Trade Interaction between Chinese Regions and Russia: The Border Effect

Dmitry Izotov

Spatial Economics=Prostranstvennaya Ekonomika, 2020, issue 3, 24-51

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

Keywords: export; import; gravity model; foreign market; domestic market; trade barriers; border effect; region; coastal regions; interior regions; province; China; Russia (search for similar items in EconPapers)
JEL-codes: C30 F14 R11 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.spatial-economics.com/images/spatial-ec ... 3.024-051.Izotov.pdf (application/pdf)
http://spatial-economics.com/eng/arkhiv-nomerov/20 ... /968-SE-2020-3-24-51 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:far:spaeco:y:2020:i:3:p:24-51

DOI: 10.14530/se.2020.3.024-051

Access Statistics for this article

Spatial Economics=Prostranstvennaya Ekonomika is currently edited by Pavel Minakir

More articles in Spatial Economics=Prostranstvennaya Ekonomika from Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia) Contact information at EDIRC.
Bibliographic data for series maintained by Sergey Rogov ().