Globalisation and Deglobalisation- Russia

Abstract

We argue that, as emerging market economies (EMEs) gradually converge with advanced economies, the advantages they gain from participating in trade and global value chains (GVCs) have lessened, resulting in lower growth in world trade postcrisis. But EMEs can sustain their long-term growth by participating in the higher value-added and more complex parts of GVCs.

Protectionism is an increasing threat to future global economic growth. The solution lies largely in addressing inequality and fostering structural transformation. Based on Russia’s experience, we conclude that an optimal policy mix for a commodityexporting EME consists of a floating exchange rate, inflation targeting, a fiscal rule, and macroprudential policy.

Full Publication: Globalisation and Deglobalisation

Keywords: global value chains, globalisation, international trade, Russia

JEL Classification: D63, E58, F02, F41, F60