Trade among the Post-Soviet states: evolution and policy issues
This paper analyses the causes of the precipitous fall in trade among the twelve CIS countries since 1990; points out the implications for industrial restructuring; and discusses the policy options for regional reintegration. The main finding is that the decline in intra-C!S trade was initiated by the institutional void left by the collapse of the central planning system. However, the high volume of trade among the former Soviet republics reflected largely their isolation from the rest of the world economy, as well as other policy-induced distortions. Therefore, if market-oriented economic reforms in the CIS countries are successful, intra-CIS trade flows will remain substantially smaller than during the Soviet period.
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