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Russia’s trade with China has been steadily increasing over the past decade. But in recent months the economic cooperation between the two countries experienced a sudden boost that involved high-level meetings, a long-term multi-billion dollar contracts to deliver Russian gas to China, a ten-fold rise in the yuan-ruble trade on the Moscow Exchange, and the revival of a plan to build a bridge across the Amur River linking the two countries. The regions in Russia’s Far East located along the Chinese border are best placed to benefit from this intensification of cross-border ties. But are they really? In her book, Ryzhova is highly skeptical about such prospects and draws a bleak picture of Russia’s border regions where overly centralized decision making, bureaucratic rent-seeking, and informal hurdles impose trade barriers that impede economic integration with China. In fact, the author is so pessimistic that she does not see any sense in offering policy recommendations as is customary in economic studies. Restricting or eliminating informal networks that dominate cross-border trade is nearly impossible because the rent-seeking bureaucrats that design the relevant policies are themselves involved in these activities. In addition, decreasing the extent of centralization in economic decision making depends on politicians at the center who are not interested in ceding power to the regions. In the long run, Ryzhova sees no rational alternative to the full liberalization of cross-border ties

prostranstvennaâ èkonomika

Cross-Border Trade and Integration between Russia and China: An Interdisciplinary Perspective (Review of the Book by N. Ryzhova «The Economic Integration of Border Regions»)