Browsing by Subject "R15"

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  • Gluschenko, Konstantin (2006)
    BOFIT Discussion Papers 7/2006
    Published in Regional Science and Urban Economics, 41 (2), pp. 160-172 (2011) as "Price convergence and market integration in Russia"
    This paper analyzes the spatial structure of goods market integration in Russia, characterizing regions into three states: (a) integrated, (b) not integrated but trending toward integration, and (c) not integrated and not trending toward integration.Using time series of the cost of a staples basket across 75 regions of Russia for 1994-2000, I exploit a nonlinear cointegration relationship with an asymptotically subsiding trend to capture movement toward integration.The analysis suggests that 36% of Russian regions were integrated with the national market over 1994-2000, 44% were in the process of integrating with the national market, and 20% of regions were not integrated and not trending toward integration. JEL classification: C32, P22, R10, R15 Keywords: market integration, law of one price, price dispersion, convergence, Russian regions.