Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71239
Authors: 
Gluschenko, Konstantin
Year of Publication: 
2002
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 116
Abstract: 
A cross-sectional relationship between price dispersion among Russian regions and per capita income dispersion is used to measure the degree of integration between regional commodity markets. The sequence of cross-sectional estimations for each month of the period spanning 1992 through 2000 provides the temporal pattern of market integration in Russia, yielding an integration trajectory. This pattern suggests that the regional fragmentation of the national market had been increasing during the early years of transition, and then (since about the end of 1994) integration was tending - in general - to improve. However, substantial fluctuations occur in the movement to more integration. Difficult-toaccess regions markedly contribute to the overall disconnectedness of regional markets; controlling for these regions, the pattern becomes more encouraging. Surprisingly, the European part of Russia turns out to be less integrated than its Asian part. A number of culprits behind market fragmentation are found, organized crime among them.
Subjects: 
market integration
law of one price
price dispersion
Russian regions
JEL: 
P22
R10
R15
Document Type: 
Working Paper

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