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The Law of one Price in the Russian Economy

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Author Info
Konstantin Gluschenko

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Abstract

Taking the law of one price as a test for market integration, the spatial set-up of Russia’s market integration over 1994-2000 is analyzed with the use of time series of the cost of a staples basket across Russian regions. The law is found to hold for about 50% to 60% of Russian regions, estimates of a threshold model suggesting rather high barriers to inter-regional trade. To reveal whether there is a movement towards market integration among non-integrated regions, dynamics of cross-sectional distribution of prices receives study. The results indicate that such a tendency does take place. An effort is made to identify forces responsible for Enter-regional price disparities.

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File URL: http://www.econ.kuleuven.be/LICOS/DP/DP2004/DP152.pdf
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Publisher Info
Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 15204.

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Length: 40 pages
Date of creation: 2004
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Handle: RePEc:lic:licosd:15204

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Related research
Keywords: market integration; price dispersion; price convergence; Russia; Russian regions;

Find related papers by JEL classification:
P22 - Economic Systems - - Socialist Systems and Transition Economies - - - Prices
P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
R19 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Other

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References listed on IDEAS
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  13. Glushchenko Konstantin, . "Integration of the Russian Market. Empirical Analysis," EERC Working Paper Series 04-06e, EERC Research Network, Russia and CIS. [Downloadable!]
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  15. Glushchenko Konstantin, 2001. "Inter-regional Variability of Inflation Rates," EERC Working Paper Series 99-17e, EERC Research Network, Russia and CIS. [Downloadable!]
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  23. Konstantin Gluschenko, 2004. "Analysing changes in market integration through a cross-sectional test for the law of one price," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 135-149. [Downloadable!]
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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.)

  1. 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!]
    Other versions:
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