Regional impacts of Russia's accession to the World Trade Organization

Rutherford, Thomas,Tarr, David
Authors registered in the RePEc Author Service: Thomas F. Rutherford () and David Gerald Tarr

No 4015, Policy Research Working Paper Series from The World Bank

Abstract: In this paper we develop a computable general equilibrium model of the regions of Russia to assess the impact of accession to the World Trade Organization WTO) on the regions of Russia. We estimate that the average gain in welfare as a percentage of consumption for the whole country is 7.8 percent or 4.3 percent of consumption); we estimate that three regions will gain considerably more: Northwest 11.2 percent), St. Petersburg 10.6 percent) and Far East 9.7 percent). We estimate that the Urals will gain only 6.2 percent of consumption, considerably less than the national average. The principal explanation in our central analysis for the differences across regions is the ability of the different regions to benefit from a reduction in barriers against foreign direct investment. The three regions with the largest welfare gains are clearly the regions with the estimated largest shares of multinational investment. But the Urals has attracted relatively little FDI in the service sectors. An additional reason for differences across regions is quantified in our sensitivity analysis: regions may gain more from WTO accession if they can succeed in creating a good investment climate.

Keywords: International Trade and Trade Rules; Oil & Gas; Telecommunications Infrastructure; Transport Services; World Trade Organization (search for similar items in EconPapers)
Date: 2006-09-01
New Economics Papers: this item is included in nep-cis, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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