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ECONOMIC COOPERATION BETWEEN THE BORDER REGIONS OF RUSSIA'S FAR EASTERN FEDERAL DISTRICT AND NORTHEAST CHINA (DONGBEI): A CURRENT MODEL AND DEVELOPMENT PROSPECTS
Shengxian Cui (Peoples' Friendship University of Russia), Elena G. Popkova (Peoples' Friendship University of Russia), Juliana Anatolyevna Kitsai
Résumé : This article presents a current model and a scientific study of the prospects for economic progress in the border regions of Russia's Far Eastern Federal District through the development of economic cooperation between them and Northeast China (Dongbei). The author's model is unique in that it reflects an innovative micro-level view of foreign trade interaction between Russia and China, from the perspective of the Russian border regions of the Far Eastern Federal District. It also mathematically expresses the patterns of change in the economic well-being of these regions as their mutual trade expands. The model substantiates that the benefits of developing mutual trade for the economic progress of the Russian Far East include attracting additional revenue to regional budgets through tax and customs duties, increasing employment through the creation of additional jobs at regional enterprises, and accelerating economic growth due to increased business activity. The model also specifies the conditions upon which these benefits depend: increasing exports and limiting imports. Practical recommendations are provided for more fully unlocking the economic potential of the border regions of Russia's Far Eastern Federal District. These recommendations include regulatory incentives for import substitution of goods imported from China and support for the activities of export-oriented Far Eastern enterprises cooperating with counterparties from Northeast China (Dongbei). Specifically, a threefold (up to 15% per year) acceleration in the annual growth rate of Russia's merchandise exports to China is proposed, which will enable the implementation of an optimistic scenario for further progress in the foreign trade partnership between the two countries. The practical benefit of these proposals is that their implementation will ensure increased growth in regional budget revenues, working-age employment, and economic growth in the border regions of Russia's Far Eastern Federal District in 2026-2027.