Russia: International Trade and Competition Econ 508 – Comparative Economic Systems Russia: International Trade and Competition Heath Ackley TR – 3:30

Russia: International Trade and CompetitionEcon 508 – Comparative Economic Systems

Russia: International Trade and CompetitionHeath Ackley

TR – 3:30 – 5:18

Russia: International Trade and Competition

Major Imports and Exports

•Exports: Petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures

•Imports: Machinery and equipment, consumer goods, medicines, meat, grain, sugar, semifinished metal products


Where Russia is in total trade compared to the world

2002 2002 Total TradeExports (US$ Billions) Imports (US$ Billions) (US$ Billions)

United States 1,018.59 1,429.85 2,448.44 1Germany 692.6686 663.009 1,355.68 2United Kingdom 396.2114 443.4228 839.6342 3Japan 448.8212 382.5777 831.3989 4France 393.9 379.5523 773.4524 5Italy 327.0762 318.9202 645.9964 6Canada 328.1685 301.3178 629.4863 7Netherlands 269.0482 239.3001 508.3483 8China 238.7378 209.3601 448.0979 9Belgium 214.0686 205.0169 419.0855 10Spain 195.1341 204.2564 399.3905 11Mexico 186.5482 211.1091 397.6573 12Korea, South 183.1409 179.5182 362.6591 13Switzerland 110.9469 100.5025 211.4494 14Sweden 109.7151 99.4207 209.1358 15Ireland 106.4661 96.962 203.4281 16Russia 116.2735 84.97 201.2435 17Austria 100.1145 101.067 201.1815 18Malaysia 105.8191 87.3552 193.1743 19Australia 84.3994 83.1715 167.5708 20

Country Rank


Russia’s top export partnersExports - 2003 Imports - 2003

United States 1,211,453.00$ 2,323,623.00$ Germany 1,206,491.00$ 2,073,436.00$ United Kingdom 1,100,652.00$ 1,302,091.00$ Finland 649,527.00$ 1,580,183.00$ France 522,491.00$ 715,930.00$ Switzerland 477,384.00$ 728,380.00$ China 382,488.00$ 788,979.00$ Japan 359,394.00$ 223,009.00$ Netherlands 336,838.00$ 435,041.00$ Turkey 331,475.00$ 2,001,295.00$ Italy 310,424.00$ 420,344.00$ Austria 278,546.00$ 326,052.00$ South Korea 256,297.00$ 218,740.00$ Poland 245,249.00$ 276,517.00$ Denmark 242,569.00$ 129,219.00$ Estonia 205,331.00$ 162,965.00$ Latvia 160,128.00$ 166,834.00$ Lithuania 156,652.00$ 130,168.00$ Sweden 135,824.00$ 176,931.00$ Norway 126,174.00$ 200,640.00$


Russia’s top import partnersExports - 2003 Imports - 2003

United States 1,211,453.00$ 2,323,623.00$ Germany 1,206,491.00$ 2,073,436.00$ Turkey 331,475.00$ 2,001,295.00$ Finland 649,527.00$ 1,580,183.00$ United Kingdom 1,100,652.00$ 1,302,091.00$ China 382,488.00$ 788,979.00$ Switzerland 477,384.00$ 728,380.00$ France 522,491.00$ 715,930.00$ Netherlands 336,838.00$ 435,041.00$ Italy 310,424.00$ 420,344.00$ Spain 66,642.00$ 417,879.00$ Austria 278,546.00$ 326,052.00$ Poland 245,249.00$ 276,517.00$ Japan 359,394.00$ 223,009.00$ Greece 58,181.00$ 219,581.00$ South Korea 256,297.00$ 218,740.00$ Bulgaria 52,419.00$ 210,632.00$ Czech Republic 75,502.00$ 204,468.00$ Ireland 79,823.00$ 201,268.00$ Norway 126,174.00$ 200,640.00$

Russia: International Trade and CompetitionRussia: International Trade and Competition

Trade Balance

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Russian Export 42.4 44.3 49.2 63.7 69.2 68.4 57.6 62.2 89.3 85.4 91 113Russian Import 37 26.8 28.3 33.2 31.5 38.8 32.3 21.9 22.3 30.7 36 44.1

