nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2005‒10‒04
two papers chosen by
Anna Y. Borodina
Perm State University

  1. Ukrainian international trade: How far from the potential? By Maryanchyk Ivan
  2. Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition By James Alm; Jorge Martinez-Vazquez; Benno Torgler

  1. By: Maryanchyk Ivan
    Abstract: This paper applies gravity theory to model Ukrainian trade patterns. I estimate two specifications — Global and Ukrainian. The former is used to forecast optimal trade volumes and compare with actual. The latter helps analyzing factors affecting Ukrainian trade. According to the results, Ukraine explored its trade potential with the EU. On the other hand, having, according to the model, low potential in 1995 the country achieved even better results in this direction in 2002. On the contrary, trade with CIS states deteriorated despite vast possibilities predicted by the model. Another unexplored opportunity is large economies of G7, trade partners in Asia and Americas. To reach its potential, Ukraine should liberalize trade relations with Russia (to gain in trade and reach the potential) and with EU (to safeguard achieved results). Accession to the WTO would help to explore potential with G7 and other big economies.
    JEL: F12 F13 F14
    Date: 2005–09–13
  2. By: James Alm; Jorge Martinez-Vazquez; Benno Torgler
    Abstract: This paper examines citizens’ attitudes toward paying taxes – what is sometimes termed their “tax morale”, or the intrinsic motivation to pay taxes – focusing on the experience of individuals in the Russian Federation. A unique aspect of our analysis is our ability to study tax morale before (1991), during (1995), and shortly after (1999) the transition of the Russian economy from a centrally planned economy to one based on market reliance. Our empirical analysis uses data from the World Values Survey and the European Values Survey. The results show decay in tax morale in the first four years of the transition from 1991 to 1995, and a small recovery in 1999. These results are consistent with the relevance of social norms in tax compliance, where the widespread perception of tax evasion and of a corrupt and inefficient state led initially to a decline of tax morale. However, the results also suggest that the restoration of a higher level of trust in the state, after some progress in the transition to a market economy, positively influenced tax morale. Using disaggregated data for Russian regions, we also find significant regional differences in tax morale, reflecting the degree of trust different regions have toward Moscow’s institutions and policies.
    Keywords: tax morale; tax compliance; social norms; transition countries
    JEL: H26 K42 P35
    Date: 2005–09

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