THE STUDY OF RATE STABILITY OF SIBERIAN RAILROAD
Since the Siberian Railroad has operated, South Korea, North Korea, and Russia are pursuing the mutual collaborations in several fields as energy, science, and agriculture. Recently, expand of commerce in the Russian Far East Region has an important meanings to both countries. Russia has an endowment of natural resources, its economy is heavily dependent on exports, and almost all of its energy goods are transported by railroad. Therefore, railroad services offering fair and stable rates to shippers are needed. The Russian government has supported the Siberian railroad system in the belief that railroad provides stable rates to shippers. One question that has not been answered adequately is whether the Siberian railroad system actually serves Russia’s railroad goals. In this study, an empirical analysis is presented of the impact of rate stability using theoretical and empirical models. It was found that railroad display price stability. Thus it is concluded that the Russian government’s railroad policy is valid: Siberian railroad may fulfill an important role in promoting the economic growth of Russia.