IDEAS home Printed from
   My bibliography  Save this article

Real Effective Exchange Rate of Rouble and Competitiveness of Russian Agrarian Producers


  • Mansoor Maitah

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, Prague 165 21, Czech Republic)

  • Elena Kuzmenko

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, Prague 165 21, Czech Republic)

  • Lubos Smutka

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, Prague 165 21, Czech Republic)


A number of development projects were launched in Russia to support agro-producers, emphasizing increasing potential and perspective significance of Agrarian sector in the Russian economy. In light of this, it becomes interesting to investigate the position of agro-producers both in comparison to producers from other domestic sectors and relatively to its main foreign competitors. An analysis of the recent dynamics (from 2000 to 2014) of the real effective exchange rate of Russian rouble serves in the present study as an indicator of price competitiveness, which determines relative position of domestic producers in external markets. The actual competitive state of Russian agro-producers is analyzed by the means of revealed comparative advantage indices proposed by Balassa, Vollrath and Lafay. The calculations have shown that the entire analyzed period can be generally characterized as the period of significant real appreciation of the Russian rouble and the reason behind this is the difference in inflation rates in Russia and its main foreign trade partners. This predetermined the relatively low price competitiveness of agro-producers, which was mostly confirmed by calculated values of Balassa Revealed Comparative Advantage (RCA) index, Vollrath Revealed Competitiveness index (VRC) and Lafay Trade Specialization index (LFI). The short-term real depreciations of the rouble did not have any expected substantially positive impacts on their competitive position.

Suggested Citation

  • Mansoor Maitah & Elena Kuzmenko & Lubos Smutka, 2016. "Real Effective Exchange Rate of Rouble and Competitiveness of Russian Agrarian Producers," Economies, MDPI, Open Access Journal, vol. 4(3), pages 1-19, June.
  • Handle: RePEc:gam:jecomi:v:4:y:2016:i:3:p:12-:d:72831

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Viktors Ajevskis & Ramune Rimgailaite & Uldis Rutkaste & Olegs Tkacevs, 2014. "The equilibrium real exchange rate: pros and cons of different approaches with application to Latvia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 14(1-2), pages 101-123, December.
    2. Ballance, Robert H & Forstner, Helmut & Murray, Tracy, 1987. "Consistency Tests of Alternative Measures of Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 157-161, February.
    3. Lall, Sanjaya, 2001. "Competitiveness Indices and Developing Countries: An Economic Evaluation of the Global Competitiveness Report," World Development, Elsevier, vol. 29(9), pages 1501-1525, September.
    4. Siegfried Bender & Kui-Wai Li, 2002. "The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports," Working Papers 843, Economic Growth Center, Yale University.
    5. A. Blank & E. Gurvich & A. Ulyukaev., 2006. "Exchange Rate and Competitiveness of Russia’s Industries," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 6.
    6. Boltho, Andrea, 1996. "The Assessment: International Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 1-16, Autumn.
    7. Brodsky, Boris, 2006. "The Influence of the Ruble Real Exchange Rate on the Russian Economy," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 4(4), pages 90-104.
    8. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
    9. Kuboniwa, Masaaki, 2009. "Growth and Diversification of the Russian Economy in Light of Input-Output Tables," RRC Working Paper Series 18, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    Full references (including those not matched with items on IDEAS)

    More about this item


    real effective exchange rate; agrarian producers; economic sectors; competitiveness; Balassa index; Vollrath index; Lafay index; Russia;

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • F - International Economics
    • I - Health, Education, and Welfare
    • J - Labor and Demographic Economics
    • O - Economic Development, Innovation, Technological Change, and Growth
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:4:y:2016:i:3:p:12-:d:72831. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.