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Regional integration and economic convergence in the post-Soviet space: Experience of the decade of growth

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  • Libman, Alexander
  • Vinokurov, Evgeny

Abstract

This paper examines the dynamics of regional integration and economic convergence in the post-Soviet world during the period 1999-2008. This is the period, when FSU countries experienced rapid economic growth, following the “Big Bang” of the disintegration of the Former Soviet Union (FSU) and the deep economic recession of the 1990s. It starts by discussing a set of indicators reflecting various aspects of interaction of post-Soviet countries (trade, labor migration, integration in key functional markets and economic convergence in different areas) and examines the dynamics of these indicators for the whole region and sub-groups of countries, as well as potential causes and conclusions to be drawn. In addition, it looks at the clusters of regional integration and economic convergence using the hierarchical cluster analysis and attempts to identify the reasons for their formation. We find that during the period studied the trade integration experienced a negative trend, but at the same time we observe an unprecedented expansion of labor migration – thus suggesting that integration of factor flows can outperform integration of markets for goods and services. Finally, clustering processes of the post-Soviet states for the economic convergence and for the economic integration seems to be unaffected by each other.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21594.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:21594

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Keywords: regional integration; economic convergence; post-Soviet space; integration clubs;

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  1. Jensen, Henrik, 1994. "Sustaining policy cooperation between economies of different size," Journal of International Economics, Elsevier, vol. 36(3-4), pages 289-307, May.
  2. Alexander Libman, 2007. "Moldova: Structural Change, Trade Specialization and International Integration," wiiw Research Reports 344, The Vienna Institute for International Economic Studies, wiiw.
  3. Djankov, Simeon & Freund, Caroline, 2002. "Trade Flows in the Former Soviet Union, 1987 to 1996," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 76-90, March.
  4. Vinokurov, Evgeny, 2009. "The CIS Common Electric Power Market," MPRA Paper 20910, University Library of Munich, Germany.
  5. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.
  6. Teichova,Alice & Matis,Herbert & Pátek,Jaroslav (ed.), 2000. "Economic Change and the National Question in Twentieth-Century Europe," Cambridge Books, Cambridge University Press, number 9780521630375.
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Cited by:
  1. Vinokurov, Evgeny, 2012. "EDB Eurasian Integration Yearbook 2012," MPRA Paper 49179, University Library of Munich, Germany.
  2. Vinokurov, Evgeny & Libman, Alexander, 2012. "Eurasia and Eurasian Integration: Beyond the Post-Soviet Borders," MPRA Paper 49182, University Library of Munich, Germany.

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