogers, 1996. "Regional patterns in the law of one price: the roles of geography vs. currencies," International Finance Discussion Papers 533, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
Other versions:
- Engel, C. & Rogers, J.H., 1996. "Regional Patterns in the Law of One Price: The Roles of Geography vs. Currencies," Working Papers 96-01, University of Washington, Department of Economics.
- Charles Engel & John H. Rogers, 1995. "Regional Patterns in the Law of One Price: The Roles of Geography vs. Currencies," NBER Working Papers 5395, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Engel, C. & Rogers, J.H., 1996. "Regional Patterns in the Law of One Price: The Roles of Geography vs. Currencies," Discussion Papers in Economics at the University of Washington 96-01, Department of Economics at the University of Washington.
Paula De Masi & Vincent Koen, 1995. "Relative Price Convergence in Russia," IMF Working Papers 95/54, International Monetary Fund.
Berkowitz, Daniel & DeJong, David N., 1999. "Russia's internal border," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 633-649, September. [Downloadable!] (restricted)
Other versions:
- Daniel Berkowitz & David DeJong, 1998. "Russia's Internal Border," William Davidson Institute Working Papers Series 189, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Obstfeld, Maurice & Taylor, Alan M., 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," Journal of the Japanese and International Economies, Elsevier, vol. 11(4), pages 441-479, December. [Downloadable!] (restricted)
Other versions:
- Maurice Obstfeld and Alan M. Taylor., 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," Center for International and Development Economics Research (CIDER) Working Papers C97-088, University of California at Berkeley.
- Maurice Obstfeld & Alan M. Taylor, 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," NBER Working Papers 6053, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Obstfeld, Maurice & Taylor, Alan M, 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," CEPR Discussion Papers 1672, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Daniel Berkowitz & David N. DeJong, 2001. "The evolution of market integration in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(1), pages 87-104, March. [Downloadable!] (restricted)
Other versions:
- Daniel Berkowitz & David N. DeJong, 2000. "The Evolution of Market Integration in Russia," William Davidson Institute Working Papers Series 334, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]

Full references

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.)

Glushchenko Konstantin, . "Integration of the Russian Market. Empirical Analysis," EERC Working Paper Series 04-06e, EERC Research Network, Russia and CIS. [Downloadable!]
Ivanova Nadezhda, 2005. "Estimation of own- and cross-price elasticities of disaggregated imported and domestic goods in Russia," EERC Working Paper Series 05-13e, EERC Research Network, Russia and CIS. [Downloadable!]
Gluschenko, Konstantin, 2002. "Market Integration in Russia During the Transformation Years," Economics Series 116, Institute for Advanced Studies. [Downloadable!]
Other versions:
- Konstantin Gluschenko, 2003. "Market integration in Russia during the transformation years," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 411-434, 09. [Downloadable!] (restricted)

Statistics

Access and download statistics

Did you know? All top Economics journals are listed on RePEc.

This page was last updated on 2009-11-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.