The Sanctions’ Impact on the Integration Level of the Russian Market of Vegetables

• Main Author: Anna Vladimirovna Stupnikova
• Format: Article
• Language: Russian
• Published: Economic Research Institute of the Far East Branch of the Russian Academy of Sciences 2015-09-01
• Series: Prostranstvennaâ Èkonomika
• Subjects: spatial market integration; sanctions; vegetables market; volatility; spatial price behaviour; border effect; subject of the Russian Federation
• Online Access: http://spatial-economics.com/eng/images/spatial-econimics/3_2015/SE.2015.3.074-096.Stupnikova.pdf

The article tests the hypothesis that the imposition of sanctions on the supply of foodstuffs in 2014 has a negative impact on the level of integration of the Russian market of vegetables. To test this hypothesis, the study was conducted for two time periods: August 2013 - July 2014 (the period before the imposition of sanctions), August - December 2014 (period of prohibition to import vegetables from EU, USA, Australia). The author investigates vegetables’ markets limited by the territory of each subject of the Russian Federation. The study was conducted within the concept of spatial market equilibrium. Under the integrated market the author mentions the market spatial dispersed elements of which are characterized by the law of one price in a weak form. The study of integration was carried out in two ways: by determining the volatility of price data for the markets of vegetables of the RF subjects and evaluation of the border effect for groups of markets, poorly integrated at the national level. The findings indicate a decrease in the degree of spatial integration of the Russian market of vegetables as a result of the imposition of sanctions, which confirms the hypothesis