DOES THE SHARE OF CRUDE PETROLEUM AND NATURAL GAS IN EXPORTS INCREASE TOTAL EXPORTS? THE RUSSIAN CASE

Abstract

Under the new perspective of the world economy, the relationship between the determinants and the overall trade balance of a country in conventional models may not necessarily be the same as with bilateral trade balance. This paper develops a new approach to trade balance modeling that captures the effects of the factors suggested by the conventional model and explores the dynamic relationship between variables of the new model. Using recently developed dynamic panel data analysis techniques, the approach is e…