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| Author: | Djankov, S. Freund, C. |
| Title: | New Borders: Evidence from the Former Soviet Union |
| Journal: | Weltwirtschaftliches Archiv
2002 : VOL. 138:3, p. 493-508 |
| Index terms: | RUSSIA TRADE ECONOMIC ANALYSIS ECONOMICS |
| Language: | eng |
| Abstract: | This paper offers three contributions. First, the authors document the adjustment in trade flows in response to the collapse of the Soviet Union and quantify the border effect. The authors examine bilateral trade flows between nine Russian regions and fourteen republics of the former Soviet Union (FSU) before and after it dissolved. Estimating a gravity equation, the authors find that regions did not trade more with each other than with republics in the prereform period. Second, the authors examine how the determinants of trade have changed since the collapse of central planning. The authors find that the elasticities of trade to income and distance in the prereform period are markedly smaller than those typically found in empirical work using the gravity equation. |
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