Balance 5.4 17.5 20.9 30.5 37.7 29.6 25.3 40.3 67 54.7 55 68.9

0

20

40

60

80

100

120

In USD

1992 1994 1996 1998 2000 2002

Russia's Trade Balance

Russian Export

Russian Import

Balance


Agriculture - Imports1997 1998 1999 2000 2001

Meats and Meat Prep 2,734,397.00 2,316,809.00 1,234,684.00 1,050,352.00 1,755,841.00

($1,000) 22.0% 22.1% 15.6% 14.5% 20.2%

Cereals & Preps 1,193,625.00 664,410.00 838,693.00 773,593.00 496,401.00

($1,000) 9.6% 6.3% 10.6% 10.7% 5.7%

Dairy Products and Eggs 664,139.00 493,853.00 331,117.00 243,750.00 395,310.00

($1,000) 5.3% 4.7% 4.2% 3.4% 4.5%

Fruits and Vegetables 1,696,552.00 1,447,080.00 1,016,096.00 1,212,216.00 1,202,277.00

($1,000) 13.6% 13.8% 12.8% 16.8% 13.8%

Beverages and Tobacco 2,044,189.00 1,967,499.00 1,109,864.00 1,129,392.00 1,273,181.00

($1,000) 16.4% 18.7% 14.0% 15.6% 14.6%

Crude Materials 534,688.00 378,756.00 520,869.00 611,536.00 580,382.00

($1,000) 4.3% 3.6% 6.6% 8.5% 6.7%

Sugar and Honey 1,316,391.00 1,335,432.00 1,256,370.00 895,291.00 1,362,319.00

($1,000) 10.6% 12.7% 15.9% 12.4% 15.6%

Animal and Vegetable Oils 546,798.00 437,484.00 524,673.00 380,203.00 480,733.00

($1,000) 4.4% 4.2% 6.6% 5.3% 5.5%

Livestock Feedingstuffs 206,240.00 167,535.00 188,103.00 129,404.00 159,485.00

($1,000) 1.7% 1.6% 2.4% 1.8% 1.8%

Coffee, Tea and Cocoa 881,595.00 777,076.00 597,429.00 613,414.00 729,769.00

($1,000) 7.1% 7.4% 7.5% 8.5% 8.4%

Other Agricultural Imports 630,316.00 510,634.00 295,664.00 194,609.00 273,637.00

($1,000) 5.1% 4.9% 3.7% 2.7% 3.1%

Total Agricultural Imports 12,448,930.00 10,496,568.00 7,913,562.00 7,233,760.00 8,709,335.00

($1,000) 100.0% 100.0% 100.0% 100.0% 100.0%

Total Merchandise Trade 53,123,000.00 43,579,000.00 30,278,000.00 33,885,000.00 41,237,000.00

($1,000)Agricultural Percent of Total Merchandise Imports 23.434 24.086 26.136 21.348 21.12


Agriculture - Exports1997 1998 1999 2000 2001

Meats and Meat Prep 45,837.00 27,558.00 10,504.00 24,885.00 22,756.00

($1,000.00) 3.2% 2.7% 1.7% 2.3% 2.0%

Cereals & Preps 259,073.00 200,576.00 108,539.00 173,571.00 352,124.00

($1,000.00) 18.2% 19.4% 17.8% 16.1% 31.5%

Dairy Products and Eggs 53,339.00 46,751.00 26,650.00 95,112.00 78,138.00

($1,000.00) 3.7% 4.5% 4.4% 8.8% 7.0%

Fruits and Vegetables 39,526.00 51,951.00 45,973.00 67,269.00 75,944.00

($1,000.00) 2.8% 5.0% 7.5% 6.2% 6.8%

Beverages and Tobacco 114,259.00 51,799.00 48,444.00 80,360.00 119,728.00

($1,000.00) 8.0% 5.0% 7.9% 7.5% 10.7%

Crude Materials 663,733.00 483,232.00 220,036.00 352,935.00 183,720.00

($1,000.00) 46.6% 46.7% 36.0% 32.8% 16.4%

Sugar and Honey 61,914.00 44,868.00 51,153.00 63,843.00 64,997.00

($1,000.00) 4.3% 4.3% 8.4% 5.9% 5.8%

Animal and Vegetable Oils 28,957.00 28,056.00 22,813.00 78,838.00 54,285.00

($1,000.00) 2.0% 2.7% 3.7% 7.3% 4.9%

Livestock Feedingstuffs 18,692.00 13,816.00 10,945.00 23,398.00 29,345.00

($1,000.00) 1.3% 1.3% 1.8% 2.2% 2.6%

Coffee, Tea and Cocoa 111,590.00 57,278.00 41,277.00 59,967.00 67,388.00

($1,000.00) 7.8% 5.5% 6.8% 5.6% 6.0%

Other Agricultural Exports 26,443.00 28,393.00 24,199.00 56,361.00 69,286.00

($1,000.00) 1.9% 2.7% 4.0% 5.2% 6.2%

Total Agricultural Exports 1,423,363.00 1,034,278.00 610,533.00 1,076,539.00 1,117,711.00

