EU-Russia Free Trade Deal Boosts Russian Output But Hits Welfare
The study looked at how free trade between the EU and Russia would impact the Russian economy. Using a computer model, the researchers found that while total output in Russia would increase with a free trade agreement, it might not necessarily improve economic welfare for the country. This is because Russia's terms of trade could worsen. However, if productivity in Russia improves, the free trade agreement with the EU could be beneficial.