Studies on Russian Economic Development

, Volume 22, Issue 6, pp 587–596 | Cite as

Harmonization of domestic and world prices for raw-material products in Russia’s strategy of economic development

  • J. Sapir
Economic Policy
  • 42 Downloads

Abstract

This article discusses how in the modern Russian economy domestic and export prices for basic resources—oil, gas, oil products, metals, timber, chemicals, and grain—should be related. The correlation between the level of domestic prices for raw materials and industrialization processes is shown. The need for a coherent industrial policy aimed at a more rapid development of the processing and manufacturing industries is underlined. The conclusion is that the various measures of indirect regulation of domestic prices for basic resources are a natural constituent of a reasonable economic development strategy for Russia. Some possible actions to curb the growth in domestic prices for raw materials and primary products are considered.

Keywords

Interest Rate Foreign Direct Investment Real Exchange Rate Real Interest Rate RUSSIAN Economic Development 

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Copyright information

© Pleiades Publishing, Ltd. 2011

Authors and Affiliations

  • J. Sapir
    • 1
  1. 1.EHESS-ParisParisFrance

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