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Integration of the national food market

Listed author(s):
  • K.P. Glushchenko
  • A.Yu. Koneva

Market integration is analyzed using the time series of the cost of 25 item basket of food staples for the 1994-2000 period across 11 economic regions of Russia. It is shown that 27% of regions are integrated in the national market and that there are 42% of integrated pairs of regions. The effects of factors impeding integration are assessed with a threshold model. Transaction costs of arbitration are found to vary from 15 to 25% of the cost of the basket. These results are compared with those obtained by use of the food component of consumer prices; a conclusion is made that this component does not make a good proxy for prices in the national food market.

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Article provided by Institute of Economics and Industrial Engineering of Siberian Branch of RAS in its journal Journal "Region: Economics and Sociology".

Volume (Year): 2 (2004)
Issue (Month): ()

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Handle: RePEc:nos:regioe:2004-2_4
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