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Disintegration

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  • Djankov, Simeon
  • Freund, Caroline

Abstract

We study the effects of trade barriers and the persistence of past linkages on trade flows in the former Soviet Union (FSU). Estimating a gravity equation on 1987-1996 trade among and between nine Russian regions and fourteen FSU republics, we find that Russian regions traded 60 percent more with each other than with republics in the reform period (1994-1995). In contrast, they did not trade significantly more with each other than with republics in the reform period (1994-96). In contrast, they did not trade significantly more with each other than with republics in the pre-reform period (1987-90). Our results suggest that the bias towards domestic trade in the reform period is primarily a result of tariffs. We also find that past linkages, such as infrastructure, production and consumption chains, and business networks, have limited the reorientation of trade.

Suggested Citation

  • Djankov, Simeon & Freund, Caroline, 2000. "Disintegration," CEPR Discussion Papers 2545, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:2545
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tiiu Paas & Egle Tafenau, 2004. "The Baltic Sea Region’s Role in Trade Integration," University of Tartu - Faculty of Economics and Business Administration,in: Modelling the Economies of the Baltic Sea Region, volume 17, chapter 3, pages 92-115 Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Jan Fidrmuc & Jarko Fidrmuc, 2003. "Disintegration and Trade," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 811-829, November.
    3. Pomfret, Richard, 2005. "Trade policies in Central Asia after EU enlargement and before Russian WTO accession: Regionalism and integration into the world economy," Economic Systems, Elsevier, vol. 29(1), pages 32-58, March.
    4. Grosjean, Pauline & Senik, Claudia, 2007. "Should Market Liberalization precede Democracy ? Causal Relations between Political Preferences and Development," CEPREMAP Working Papers (Docweb) 0704, CEPREMAP.
    5. Richard Pomfret, 2006. "Coordinating Aid for Regional Cooperation Projects: The Experience of Central Asia," The Institute for International Integration Studies Discussion Paper Series iiisdp163, IIIS.
    6. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(3), pages 501-521, September.
    7. Yener Kandogan, 2006. "Falling Walls and Lifting Curtains: Analysis of Border Effects in Transition Countries," William Davidson Institute Working Papers Series 821, William Davidson Institute at the University of Michigan.

    More about this item

    Keywords

    Disintegration; Former Soviet Union;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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