Foreign investments and tariff protection revisited: correcting the trade balance of the Russian Empire, 1880–1913

Abstract

Abstract This article examines the accuracy of Russian foreign trade statistics between 1880 and 1913 and provides empirical evidence that prior to the introduction of the gold standard in 1897, Russia’s trade surplus was systematically understated. My novel trade data suggest a higher degree of protectionism with an increase of an ad valorem equivalent tariff up to 4 percentage points. Moreover, my corrections of the current account balance reduce the annual average deficit of the balance for 1885–1897 by 67 percent, supporting the idea that there was a substantial increase of foreign investments in the post-gold standard period in Russia.