By Yulia Vymyatnina, Daria Antonova (auth.)
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Extra resources for Creating a Eurasian Union: Economic Integration of the Former Soviet Republics
These tough technical standards and regulations in addition make it difficult for any member country to be a member of international production chains, further decreasing benefits of the union. Tarr also notes that there is no trade creation or market access since numerous bilateral free trade agreements that were in place opened up the market to the extent it could be done without further work on unification of quality standards. He also stresses that potential gains for all member countries are in liberalization of the service sector, free movement of capital and labor, and decrease of nontariff barriers.
Alternative measures include total trade turnovers of countries i and j in the denominator, or use only exports (imports) of countries i and j to each other in the numerator and total exports (imports) of these countries in the denominator. We use another measure that structurally coincides with the measure suggested by Shin and Wang (2004a, 2004b) for intraindustry trade, which also we use. In this way we have internal compatibility between measures of relative trade intensities. Besides, the measure for trade intensity has a net export (absolute value) in the numerator, which, in our opinion, is a more correct measure, as it allows escaping double counting.
4). The highest share in imports belongs to Belarus, while Russia has the biggest export share among the CU countries, though it has been decreasing since 2010. Kazakhstan as of yet has the lowest shares in both exports and imports, which has been fluctuating around 25% of the CU imports for the last 8 years, though recently its share in imports has grown due to imports substitution from China to CU partners (Isakova and Plekhanov 2012). 3 Percentage shares of Belarus, Kazakhstan, and Russia in total imports of the CU countries.
Creating a Eurasian Union: Economic Integration of the Former Soviet Republics by Yulia Vymyatnina, Daria Antonova (auth.)