BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 19/2004:
Trade specialisation patterns: The case of Russia
Bernadina Algieri ()
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 indices. The Aquino index is applied to measure the degree
of inter-industry specialisation by sector, while the Grubel-Lloyd index is
used to establish the level of IIT between industries. The empirical
results support recent trade theory, which predicts an increasing level of
intra-industry trade with liberalisation processes. They also suggest how
inter- and intra-industry trade coexist. The final econometric estimation
of the factor content of Russia’s exports (specialisation in
resource-intensive products) supports the index analysis.
45 pages, December 31, 2004
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