Regional Household and Poverty Effects of Russia's Accession to the World Trade Organization

This paper develops a seven-region comparative static computable general equilibrium model of Russia to assess the impact of accession to the World Trade Organization on these seven regions (the federal okrugs) of Russia. In order to assess poverty...

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Bibliographic Details
Main Authors:	Rutherford, Thomas, Tarr, David
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTANT ACCOUNTING AFFILIATED ORGANIZATIONS AGRICULTURE BANK POLICY BANKING SERVICES BARRIER BENCHMARK BIASES BILATERAL TRADE BUDGETING BUSINESS CYCLES CAPITAL FLOWS CAPITAL FUND CAPITAL OWNERS COMMODITIES COMMODITY CONSTANT RETURNS TO SCALE CONSUMERS COST STRUCTURE COST STRUCTURES COUNTRY MARKETS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DOLLAR VALUE DOMESTIC MARKET EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMICS LITERATURE EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT STATUS EQUILIBRIUM EXCHANGE RATE EXCLUSION EXPATRIATE EXPENDITURE EXPENDITURES EXPORT MARKET EXPORTERS EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL SERVICES FIRM PERFORMANCE FIXED COST FIXED COSTS FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP FREE TRADE FREE TRADE AGREEMENT GDP GENDER GOVERNMENT EXPENDITURE GOVERNMENT REVENUE GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT HOLDING HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS IMPERFECT COMPETITION IMPORT DUTIES INCOME INCOME GROWTH INCOME INEQUALITY INCOMES INCREASING RETURNS INCREASING RETURNS TO SCALE INEQUALITY INSURANCE INSURANCE MARKET INTELLECTUAL PROPERTY INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVESTMENT BARRIERS INVESTMENT CLIMATE INVESTMENT GAINS JOINT VENTURE JOINT VENTURE PARTNERS JOINT VENTURES JURISDICTION JURISDICTIONS LABOR MARKET LEGAL JURISDICTION LEGAL JURISDICTIONS LIVING STANDARDS MANUFACTURING INDUSTRIES MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET ECONOMY MARKET PRICES MONOPOLISTIC COMPETITION MONOPOLY MULTINATIONAL MULTINATIONAL FIRMS MULTINATIONALS MUTUAL FUND NATIONAL OUTPUT OPEN ECONOMY OPTIMIZATION OUTPUTS OWNERSHIP SHARES PACIFIC REGION POLITICAL ECONOMY PRICE TAKERS PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY QUOTA RENTS REAL EXCHANGE RATE REGULATORY BARRIERS REGULATORY ENVIRONMENT RETURN SAVINGS SAVINGS RATES SECURITIES SHARE OF CAPITAL SOCIAL WELFARE SOURCE OF INFORMATION SUPPLY CURVES TARIFF BARRIERS TAX TAX RATES TAX RETURNS TELECOMMUNICATIONS TELEPHONE SERVICES TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRADE POLICY TRADE REGIME TRADING TRANSPORTATION SERVICES UNION URBANIZATION URUGUAY ROUND UTILITY FUNCTION UTILITY FUNCTIONS VALUATION VALUE ADDED WAGE RATES WAGES WESTERN EUROPE WORLD MARKET WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9121130/regional-household-poverty-effects-russias-accession-world-trade-organization http://hdl.handle.net/10986/6548

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Summary:	This paper develops a seven-region comparative static computable general equilibrium model of Russia to assess the impact of accession to the World Trade Organization on these seven regions (the federal okrugs) of Russia. In order to assess poverty and distributional impacts, the model includes ten households in each of the seven federal okrugs, where household data are taken from the Household Budget Survey of Rosstat. The model allows for foreign direct investment in business services and endogenous productivity effects from additional varieties of business services and goods, which the analysis shows are crucial to the results. National welfare gains are about 4.5 percent of gross domestic product in the model, but in a constant returns to scale model they are only 0.1 percent. All deciles of the population in all seven federal okrugs can be expected to significantly gain from Russian World Trade Organization accession, but due to the capacity of their regions to attract foreign direct investment, households in the Northwest region gain the most, followed by households in the Far East and Volga regions. Households in Siberia and the Urals gain the least. Distribution impacts within regions are rather flat for the first nine deciles; but the richest decile of the population in the three regions that attract a lot of foreign investment gains significantly more than the other nine representative households in those regions.

Regional Household and Poverty Effects of Russia's Accession to the World Trade Organization

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