Russia's common market takes shape : price convergence and market integration among Russian regions

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Title: Russia's common market takes shape : price convergence and market integration among Russian regions
Author: Gluschenko, Konstantin
Organization: Bank of Finland
Department / Unit: Institute for Economies in Transition (BOFIT)
Series: BOFIT Discussion Papers
Series number: 7/2006
Year of publication: 2006
Publication date: 15.8.2006
Published in: Published in Regional Science and Urban Economics, 41 (2), pp. 160-172 (2011) as "Price convergence and market integration in Russia"
Pages: 31 s.
Keywords: Venäjä; markkinat; alueet; integraatio; hinnat; lähentyminen; Bofit-kokoelma; hyödykemarkkinat;
JEL: C32; P22; R10; R15
Abstract: 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.
Rights: https://helda.helsinki.fi/bof/copyright


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