Border Effect Of Sino-Russia Bilateral Trade

With the development of world trade, there are more and more conflicts between countries and their counterparts, which result in the popularity of the theoretical analysis of the bilateral trade. Many scholars not only do their research on theoretical aspect, but also apply econometric modeling methods to analyze the international trade by using trade data of these countries. The Gravity Model is one of the best among these methods. Our country is a trading power. Trade has a significant promoting effect on China's economic growth and social development. At the same time, China is a socialist country, having a long-standing political, trade history with the friendly neighbor Russia and the land border line for us is more than 4000km. With the expansion on the scale of bilateral trade, some trade frictions are inevitable. Analyzing the border effect of the two countries'bilateral trade is the main purpose of this paper. This paper will use Gravity Model to analyze the border effect of the two countries.Besides the introduction ,the dissertation is devided into five chapters:The first chapter is literature review .This chapter mainly introduces the concepts of border and border effect , the application of gravity model ,and the research of border effect based on gravity model .Then having a simple estimating on the literatures.The second chapter is the introduction of the development and restricters as well as the advantages of the trade between China and Russia .The third chapter is the method and data processing. According to the actual situation in China and Russia, the thesis sets up the best Gravity model. Data processing is introduced too in this chapter.The forth chapter is the empirical analysis which uses the eviews4.0 analyzes the panel data of trade between China's provinces, autonomous regions, municipalities and Russia of the year 2004, 2005 and 2006. The article calculates the trade development potential between China and Russia .The fifth chapter about conclusion and policy suggestion .The paper draws the following conclusion through the analysis above: There is notable border effect between China and Russia. The GDP of the two countries have a promoting effect for trade volume, whereas the distance has an impeded effect. The potential between China and Russia is considerable. Based on those , the dissertation gives the relevant proposals contraposed to the restricters .