The Eurasian Economic Union in search of strategic partners: The gravity effects of integration blocs

Abstract

The present contribution aims at researching the new Eurasian project on the post-Soviet area, the Eurasian Economic Union, by analyzing the legal aspects of both its institutional and economic frameworks. Because of its relatively small size, not only should the Eurasian Economic Union increase bilateral trade with its member states but also promote commerce outside the Union. In this regard, the crucial objective for success is the development of long-term relationships with its strategic partners based on mutual economic benefits and shared values. We applied the gravity model and identified not only which factors influence bilateral foreign trade, including the differences in partners? values based on a neo-institutional approach, but also analyzed those integration blocs and groups of countries to determine with which partners the Eurasian Economic Union should develop strategic partnerships.