Trade liberalisation and opening in post-soviet limited access orders

Abstract

ABSTRACT How does trade liberalisation shape post-Soviet Limited Access Orders (LAOs) where dominant elites restrict access to political and economic resources for the sake of private gains? By drawing on the case of trade liberalisation between the EU and Ukraine, this paper argues that in post-Soviet LAOs the effect of trade liberalisation largely depends on the quality of the pre-existing alliance between political and economic elites in exporting sectors. The findings imply that external trading partners wishing to promote economic and political opening must not ignore the ownership structure of key exporting sectors and the involvement of these key owners in rent-seeking practices. Otherwise, trade liberalisation helps to ensure the durability of LAOs.