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Integration: An Empirical Assessment of Russia


  • Daniel Berkowitz


  • David N. DeJong



In the process of implementing market reforms, many post-socialist countries have struggled to preserve economic and political integration. Using a statistical model of commodity trade, we quantify the evolution of economic integration observed among regions within Russia during 1995-1999, and then explore potential determinants of the patterns of integration we observe. Our measure of integration exhibits rich regional variation that, when aggregated to the national level, fluctuates substantially over time. In seeking to account for this behavior, we draw in part on theoretical models that emphasize the potential role of openness to international trade, regional disparities in income, and inflation volatility in threatening economic and political integration. Controlling for a host of additional regional- and national-level variables, we find a strong negative correspondence between openness to international trade and internal economic integration within Russia. We also find negative links but weaker links between integration and regional-income disparities and inflation volatility.

Suggested Citation

  • Daniel Berkowitz & David N. DeJong, 2002. "Integration: An Empirical Assessment of Russia," William Davidson Institute Working Papers Series 488, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2002-488

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    References listed on IDEAS

    1. Berkowitz, Daniel & DeJong, David N., 1999. "Russia's internal border," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 633-649, September.
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    Cited by:

    1. Kolenikov, Stanislav & Shorrocks, Anthony, 2003. "A Decomposition Analysis of Regional Poverty in Russia," WIDER Working Paper Series 074, World Institute for Development Economic Research (UNU-WIDER).

    More about this item


    openness to international trade; regional income disparities; inflation volatility; economic; political integration;

    JEL classification:

    • P22 - Economic Systems - - Socialist Systems and Transition Economies - - - Prices
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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