Scientific Journal SPATIAL ECONOMICS - Trade Interaction between Chinese Regions and Russia: The Border Effect

In the section	Articles
Title of the article	Trade Interaction between Chinese Regions and Russia: The Border Effect
Pages	24-51
Author	Dmitriy Aleksandrovich Izotov Candidate of Sciences (Economics), Leading Research Fellow Economic Research Institute FEB RAS Economic Research Institute FEB RAS, 153 Tikhookeanskaya St., Khabarovsk, 680042, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0001-9199-6226
Abstract	The paper analyzes the dynamics and structure of trade interaction between Chinese regions and Russia using official Chinese data and assesses the border effects for export and import flows. The analysis shows that Chinese imports from Russia exhibit a much more uneven distribution across Chinese regions than exports. The results of the gravity model estimation indicate that the size of the border effect for exports of Chinese regions to Russia was larger compared to trade barriers with other countries. At the same time, the hurdles impeding the access of Russian production to Chinese regional markets expressed in the ad-valorem tariff equivalent were higher than for other countries. The estimates reveal that Russian exports to Chinese regions have been experiencing higher barriers in recent years than Chinese regional exports to Russia. The findings suggest that leveling barriers would reinforce the access of Chinese coastal regions to the Russian market, making exports to Russia even less evenly distributed across Chinese regions. A substantial reduction of barriers is likely to increase Russian imports in China thanks to the growing flows of Russian goods to virtually all Chinese regions. Accordingly, Russian exporters need to diversify their supply across Chinese regions so as to bypass the middlemen and tap new regional markets in China
Code	339+332
JEL	C30, F14, R11
DOI	https://dx.doi.org/10.14530/se.2020.3.024-051
Keywords	export ♦ import ♦ gravity model ♦ foreign market ♦ domestic market ♦ trade barriers ♦ border effect ♦ region ♦ coastal regions ♦ interior regions ♦ province ♦ China ♦ Russia
Download	SE.2020.3.024-051.Izotov.pdf
For citation	Izotov D.A. Trade Interaction between Chinese Regions and Russia: The Border Effect. Prostranstvennaya Ekonomika = Spatial Economics, 2020, vol. 16, no. 3, pp. 24–51. https://dx.doi.org/10.14530/se.2020.3.024-051 (In Russian).
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Submitted	05.04.2020
Revised	11.05.2020
Published online	30.09.2020