Evaluating Russia’s trade patterns |
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Authors: | Yugo Konno |
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Institution: | Research Department–Europe and the Americas, Mizuho Research Institute Ltd., Tokyo, Japan |
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Abstract: | This article offers empirical evidence on the major trends in the nature of Russia’s trade and on the determinants of the different types of trade: horizontal intra-industry trade (HIIT), vertical intra-industry trade (VIIT) and inter-industry trade (INT). The estimation results of gravity-type log-linear models suggest that the combined economic size of Russia and the trading partner has a positive effect, while the distance between the two countries has a negative effect for all types of trade. They also suggest that FDI has a significant effect on all types of trade; however, the effect varies according to whether the partner country is a member of the CIS/CU or not, and whether the FDI is outward or inward. |
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Keywords: | Horizontal and vertical intra-industry trade foreign direct investment gravity model Russia |
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