Munich Personal RePEc Archive

Spatial pattern of Russia’s market integration

Gluschenko, Konstantin (2017): Spatial pattern of Russia’s market integration.

This is the latest version of this item.


Download (484kB) | Preview


This paper studies integration of regional goods markets in Russia over 2001–2019, analyzing the law of one price. The analysis involves all pairs of country’s regions, which provides a comprehensive spatial pattern of market integration. The region pairs are classified as belonging to one of four groups: integrated, conditionally integrated, not integrated but tending towards integration (converging) and neither integrated nor tending towards integration (among these, diverging). On average, a region is found to be perfectly and conditionally integrated with 48.7% of other regions and tending towards integration with 3.3% of them. Non-integration is due to random walking (41.2%) and deterministic divergence (6.8%). Geographical reasons explain the pattern obtained only partially. Apparently, idiosyncratic features of regional markets play a main role in non-integration.

Available Versions of this Item

MPRA is a RePEc service hosted by
the Munich University Library in Germany.