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How much do tariffs matter? Evidence from the Customs Union of Belarus, Kazakhstan and Russia

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  • Isakova, Asel
  • Koczan, Zsoka
  • Plekhanov, Alexander

Abstract

This paper provides an empirical analysis of the early impact of the formation of the customs union of Belarus, Kazakhstan and Russia and associated changes in import schedules on the structure of imports of the three member countries. Trade creation effects appear to have been insignificant, except in trade between Russia and third countries where Russian tariffs decreased. At the same time the change in tariffs appears to have created some trade diversion, with a significantly negative impact on imports from China to Kazakhstan in particular and a significantly positive impact on imports from within the customs union to Kazakhstan. The magnitude of this effect is relatively small, however. The results suggest that the benefits of the new tariff policy per se to member countries are limited at best. Larger benefits could come from a gradual removal of non-tariff barriers.

Suggested Citation

  • Isakova, Asel & Koczan, Zsoka & Plekhanov, Alexander, 2013. "How much do tariffs matter? Evidence from the Customs Union of Belarus, Kazakhstan and Russia," Conference papers 332360, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332360
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    File URL: https://ageconsearch.umn.edu/record/332360/files/6309.pdf
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    References listed on IDEAS

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    1. Debaere, Peter & Mostashari, Shalah, 2010. "Do tariffs matter for the extensive margin of international trade? An empirical analysis," Journal of International Economics, Elsevier, vol. 81(2), pages 163-169, July.
    2. Thompson, William R. & Reuveny, Rafael, 1998. "Tariffs and Trade Fluctuations: Does Protectionism Matter as Much as We Think?," International Organization, Cambridge University Press, vol. 52(2), pages 421-440, April.
    3. Veronika Zavacka, 2012. "The bullwhip effect and the Great Trade Collapse," Working Papers 148, European Bank for Reconstruction and Development, Office of the Chief Economist.
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    3. Gnutzmann, Hinnerk & Gnutzmann-Mkrtchyan, Arevik, 2020. "The Cost of Borders: Evidence from the Eurasian Customs Union," Hannover Economic Papers (HEP) dp-664, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    4. Aktoty Aitzhanova & Shigeo Katsu & Johannes F. Linn & Vladislav Yezhov (ed.), 2014. "Kazakhstan 2050: Toward a Modern Society for All," Books, Emerging Markets Forum, edition 1, number kazakh2050, July.
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    6. Arevik Mkrtchyan, 2015. "Determining the Common External Tariff in a Customs Union: Evidence from the Eurasian Customs Union," BEROC Working Paper Series 27, Belarusian Economic Research and Outreach Center (BEROC).
    7. Celbis, Mehmet Guney & Wong, Pui-hang & Guznajeva, Tatjana, 2018. "The Eurasian customs union and the economic geography of Belarus: A panel convergence approach," MERIT Working Papers 2018-029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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