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Sectoral Distortions and Service Protection in Russia: A Comparison with Benchmark Emerging Markets and EU Accession Candidates

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  • Rolf J. Langhammer

Abstract

Recent research on gains for Russia from World Trade Organization membership concludes that service trade liberalization through allowing foreign suppliers to invest in Russian service industries promises large gains. Comparing Organization for Economic Cooperation and Development estimates on effective rates of protection with and without intermediate services for several countries, the paper shows that almost all Russian service industries effectively get taxed due to high tax equivalents for services. Options for European Neighborhood Policy must be based on reciprocity: To access the Russian market, the European Union must open its service markets to Russian companies.

Suggested Citation

  • Rolf J. Langhammer, 2008. "Sectoral Distortions and Service Protection in Russia: A Comparison with Benchmark Emerging Markets and EU Accession Candidates," Eastern European Economics, Taylor & Francis Journals, vol. 46(6), pages 70-83, November.
  • Handle: RePEc:mes:eaeuec:v:46:y:2008:i:6:p:70-83
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    References listed on IDEAS

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    1. Philippa Dee, 2007. "East Asian Economic Integration and its Impact on Future Growth," The World Economy, Wiley Blackwell, vol. 30(3), pages 405-423, March.
    2. repec:wsi:wschap:9789813108448_0019 is not listed on IDEAS
    3. Jesper Jensen & Thomas Rutherford & David Tarr, 2014. "The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 6, pages 125-149 World Scientific Publishing Co. Pte. Ltd..
    4. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
    5. Jesper Jensen & Thomas Rutherford & Thomas Rutherford & Thomas Rutherford, 2006. "The Importance of Telecommunications Reform in Russia's Accession to the WTO," Eastern European Economics, Taylor & Francis Journals, pages 25-58.
    6. James Markusen & Thomas F. Rutherford & David Tarr, 2017. "Trade and direct investment in producer services and the domestic market for expertise," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 19, pages 439-458 World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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