ABSTRACT

This study presents novel research on the economic geography of Belarus. The 118 regions of Belarus are examined in relation to the Eurasian Customs Union (EACU) through the period 2005–2014. Our estimation methods specifically take spatial and dynamic processes into account. We observe that EACU membership has corresponded to a slowdown in the process of regional economic convergence in Belarus, and intensified economic competition with a geographical dimension among regions. Furthermore, we find some evidence that urban and industrial regions, and regional clusters of private business activity have benefited more from the EACU relative to less urbanized areas. Additionally, spatial clusters and outliers are identified and compared across the periods prior and after the establishment of the EACU. Our preferred estimation model results suggest half-lives of convergence of about 9.4 and 31.5 years for the pre-EACU and EACU periods, respectively.