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The terms-of-trade effects from the elimination of state trading in Soviet-Hungarian trade

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  • Oblath, Gabor
  • Tarr, David

Abstract

Given the demise of the CMEA as of January 1, 1991, it is estimated that the terms of trade will move adversely against Hungary by about 30% and impose an income loss on Hungary of about $1.7 billion. The estimates are based on an extensive series of interviews with firms involved in the trade. Compared with traditional methods, this is at least as reliable a method for adjusting for product quality. We assess the estimates and the methodology of others who have provided estimates and evaluate the consequences of a possibly unredeemable surplus in transferable rubles on the terms-of-trade estimates…
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Suggested Citation

  • Oblath, Gabor & Tarr, David, 1992. "The terms-of-trade effects from the elimination of state trading in Soviet-Hungarian trade," Journal of Comparative Economics, Elsevier, vol. 16(1), pages 75-93, March.
  • Handle: RePEc:eee:jcecon:v:16:y:1992:i:1:p:75-93
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    References listed on IDEAS

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    1. Brada, Josef C., 1985. "Soviet subsidization of Eastern Europe: The primacy of economics over politics?," Journal of Comparative Economics, Elsevier, vol. 9(1), pages 80-92, March.
    2. Brada, Josef C., 1988. "Interpreting the Soviet subsididzation of Eastern Europe," International Organization, Cambridge University Press, vol. 42(04), pages 639-658, September.
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    Cited by:

    1. Rodrik, Dani, 1992. "Making Sense of the Soviet Trade Shock in Eastern Europe: A Framework and Some Estimates," CEPR Discussion Papers 705, C.E.P.R. Discussion Papers.
    2. Morris Morkre & David Tarr, 2014. "Reforming Hungarian Agricultural Trade Policy: A Quantitative Evaluation," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 3, pages 49-74 World Scientific Publishing Co. Pte. Ltd..
    3. Dani Rodrik, 1994. "Foreign Trade in Eastern Europe's Transition: Early Results," NBER Chapters,in: The Transition in Eastern Europe, Volume 2: Restructuring, pages 319-356 National Bureau of Economic Research, Inc.
    4. Erzan, Refik & Holmes, Christopher & Safadi, Raed, 1992. "How changes in the former CMEA area may affect international trade in manufactures," Policy Research Working Paper Series 973, The World Bank.
    5. Jean-Charles Asselain & François Bourguignon, 1994. "Convertibilité précoce et protection par le change : un premier bilan de la réinsertion internationale des pays de l'Est," Revue Économique, Programme National Persée, vol. 45(3), pages 833-844.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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