HOME » Publications » Economic Review

Abstract

Vol. 52, No. 2, pp. 157-165 (2001)

“A Singularity of Russia's Marketization -An Analysis of the Trade Margins-”
Masaaki Kuboniwa (The Institute of Economic Research, Hitotsubashi University)

Russia's transition to a market is characterized by many singularities, including large-scale of capital flight, a relatively small amount of foreign direct investment (FDI), hollowing-out of manufacturing production, marked development of the (domestic and foreign) trade sector and so on. The well-designed channels of capital flight from Russia include under-reporting of export earnings. One of the essential sources of capital flight in Russia may be trade margins, especially export trade margins in the fuels sector. This major source of capital flight has not yet been studied at all This paper develops further the analysis of Russia's singular marketization process by providing preliminary observations on trade margins using input-output data during the transition period.