Russian Regional External Trading 1997-2001

Using recent regional data from Russia, the pattern of trade of Russia’s regions with the CIS and rest of the world (non-CIS) is examined using a series of gravity equations. Some evidence of shifting trade patterns toward non-CIS countries is found, but trade still has an inward orientation from the Soviet era reflecting infrastructure and other ties that remain in place. Evidence suggests an export oriented trade policy by the Russian government can grow the Russian economy at both the regional and national levels. Very little evidence was found that corruption enhanced or diverted trade in any way.