Regional Impacts of Russia’s Accession to the World Trade Organization

In this paper we develop a computable general equilibrium model of the regions of Russia to assess the impact of accession to the World Trade Organization (WTO) on the regions of Russia. We estimate that the average gain in welfare as a percentage of consumption for the whole country is 7.8 percent...

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Main Authors:	Rutherford, Thomas, Tarr, David
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	AGGREGATE CONSUMPTION AGGREGATE TRADE ANTIDUMPING ANTIDUMPING CASES AVERAGE TARIFF BUSINESS SERVICES CITIES COMPETITIVENESS CONSTANT ELASTICITY OF TRANSFORMATION CONSUMERS COUNTERFACTUAL SIMULATIONS CURRENCY DEMAND FOR GOODS ECONOMETRIC ESTIMATES ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIC THEORY ECONOMICS LITERATURE ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT TAXES EXPORTERS EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FIXED COSTS FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN GOODS FOREIGN OWNERSHIP FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GOOD INVESTMENT CLIMATE IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT DUTIES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL DEVELOPMENT INTERNATIONAL TRADE INVESTMENT LIBERALIZATION MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET ECONOMY MARKET POWER MARKET PRICES MONOPOLISTIC COMPETITION MONOPOLY MULTINATIONAL FIRMS MUTUAL FUND NATIONAL OUTPUT NONDISCRIMINATORY BARRIERS OWNERSHIP SHARES PRICE TAKERS PRIMARY FACTORS PRIMARY FACTORS OF PRODUCTION PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFITABILITY REAL EXCHANGE RATE REDUCTION IN TARIFFS REGULATORY BARRIERS SALES SERVICES MARKETS SPREAD SUBSTITUTE SUBSTITUTES SUPPLIERS SUPPLY CURVES SURPLUS TARIFF BARRIERS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX RATES TELECOMMUNICATION TELECOMMUNICATIONS TELEPHONE SERVICES TERMS OF TRADE TRADE LIBERALIZATION TRADE MODELS TRADE REGIME UNSKILLED LABOR VALUE OF IMPORTS WAGES WELFARE GAINS WESTERN EUROPE WORLD MARKET WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO PROFITS ZERO TARIFF
Online Access:	http://documents.worldbank.org/curated/en/2006/09/7071193/regional-impacts-russias-accession-world-trade-organization http://hdl.handle.net/10986/9304

