Competitive effects of low trade barriers: evaluations for the Kaliningrad region

International trade is an important factor affecting competition in domestic markets. Considering the vastness of Russian territory, one can expect the pro-competitive effect to vary from region to region. This analysis tests the hypothesis that the unique geographical position and economic status of the Kaliningrad region contribute to the rapid development of international trade, which, in turn, exerts competitive pressure on regional prices. The study incorporates two major lines of analysis: a) a comparison of the international trade growth rates of different Russian regions; b) an assessment of the influence of Russian and European prices on the consumer price index as well as prices for particular tradable goods in the Kaliningrad region. Rosstat and Eurostat serve as the main data sources. To test their hypothesis, the authors use the methods of statistical and econometric analysis. The status of the free economic zone and unique geographic position of the Kaliningrad region do not result in high growth rates of international trade in the region, but rather lead to a structural shift towards import thus exerting additional competitive pressure on domestic prices. The analysis did not confirm the hypothesis about the considerable influence of European prices on the short run dynamics of the regional consumer prices index or prices for certain imported goods. Nevertheless, indirect evidence of competitive effects of foreign trade was found in the course of a comparative analysis of price levels in the regions of the Northwest Federal district: the cost of the standard set of consumer goods and services in the Kaliningrad region is lower than the level defined by the regional per capita income

Otkrytost' rossijskoj jekonomiki: tendencii i mezhdunarodnye sopostavlenija [The openness of the Russian economy: tendencies and international comparison]

This paper assesses the level of openness of the Russian economy. It demonstrates that the openness indicators used in the Concept of Long-term Social and Economic Development of the Russian Federation differ from those employed by international organisations. The paper examines the intensity of Russian trade in terms of its gross domestic product and the relatively high barriers in relation to import penetration in Russia. Methodological differences determine the differences in the analysis results

The openness of the Russian economy: tendencies and international comparison

This paper assesses the level of openness of the Russian economy. It demonstrates that the openness indicators used in the Concept of Long-term Social and Economic Development of the Russian Federation differ from those employed by international organisations. The paper examines the intensity of Russian trade in terms of its gross domestic product and the relatively high barriers in relation to import penetration in Russia. Methodological differences determine the differences in the analysis results

Competitive effects of low trade barriers: evaluations for the Kaliningrad region

International trade is an important factor affecting competition in domestic markets. Considering the vastness of Russian territory, one can expect the pro-competitive effect to vary from region to region. This analysis tests the hypothesis that the unique geographical position and economic status of the Kaliningrad region contribute to the rapid development of international trade, which, in turn, exerts competitive pressure on regional prices. The study incorporates two major lines of analysis: a) a comparison of the international trade growth rates of different Russian regions; b) an assessment of the influence of Russian and European prices on the consumer price index as well as prices for particular tradable goods in the Kaliningrad region. Rosstat and Eurostat serve as the main data sources. To test their hypothesis, the authors use the methods of statistical and econometric analysis. The status of the free economic zone and unique geographic position of the Kaliningrad region do not result in high growth rates of international trade in the region, but rather lead to a structural shift towards import thus exerting additional competitive pressure on domestic prices. The analysis did not confirm the hypothesis about the considerable influence of European prices on the short run dynamics of the regional consumer prices index or prices for certain imported goods. Nevertheless, indirect evidence of competitive effects of foreign trade was found in the course of a comparative analysis of price levels in the regions of the Northwest Federal district: the cost of the standard set of consumer goods and services in the Kaliningrad region is lower than the level defined by the regional per capita income

Concerted practice enforcement in Russia: How judicial review shapes the standards of evidence and number of enforcement targets

A judicial review of the infringement decisions of the competition authority substantially affects the standard of evidence in competition enforcement as well as the structure of cases that the competition authority takes. Enforcement against concerted practice in Russia represents a case-study of interaction between commercial courts of first instance, the Highest Court, the competition authority as enforcer, market participants and the legislator to influence the standards of liability under investigation of concerted practice. We examine the judicial review of infringement decisions on concerted practice and track the evolution of legal definition and sufficiency of evidence in such cases. We show, first, that in Russian enforcement, the ability of the Highest Court to influence the criteria of first instance courts is limited (in contrast to the ability of the first instance court to influence the strategy of enforcement by the competition authority). Second, the increase in the burden of proof motivates the competition authority to refrain from an investigation of concerted practice, in accordance with the prediction of the model of the selection of enforcement target by reputation-maximizing authority