Economic Effects of Free Trade between the EU and Russia

Pekka Sulamaa and Mika Widgrén
Additional contact information
Pekka Sulamaa: ETLA, the Research Institute of the Finnish Economy

No 36, Economics Working Papers from European Network of Economic Policy Research Institutes

Abstract: This study simulates the economic effects of eastern enlargement of the EU and an EU-Russian free trade area. The main emphasis of the paper is on the effect this would have on the Russian economy. The simulations were carried out with a GTAP computable general equilibrium model, using the most recent GTAP database 6.0 beta, which takes the former Europe agreements between the EU-15 and the eight new Central and Eastern European member states into account. The results confirm the earlier findings that a free trade agreement with the EU is beneficial for Russia in terms of total output but not necessarily in terms of economic welfare when measured by equivalent variation. The main reason behind this is the deterioration that would occur in Russia’s terms of trade. Improved productivity in Russia would, however, make the free trade agreement with the EU advantageous.

Keywords: EU; Russia; free trade; integration (search for similar items in EconPapers)
JEL-codes: F15 F17 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2005-05
New Economics Papers: this item is included in nep-cmp, nep-eec, nep-int and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.enepri.org/Publications/WP036.pdf (application/pdf)

Related works:
Working Paper: Economic Effects of Free Trade between the EU and Russia (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:epr:enepwp:036

Ordering information: This working paper can be ordered from
ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium
http://www.enepri.org

Access Statistics for this paper

More papers in Economics Working Papers from European Network of Economic Policy Research Institutes ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium. Contact information at EDIRC.
Bibliographic data for series maintained by CEPS ( this e-mail address is bad, please contact ).