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How moving to world prices affects the terms of trade in 15 countries of the former Soviet Union, Volume 1
Author:Tarr, David G.; Collection Title:Policy, Research working papers ; no. WPS 1074. Trade policy
Country:Moldova; Georgia; Latvia; Turkmenistan; Armenia; Tajikistan; Kazakhstan; Lithuania; Ukraine; Azerbaijan; Estonia; Uzbekistan; Kyrgyz Republic; Belarus; Russian Federation; Date Stored:2001/04/18
Document Date:1993/01/31Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Economic Theory & Research; Free Trade; Trade Policy; Access to MarketsLanguage:English
Major Sector:(Historic)Economic PolicyRegion:Europe and Central Asia
Report Number:WPS1074Sub Sectors:Trade
Volume No:1  

Summary: The author presents the first documented estimates of how moving to international trade prices effects the terms of trade in 15 countries of the former Soviet Union. First, he decomposes the total impact of a change in the inter-republic and extra-republic terms of trade. The broad pattern, he estimates, is that exporters of raw material and energy (notably Kazakhstan, Russia, and Turkmenistan) gain, whereas countries that concentrate in food and machinery exports (notably the Belarus, Estonia, Latvia, Lithuania, and especially Moldova) are the biggest losers. The results support the customs union theory of pricing within the CMEA. The author also estimates the initial impact of terms of trade on the GDP for all 15 countries. This, as well as the commodity composition of trade and estimated changes in relative prices by commodity at the 105-sector and 15-sector levels for each of the 15 independent states, is available in the appendix.

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