How Russia Affects the Neighborhood - Trade, Financial, and Remittance Channels

Author/Editor:

Jaime Espinosa-Bowen ; Nadeem Ilahi ; Fahad Alturki

Publication Date:

December 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We test the extent to which growth in the 11 CIS countries (excluding Russia) was associated with developments in Russia, overall, as well as through the trade, financial and remittance channels over the last decade or so. The results point to the continued existence of economic links between the CIS countries and Russia, though these links may have altered since the 1998 crisis. Russia appears to influence regional growth mainly through the remittance channel and somewhat less so through the financial channel. There is a shrinking role of the trade (exports to Russia) channel. Russian growth shocks are associated with sizable effects on Belarus, Kazakhstan, Kyrgyz Republic, Tajikistan, and, to some extent, Georgia.

Series:

Working Paper No. 09/277

Subject:

English

Publication Date:

December 1, 2009

ISBN/ISSN:

9781451874228/1018-5941

Stock No:

WPIEA2009277

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

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