Bilateral trade flows within the Customs Union

Abstract

The article analyzes the intensity of foreign trade between Russia, Belarus and Kazakhstan using statistical indexes. Assessment was performed in three stages: Stage 1 – analysis of the intensity of bilateral trade flows in the world economy; Stage 2 - calculation of indicators within the Customs Union; Stage 3 - overall assessment of the significance of foreign trade within the Customs Union. The results suggest the existence of trade diversion effect. Negative impact of this effect is associated with artificial reorientation of trade flows within the Customs Union.