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Spatial pattern of Russia’s market integration

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

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This paper studies integration of regional goods markets in Russia over 2001–2015 with the use of time series analysis, based on the law of one price as the criterion of market integration. The cost of a staples basket is used as a price representative. The analysis involves all pairs of country’s regions, thus providing a comprehensive 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, and neither integrated nor tending towards integration. The results suggest that less than a half of region pairs fall into the fourth category.

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