Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy

Research background: The position of a country in the international division of labour is determined by the competitiveness of its trade, the structure of which may both reveal and perpetuate the comparative advantages possessed. This is particularly true for Dutch disease economies such as Russia....

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Main Author: Krzysztof Falkowski
Format: Article
Language:English
Published: Institute of Economic Research 2018-12-01
Series:Equilibrium. Quarterly Journal of Economics and Economic Policy
Subjects:
Online Access:http://economic-research.pl/Journals/index.php/eq/article/view/1125
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spelling doaj-1255ba8241e346f9b6b4f5d5a26957c32020-11-25T01:30:44ZengInstitute of Economic ResearchEquilibrium. Quarterly Journal of Economics and Economic Policy1689-765X2353-32932018-12-0113466768710.24136/eq.2018.0321125Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economyKrzysztof Falkowski0Warsaw School of EconomicsResearch background: The position of a country in the international division of labour is determined by the competitiveness of its trade, the structure of which may both reveal and perpetuate the comparative advantages possessed. This is particularly true for Dutch disease economies such as Russia. Recently, economic literature has seen a growing interest in the topic of Russia’s economic relations with the European Union and China. This article is aimed at being the Author’s contribution to this discussion. Purposes of the article: (1) to discuss the existing trade interdependence between Russia and the EU28, and Russia and China; (2) to try to assess the extent to which the current structure of Russian trade with these two partners corresponds with the competitiveness of the Russian economy. Methods: An in-depth analysis of Russia-EU28 and Russia-China trade interdependencies in 2007-2015 has been conducted, with emphasis on the categories of goods within the spectrum from low- to high-technology, according to the OECD classification. Furthermore, in order to analyse Russia’s competitive profile with regard to the same categories of goods, Balassa’s methodology of revealed comparative advantages has been applied. Findings & Value added: In the recent years, a growing importance of China in Russian trade turnover can be observed, being the effect of dynamic growth of Chinese economy, cooling political relations between Moscow and Brussels and the drop in oil prices in international markets. The existing structure of Russian trade with the EU28 and China seems likely to preserve its traditional competitive advantages in the medium-low-technology goods and oil, which, in turn, will only further exacerbate the negative consequences of the so-called Dutch disease affecting the Russian economy.http://economic-research.pl/Journals/index.php/eq/article/view/1125trade interdependencecompetitivenesscompetitive advantagesRussiaEuropean UnionChina
collection DOAJ
language English
format Article
sources DOAJ
author Krzysztof Falkowski
spellingShingle Krzysztof Falkowski
Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
Equilibrium. Quarterly Journal of Economics and Economic Policy
trade interdependence
competitiveness
competitive advantages
Russia
European Union
China
author_facet Krzysztof Falkowski
author_sort Krzysztof Falkowski
title Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
title_short Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
title_full Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
title_fullStr Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
title_full_unstemmed Trade interdependence between Russia vs. the European Union and China within the context of the competitiveness of the Russian economy
title_sort trade interdependence between russia vs. the european union and china within the context of the competitiveness of the russian economy
publisher Institute of Economic Research
series Equilibrium. Quarterly Journal of Economics and Economic Policy
issn 1689-765X
2353-3293
publishDate 2018-12-01
description Research background: The position of a country in the international division of labour is determined by the competitiveness of its trade, the structure of which may both reveal and perpetuate the comparative advantages possessed. This is particularly true for Dutch disease economies such as Russia. Recently, economic literature has seen a growing interest in the topic of Russia’s economic relations with the European Union and China. This article is aimed at being the Author’s contribution to this discussion. Purposes of the article: (1) to discuss the existing trade interdependence between Russia and the EU28, and Russia and China; (2) to try to assess the extent to which the current structure of Russian trade with these two partners corresponds with the competitiveness of the Russian economy. Methods: An in-depth analysis of Russia-EU28 and Russia-China trade interdependencies in 2007-2015 has been conducted, with emphasis on the categories of goods within the spectrum from low- to high-technology, according to the OECD classification. Furthermore, in order to analyse Russia’s competitive profile with regard to the same categories of goods, Balassa’s methodology of revealed comparative advantages has been applied. Findings & Value added: In the recent years, a growing importance of China in Russian trade turnover can be observed, being the effect of dynamic growth of Chinese economy, cooling political relations between Moscow and Brussels and the drop in oil prices in international markets. The existing structure of Russian trade with the EU28 and China seems likely to preserve its traditional competitive advantages in the medium-low-technology goods and oil, which, in turn, will only further exacerbate the negative consequences of the so-called Dutch disease affecting the Russian economy.
topic trade interdependence
competitiveness
competitive advantages
Russia
European Union
China
url http://economic-research.pl/Journals/index.php/eq/article/view/1125
work_keys_str_mv AT krzysztoffalkowski tradeinterdependencebetweenrussiavstheeuropeanunionandchinawithinthecontextofthecompetitivenessoftherussianeconomy
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