Document Type

Peer-Reviewed Article

Publication Date



Reports on indirect transfers in trade among the former Soviet Union Republics. The Former Soviet Union (FSU) was composed of 15 republics which were very unevenly endowed with human, physical and natural resources. To contain regional imbalances within the Union and to integrate all republics into a tight and centrally commanded division of labour, the central government operated a scheme of vertical fiscal redistribution between the Union budget and the republican budgets. Through this system poorer republics became net receivers of direct transfers and richer republics became net donors. This scheme, which collapsed with the dissolution of the Union in 1991, channelled sizeable funds to the poorer Central Asian republics relative to their material product. Yet it failed to equilibrate large existing differences between the per capital fiscal revenues of the republics (Orlowski, 1992).


Version posted is pre-publication.

Published in its final version as: Orlowski, L. (1993). Indirect transfers in trade among Former Soviet Union republics: Sources, patterns, and policy responses in the post-Soviet period. Europe-Asia Studies, 45(6), 1001-1025.





To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.