Trade impact of non-tariff trade costs. An Assessment of the Customs Union of Russia, Belarus and Kazakhstan

Mkrtchyan Arevik ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: he recently established Eurasian Customs Union of Russia, Belarus and Kaza-khstan has generated considerable research interest. Using a rich panel data, thispaper analyses the impact of the common external tariff and changes in non-tariff trade barriers on bilateral trade patterns. Tariff increases have expected negativeimpact on the trade ows. The Customs Union abolished the customs controlsbetween the members in two stages. This allows to estimate the effect of borderelimination which is particularly strong for intra-CU trade. As tariff changes facedby non-members are already accounted for, this growth can be attributed to reducedtrade costs, that is, not driven by trade diversion due to tariff changes. The paperexplores the unexpected and sudden creation of the CU and speci cities in the tim-ing of removing the internal customs controls. This allows to estimate the border effects directly instead of being inferred from the difference between intra-countryand inter-country trade as it is typically done in the literature.

JEL-codes: F14 F15 F55 (search for similar items in EconPapers)
Date: 2013-11-01
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