Abstract
The present study assesses the extent of institutional barriers to trade between the Russian Far East (RFE) and Northeast Asian countries by decomposing the overall costs of cross-border trade. The results indicate that the duties imposed by Russia on RFE exports are the main determinant of tariff hurdles between RFE and Northeast Asia. The institutional barriers between RFE and China are shown to have decreased, while those with Japan have increased. Over the 2002–2017 period, institutional impediments to trade between RFE and China halved, whereas those between RFE and Japan almost doubled. The findings suggest that, in terms of mitigating institutional barriers, there was a divergence between almost all RFE regions and Japan, and convergence with China and South Korea. For most RFE regions, institutional barriers with China have decreased, indicating a general convergence of the RFE economy with China. In general, China has inevitably emerged as an intermediary and an indispensable factor in the trade of RFE regions with Japan. Russian raw materials are processed in China and exported to the Japanese market. Japanese companies produce goods in China and export them to the Russian market. A similar model of economic interactions certainly exists for South Korea, but so far on a much smaller scale.
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Izotov, D.A., Tochkov, K.I. (2020). Trade Relations Between the Russian Far East and Northeast Asia: Assessment of Institutional Factors. In: Solovev, D.B., Savaley, V.V., Bekker, A.T., Petukhov, V.I. (eds) Proceeding of the International Science and Technology Conference "FarEastСon 2019". Smart Innovation, Systems and Technologies, vol 172. Springer, Singapore. https://doi.org/10.1007/978-981-15-2244-4_15
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