($1,000.00) 100.0% 100.0% 100.0% 100.0% 100.0%

Total Merchandise Exports 85,096,000.00 71,313,000.00 72,886,000.00 103,070,000.00 100,653,000.00Agriculture Percent of Total Merchandise Exports 1.673 1.45 0.8377 1.044 1.11


Trade balance in Agriculture1997 1998 1999 2000 2001

Meats and Meat Prep (2,688,560.00) (2,289,251.00) (1,224,180.00) (1,025,467.00) (1,733,085.00)(1000.00)

Cereals & Preps (934,552.00) (463,834.00) (730,154.00) (600,022.00) (144,277.00)(1000.00)

Dairy Products and Eggs (610,800.00) (447,102.00) (304,467.00) (148,638.00) (317,172.00)(1000.00)

Fruits and Vegetables (1,657,026.00) (1,395,129.00) (970,123.00) (1,144,947.00) (1,126,333.00)(1000.00)

Beverages and Tobacco (1,929,930.00) (1,915,700.00) (1,061,420.00) (1,049,032.00) (1,153,453.00)(1000.00)

Crude Materials 129,045.00 104,476.00 (300,833.00) (258,601.00) (396,662.00)(1000.00)

Sugar and Honey (1,254,477.00) (1,290,564.00) (1,205,217.00) (831,448.00) (1,297,322.00)(1000.00)

Animal and Vegetable Oils (517,841.00) (409,428.00) (501,860.00) (301,365.00) (426,448.00)(1000.00)

Livestock Feedingstuffs (187,548.00) (153,719.00) (177,158.00) (106,006.00) (130,140.00)(1000.00)

Coffee, Tea and Cocoa (770,005.00) (719,798.00) (556,152.00) (553,447.00) (662,381.00)(1000.00)

Other Agricultural Exports (603,873.00) (482,241.00) (271,465.00) (138,248.00) (204,351.00)(1000.00)

Total Agricultural Exports (11,025,567.00) (9,462,290.00) (7,303,029.00) (6,157,221.00) (7,591,624.00)(1000.00)

Total Merchandise Exports 31,973,000.00 27,734,000.00 42,608,000.00 69,185,000.00 59,416,000.00


GDP - Services, Industry, Agriculture

60%

35%

5%

Services

Industry

Agriculture


Arable land% of GDPin agriculture

Most freeeconomies

Russia 8.00% 5.20% 135Canada 5.00% 2.20% 18China 13.00% 14.80% 127United States 19.00% 1.40% 6Kyrgyzstan 7.00% 38.70% 104

It seems countries that are more developed have a lower dependency on agriculture as a portion of their GDP.


Growth rates in Resource and Manufacturing Industries

1999 2000 2001 2002 2003Non-ferrous metals 10 15 4.9 6 6.2Ferrous metals 17 16 -0.2 3 8.9Fuel and energy 2.4 5 6.1 7 9.3Wood and processing 18 13 2.6 2.4 1.5Weighted average 9.3 10.4 4.2 5.5 7.8Electricity -1 1.8 1.6 -0.7 1Chemical 24 15 5 1.6 4.4Machine building 17 20 7.2 2 9.4Construction materials 10 13 5.5 3 6.4Light industry 12.1 21 5.8 -3.4 -2.3Food 4 14 8.4 6.5 5.1Weighted average 10.6 14.3 6.3 2.5 5.6





The next three tables depict real output, labor in those industries, and finally the real capital for those industries.

I will quickly run through some interesting trends.





Gas Production and Consumption


Oil - Exports


Adding oil exports

Documents

Russia: International Trade and Competition Econ 508 – Comparative Economic Systems Russia: International Trade and Competition Heath Ackley TR – 3:30