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recordtype	oai_dc
spelling	okr-10986-93042021-04-23T14:02:41Z Regional Impacts of Russia’s Accession to the World Trade Organization Rutherford, Thomas Tarr, David AGGREGATE CONSUMPTION AGGREGATE TRADE ANTIDUMPING ANTIDUMPING CASES AVERAGE TARIFF BUSINESS SERVICES CITIES COMPETITIVENESS CONSTANT ELASTICITY OF TRANSFORMATION CONSUMERS COUNTERFACTUAL SIMULATIONS CURRENCY DEMAND FOR GOODS ECONOMETRIC ESTIMATES ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIC THEORY ECONOMICS LITERATURE ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT TAXES EXPORTERS EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FIXED COSTS FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN GOODS FOREIGN OWNERSHIP FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GOOD INVESTMENT CLIMATE IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT DUTIES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL DEVELOPMENT INTERNATIONAL TRADE INVESTMENT LIBERALIZATION MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET ECONOMY MARKET POWER MARKET PRICES MONOPOLISTIC COMPETITION MONOPOLY MULTINATIONAL FIRMS MUTUAL FUND NATIONAL OUTPUT NONDISCRIMINATORY BARRIERS OWNERSHIP SHARES PRICE TAKERS PRIMARY FACTORS PRIMARY FACTORS OF PRODUCTION PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFITABILITY REAL EXCHANGE RATE REDUCTION IN TARIFFS REGULATORY BARRIERS SALES SERVICES MARKETS SPREAD SUBSTITUTE SUBSTITUTES SUPPLIERS SUPPLY CURVES SURPLUS TARIFF BARRIERS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX RATES TELECOMMUNICATION TELECOMMUNICATIONS TELEPHONE SERVICES TERMS OF TRADE TRADE LIBERALIZATION TRADE MODELS TRADE REGIME UNSKILLED LABOR VALUE OF IMPORTS WAGES WELFARE GAINS WESTERN EUROPE WORLD MARKET WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO PROFITS ZERO TARIFF In this paper we develop a computable general equilibrium model of the regions of Russia to assess the impact of accession to the World Trade Organization (WTO) on the regions of Russia. We estimate that the average gain in welfare as a percentage of consumption for the whole country is 7.8 percent (or 4.3 percent of consumption); we estimate that three regions will gain considerably more: Northwest (11.2 percent), St. Petersburg (10.6 percent) and Far East (9.7 percent). We estimate that the Urals will gain only 6.2 percent of consumption, considerably less than the national average. The principal explanation in our central analysis for the differences across regions is the ability of the different regions to benefit from a reduction in barriers against foreign direct investment. The three regions with the largest welfare gains are clearly the regions with the estimated largest shares of multinational investment. But the Urals has attracted relatively little FDI in the service sectors. An additional reason for differences across regions is quantified in our sensitivity analysis: regions may gain more from WTO accession if they can succeed in creating a good investment climate. 2012-06-27T13:59:25Z 2012-06-27T13:59:25Z 2006-09 http://documents.worldbank.org/curated/en/2006/09/7071193/regional-impacts-russias-accession-world-trade-organization http://hdl.handle.net/10986/9304 English en_US Policy Research Working Paper; No. 4015 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Eastern Europe Commonwealth of Independent States Russian Federation
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGGREGATE CONSUMPTION AGGREGATE TRADE ANTIDUMPING ANTIDUMPING CASES AVERAGE TARIFF BUSINESS SERVICES CITIES COMPETITIVENESS CONSTANT ELASTICITY OF TRANSFORMATION CONSUMERS COUNTERFACTUAL SIMULATIONS CURRENCY DEMAND FOR GOODS ECONOMETRIC ESTIMATES ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIC THEORY ECONOMICS LITERATURE ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT TAXES EXPORTERS EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FIXED COSTS FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN GOODS FOREIGN OWNERSHIP FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GOOD INVESTMENT CLIMATE IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT DUTIES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL DEVELOPMENT INTERNATIONAL TRADE INVESTMENT LIBERALIZATION MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET ECONOMY MARKET POWER MARKET PRICES MONOPOLISTIC COMPETITION MONOPOLY MULTINATIONAL FIRMS MUTUAL FUND NATIONAL OUTPUT NONDISCRIMINATORY BARRIERS OWNERSHIP SHARES PRICE TAKERS PRIMARY FACTORS PRIMARY FACTORS OF PRODUCTION PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFITABILITY REAL EXCHANGE RATE REDUCTION IN TARIFFS REGULATORY BARRIERS SALES SERVICES MARKETS SPREAD SUBSTITUTE SUBSTITUTES SUPPLIERS SUPPLY CURVES SURPLUS TARIFF BARRIERS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX RATES TELECOMMUNICATION TELECOMMUNICATIONS TELEPHONE SERVICES TERMS OF TRADE TRADE LIBERALIZATION TRADE MODELS TRADE REGIME UNSKILLED LABOR VALUE OF IMPORTS WAGES WELFARE GAINS WESTERN EUROPE WORLD MARKET WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO PROFITS ZERO TARIFF
spellingShingle	AGGREGATE CONSUMPTION AGGREGATE TRADE ANTIDUMPING ANTIDUMPING CASES AVERAGE TARIFF BUSINESS SERVICES CITIES COMPETITIVENESS CONSTANT ELASTICITY OF TRANSFORMATION CONSUMERS COUNTERFACTUAL SIMULATIONS CURRENCY DEMAND FOR GOODS ECONOMETRIC ESTIMATES ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIC THEORY ECONOMICS LITERATURE ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT TAXES EXPORTERS EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FIXED COSTS FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN GOODS FOREIGN OWNERSHIP FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GOOD INVESTMENT CLIMATE IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT DUTIES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL DEVELOPMENT INTERNATIONAL TRADE INVESTMENT LIBERALIZATION MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET ECONOMY MARKET POWER MARKET PRICES MONOPOLISTIC COMPETITION MONOPOLY MULTINATIONAL FIRMS MUTUAL FUND NATIONAL OUTPUT NONDISCRIMINATORY BARRIERS OWNERSHIP SHARES PRICE TAKERS PRIMARY FACTORS PRIMARY FACTORS OF PRODUCTION PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFITABILITY REAL EXCHANGE RATE REDUCTION IN TARIFFS REGULATORY BARRIERS SALES SERVICES MARKETS SPREAD SUBSTITUTE SUBSTITUTES SUPPLIERS SUPPLY CURVES SURPLUS TARIFF BARRIERS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX RATES TELECOMMUNICATION TELECOMMUNICATIONS TELEPHONE SERVICES TERMS OF TRADE TRADE LIBERALIZATION TRADE MODELS TRADE REGIME UNSKILLED LABOR VALUE OF IMPORTS WAGES WELFARE GAINS WESTERN EUROPE WORLD MARKET WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO PROFITS ZERO TARIFF Rutherford, Thomas Tarr, David Regional Impacts of Russia’s Accession to the World Trade Organization
geographic_facet	Europe and Central Asia Eastern Europe Commonwealth of Independent States Russian Federation
relation	Policy Research Working Paper; No. 4015
description	In this paper we develop a computable general equilibrium model of the regions of Russia to assess the impact of accession to the World Trade Organization (WTO) on the regions of Russia. We estimate that the average gain in welfare as a percentage of consumption for the whole country is 7.8 percent (or 4.3 percent of consumption); we estimate that three regions will gain considerably more: Northwest (11.2 percent), St. Petersburg (10.6 percent) and Far East (9.7 percent). We estimate that the Urals will gain only 6.2 percent of consumption, considerably less than the national average. The principal explanation in our central analysis for the differences across regions is the ability of the different regions to benefit from a reduction in barriers against foreign direct investment. The three regions with the largest welfare gains are clearly the regions with the estimated largest shares of multinational investment. But the Urals has attracted relatively little FDI in the service sectors. An additional reason for differences across regions is quantified in our sensitivity analysis: regions may gain more from WTO accession if they can succeed in creating a good investment climate.
format	Publications & Research :: Policy Research Working Paper
author	Rutherford, Thomas Tarr, David
author_facet	Rutherford, Thomas Tarr, David
author_sort	Rutherford, Thomas
title	Regional Impacts of Russia’s Accession to the World Trade Organization
title_short	Regional Impacts of Russia’s Accession to the World Trade Organization
title_full	Regional Impacts of Russia’s Accession to the World Trade Organization
title_fullStr	Regional Impacts of Russia’s Accession to the World Trade Organization
title_full_unstemmed	Regional Impacts of Russia’s Accession to the World Trade Organization
title_sort	regional impacts of russia’s accession to the world trade organization
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/09/7071193/regional-impacts-russias-accession-world-trade-organization http://hdl.handle.net/10986/9304
_version_	1764406573211320320

Regional Impacts of Russia’s Accession to the World Trade Organization

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