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Integration: An Empirical Assessment of Russia

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  • Daniel Berkowitz
  • David N. DeJong

Abstract

In the process of implementing market reforms, many post-socialist countries have struggled to preserve economic and political integration. Using a statistical model of commodity trade, we quantify the evolution of economic integration observed among regions within Russia during 1995-1999, and then explore potential determinants of the patterns of integration we observe. Our measure of integration exhibits rich regional variation that, when aggregated to the national level, fluctuates substantially over time. In seeking to account for this behavior, we draw in part on theoretical models that emphasize the potential role of openness to international trade, regional disparities in income, and inflation volatility in threatening economic and political integration. Controlling for a host of additional regional- and national-level variables, we find a strong negative correspondence between openness to international trade and internal economic integration within Russia. We also find negative links but weaker links between integration and regional-income disparities and inflation volatility.

Suggested Citation

  • Daniel Berkowitz & David N. DeJong, 2002. "Integration: An Empirical Assessment of Russia," William Davidson Institute Working Papers Series 488, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2002-488
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    References listed on IDEAS

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    Cited by:

    1. Stanislav Kolenikov & Anthony Shorrocks, 2005. "A Decomposition Analysis of Regional Poverty in Russia," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 25-46, February.
    2. Dezhong Duan & Yang Zhang & Ying Chen & Debin Du, 2019. "Regional Integration in the Inter-City Technology Transfer System of the Yangtze River Delta, China," Sustainability, MDPI, vol. 11(10), pages 1-19, May.

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    More about this item

    Keywords

    openness to international trade; regional income disparities; inflation volatility; economic; political integration;
    All these keywords.

    JEL classification:

    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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