Goods Market Integration in Russia During the Economic Upturn

26 Pages Posted: 20 Jun 2008

See all articles by Konstantin Gluschenko

Konstantin Gluschenko

Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences; Department of Economics, Novosibirsk State University

Date Written: May 2008

Abstract

This paper obtains an evolving pattern of goods market integration in Russia, considering the period of economic upturn, since the second half of 2000 through the end of 2007. In an integrated market, the price of a tradable good at any location is determined by the national market, not local demand. Based on this, the strength of dependence of local prices on local demands is used to detect and measure market segmentation. The costs of a staples basket across almost all Russian regions with a monthly frequency are used as the empirical stuff. The pattern obtained suggests that in the time span under consideration the degree of Russia's goods market integration was relatively stable, fluctuating around some level; no sufficient improvements or deteriorations were detected.

Keywords: market integration, law of one price, price dispersion, Russian regions

JEL Classification: P22, R10, R15

Suggested Citation

Gluschenko, Konstantin, Goods Market Integration in Russia During the Economic Upturn (May 2008). William Davidson Institute Working Paper No. 921, Available at SSRN: https://ssrn.com/abstract=1147860 or http://dx.doi.org/10.2139/ssrn.1147860

Konstantin Gluschenko (Contact Author)

Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences ( email )

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