Border Trade And Economic Development

Frontier trade is not only the special form of the economic and trade among the abut countries' frontier regions, but also the important component part of the country's foreign trade. China is vast in territory with 28,000 kilometers long landlocked boundary line and bordering on with fifteen countries, which makes it have the advantaged geo-condition to develop frontier trade. China and Russia (the Soviet Union) are both the great nations, also the biggest neighbor to each other. It has great potential to develop frontier trade because of the difference of natural resources and economical structure between them. However, these two countries' planned economical system, especially the raise and fall of their political relation, had hold up the development of frontier trade before 1978. Accompanying with the relation between them relaxed, frontier trade has returned to normal and developed since 1980s. The frontier trade between Russia and China has developed rapidly with continually enlarging scale especially since 1990s, which is more and more important in their economic and trade. It has infinite promoted the frontier regions' economic and society developing.Firstly, this dissertation briefly reviews and analyses the general frontier-trade situation between China and the Soviet Union from the foundation of People's Republic of China to the end of 1980s. The development of these two countries' frontier trade in these forty years, as same as the relation between them, experienced dramatic changes. There are two main characteristics in these two countries' economic and trade relation. The first is that the national scale trade gave priority to regional frontier trade. Secondly, regional trade carried on according to directive plan, which had sufficiently exerted these two countries' administrant and adjustive function but it had totally eliminated the function of market mechanism, so it restrained the initiative of their regional operators and producers and develop slowly.This dissertation stress on analyzing the developing statute of frontier trade in the region of North-east China and Far-east and Siberian of Russian and demonstrating its driving effect on frontier regional economy developing in early 1990s. It firstly figures out the policy-factor what made frontier trade declination in 1994 and 1995, then analyzes other subjective and objective cause. First of all, destroying credit-standing exploitation during the great progress time and low-grade production into Russian market made very abominable influence which not only let Chinese merchandise lose almost all credit standing but also largely damaged the figures of Chinese corporations and foreign traders. Secondly, in Russia economic crisis aggravated, inflation became severity, the market circumstance increasingly worsened, political situation was turbulence and policy and code was short of stability. Thirdly, there are some problems between these two countries, such as bank settlement and trade arbitration mechanism, trade method and credit insurance etc., which have last for a long time.The frontier trade between China and Russia has made a great progress since 1996. This progress is based on the mutually complementary in the regional different industry and merchandise frameworks, also by flexible trade methods. But if those problems discussed above can't resolve, the normal trade between these two countries will be difficult to make a greatprogress. So under this position, traveling purchase-and-sale trade becomes the new rising point of frontier trade. In this dissertation, it particularly discussed the history of traveling purchase-and-sale trade and it's function and status in the course of these two countries' frontier trade.The development of frontier trade gives a great advance in frontier regions economy, which not only mokes this area break away from poverty but also brought national economy into speedy rising orbit. And it also drives the inner and frontier provinces' economy and society progress. This dissertation demonstrat...