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Influence of Tariff Liberalization on Bilateral Trade: Implications for Russia and Its Asian Trade Partners
Abstract
The study aims at evaluating and comparing trade effects of tariff liberalization on bilateral trade between Russian and its Asian trade partners: China, India, Thailand and Vietnam. The partial equilibrium model - the Software for Market Analysis and Restrictions on Trade (SMART) model - underlies the research methodology. The authors calculate the trade effects of 1% linear cut of customs duties imposed on key commodity groups of mutual import flows and identify elasticities of bilateral import of different commodity groups on customs duties. On the basis of a comparative analysis of the results obtained, the authors formulated a set of conclusions regarding the efficiency of tariff regulation of imports in different countries and industrial sectors, tracking the changes of the influence of tariff liberalization on the dynamics of import of various categories of goods (depending on the value added and technological effectiveness).
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