Trade Specialisation Dynamics in Russia

Bernardina Algieri

Comparative Economic Studies, 2007, vol. 49, issue 2, 232-258

Abstract: This paper considers trade specialisation in Russia, examining changes in trade patterns at the sectoral level over the transition period. Trade based on inter-industry specialisation and intra-industry trade (IIT) are empirically distinguished using the Aquino and Grubel–Lloyd (GL) indices. The Aquino index is applied to measure the degree of inter-industry specialisation by sector, while the GL index is used to establish the level of IIT between industries. The empirical results support recent trade theory, which predicts an increasing level of IIT with liberalisation processes. They also suggest how inter- and intra-industry trade coexist. The econometric estimation of the factor content of Russia's exports (specialisation in resource-intensive products) supports the index analysis. Comparative Economic Studies (2007) 49, 232–258. doi:10.1057/palgrave.ces.8100199

Date: 2007
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