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Anatomy of Russia's Market Segmentation

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  • Konstantin Gluschenko

Abstract

Based on a relationship between price difference and demand difference among locations, the role of various market frictions in causing segmentation of the Russian goods market is analyzed. The spatial sample covers most of Russian regions (70 of all the 89); the data are yearly, spanning 1992 through 2000. Spatial disconnectedness of regions is found to be responsible for about 70 percent of average price differential, while the rest is caused by "artificial? impediments to market integration such as shipping conditions, regional protectionism, and organized crime.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp211.pdf
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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 21108.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:21108

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Keywords: Market integration; law of one price; market frictions; Russian regions.;

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Cited by:
  1. Gluschenko, Konstantin, 2011. "Price convergence and market integration in Russia," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 160-172, March.
  2. Alisher Akhmedjonov & Irina N. Il’ina & Carol S. Leonard & Zafar Nazarov & Evgenij E. Plisetskij & Elena S. Vakulenko, 2013. "Russia’s regions: governance and Well-being, 2000-2008," HSE Working papers WP BRP 42/EC/2013, National Research University Higher School of Economics.

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