Sectoral Distortions and Service Protection in Russia: A Comparison with Benchmark Emerging Markets and EU Accession Candidates

Rolf Langhammer

Eastern European Economics, 2008, vol. 46, issue 6, 70-83

Abstract: Recent research on gains for Russia from World Trade Organization membership concludes that service trade liberalization through allowing foreign suppliers to invest in Russian service industries promises large gains. Comparing Organization for Economic Cooperation and Development estimates on effective rates of protection with and without intermediate services for several countries, the paper shows that almost all Russian service industries effectively get taxed due to high tax equivalents for services. Options for European Neighborhood Policy must be based on reciprocity: To access the Russian market, the European Union must open its service markets to Russian companies.

Date: 2008
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