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Regular version of the site

Article

Industry-Level Effects from Integration between Russia, Belarus and Kazakhstan through Industrial Cooperation

V.A. Salnikov, A.A. Gnidchenko, D.I. Galimov.

We propose a method for estimating the upper limit for integration effect associated with the growth in comparative advantages resulting from industrial cooperation at the manufacturing industry level and apply it to the case of the Eurasian Customs Union (Russia, Belarus and Kazakhstan). The key building blocks of the approach are the link between a country’s comparative advantages in final and intermediate products and empirically defined productivity gap between growing and shrinking enterprises (in terms of employment).