Market Integration in Russia During the Transformation Years
A cross-sectional relationship between price dispersion among Russian regions and per capita income dispersion is used to measure the degree of integration between regional commodity markets. The sequence of cross-sectional estimations for each month of the period spanning 1992 through 2000 provides the temporal pattern of market integration in Russia, yielding an integration trajectory. This pattern suggests that the regional fragmentation of the national market had been increasing during the early years of transition, and then (since about the end of 1994) integration was tending – in general – to improve. However, substantial fluctuations occur in the movement to more integration. Difficult-to-access regions markedly contribute to the overall disconnectedness of regional markets; controlling for these regions, the pattern becomes more encouraging. Surprisingly, the European part of Russia turns out to be less integrated than its Asian part. A number of culprits behind market fragmentation are found, organized crime among them.
|Date of creation:||Jul 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: ++43 - (0)1 - 599 91 - 0
Fax: ++43 - (0)1 - 599 91 - 555
Web page: http://www.ihs.ac.at
More information through EDIRC
|Order Information:|| Postal: Institute for Advanced Studies - Library, Stumpergasse 56, A-1060 Vienna, Austria|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vincent Koen & Steven Phillips, 1992. "Price Liberalization in Russia: The Early Record," IMF Working Papers 92/92, International Monetary Fund.
- Parsley, David C & Wei, Shang-Jin, 1996.
"Convergence to the Law of One Price without Trade Barriers or Currency Fluctuations,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(4), pages 1211-36, November.
- David C. Parsley & Shang-Jin Wei, 1996. "Convergence to the Law of One Price Without Trade Barriers or Currency Fluctuations," NBER Working Papers 5654, National Bureau of Economic Research, Inc.
- Glushchenko Konstantin, 2001.
"Inter-regional Variability of Inflation Rates,"
EERC Working Paper Series
99-17e, EERC Research Network, Russia and CIS.
- Konstantin Gluschenko, 2003.
"Market integration in Russia during the transformation years,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 11(3), pages 411-434, 09.
- Gluschenko, Konstantin, 2002. "Market Integration in Russia During the Transformation Years," Economics Series 116, Institute for Advanced Studies.
- Obstfeld, Maurice & Taylor, Alan M., 1997.
"Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited,"
Journal of the Japanese and International Economies,
Elsevier, vol. 11(4), pages 441-479, December.
- Maurice Obstfeld and Alan M. Taylor., 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," Center for International and Development Economics Research (CIDER) Working Papers C97-088, University of California at Berkeley.
- Maurice Obstfeld & Alan M. Taylor, 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," NBER Working Papers 6053, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice & Taylor, Alan M., 1997. "Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited," CEPR Discussion Papers 1672, C.E.P.R. Discussion Papers.
- Paula De Masi & Vincent Koen, 1997. "Prices in the Transition: Ten Stylized Facts," IMF Working Papers 97/158, International Monetary Fund.
- Paula De Masi & Vincent Koen, 1996.
"Relative Price Convergence in Russia,"
IMF Staff Papers,
Palgrave Macmillan, vol. 43(1), pages 97-122, March.
- Barry K. Goodwin & Thomas J. Grennes & Christine McCurdy, 1999. "Spatial price dynamics and integration in russian food markets," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(2), pages 157-193.
- Konstantin Gluschenko, 2004.
"Analysing changes in market integration through a cross-sectional test for the law of one price,"
International Journal of Finance & Economics,
John Wiley & Sons, Ltd., vol. 9(2), pages 135-149.
- Daniel Berkowitz & David N. DeJong, 2001.
"The evolution of market integration in Russia,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 9(1), pages 87-104, March.
When requesting a correction, please mention this item's handle: RePEc:ihs:ihsesp:116. 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: (Doris Szoncsitz)
If references are entirely missing, you can add them using this form.