Influence Of Economic Sanctions On Russia-China's Trade And Investment Inflow Research

Russia and China have a very long history of economic and government partnership.But the most important period of these relations was started in 2008.That year during the official meeting,leaders of two countries accepted new strategy of their long-standing cooperation.Started from 2008 year,Russia and China developed and expanded trade,investment and government cooperation.But in 2014 Russia-China's relations met some new world economy conditions.Because of Ukrainian crisis,European countries,the USA and Japan refused that fact that Crimea became a part of Russia,so these countries accepted economic sanctions against Russian imports and investment projects.In this new economic situation,Russian economy entered crisis period and Russia-China's relations were also affected.The research of this topic is changes of Russia-China's trade and investment relations.Also including new economics situation like embargo of Russian import,and then Russian embargo of European goods,this research analyses such factors as oil price,economic sanctions,exchange rate of ruble and some basic economy growth indicators,which could influence trade relations of Russia and China.Empirical analyses include regression analyses using gravity model,to find out which factors had the biggest influence on Russia-China's trade and investment inflow since 2008 till 2016.Empirical analyses results showed that Russian GDP per-capita and economic sanctions had more influence on Russia-China's trade flow,than others.The first reason is because sanctions decreased Russia-Europe trade,but at the same time helped to expand market for China.The second reason,GDP per-capita,as GDP itself,they both reflect the growth of countries' economy and trade flow changes.What is more,investment flow statistic research results demonstrate the growth tendency.Economic sanctions didn't decrease two countries investment and projects development.In the end of this paper all data and econometric analyses results are summarized.Also was made forecast of trade and investment partnership development between Russia and China.To conclude,Russia-China's trade partnership is not balanced,as China's import is much bigger than Russia's.What is more,most of Russia's export is consist of natural resources,but China's export is consist of ordinary goods and electronic.So,if Russia will develop manufacturing sector,it will help to decrease natural resources export and increase Russia's importance for China like trade partner.