DOI: 10.32609/j.ruje.8.84097

Authors: Han-Sol Lee, Alexander M. Zobov, Ekaterina A. Degtereva

Abstract: Employing an intercountry trade force (ITF) theory, this paper investigates bilate­ral trade between South Korea and 28 economies of Central Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) based on balanced panel data for the period from 2011 to 2019. Free trade space (FTS) and gravity index (GI) turned out statistically significant and their coefficient signs are in line with the research hypothesis. Our model also confirms that bilateral trade volumes­ are highly enhanced by the quality institutions of CEE and CIS countries. The impact of their good governance becomes larger in relation to South Korea’s exports to those count­ries. A level of market openness (measured by FDI ratio and WTO membership) does not facilitate bilateral trade volumes, in general. However, WTO membership turns out to be a significant and positive factor in promoting CEE and CIS countries’ exports to South Korea. Therefore South Korea must strive to enhance the institutional quality of CEE and CIS countries to ease the process of customs clearance and the conclusion and enforcement of trade contracts, and reduce transaction costs. Liberalizing economies based on internationally acknowledged economic principles will continue to enhance CEE and CIS countries’ exports to South Korea.

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DOI: 10.32609/j.ruje.5.49346

Authors: Alicia Garcia-Herrero , Jianwei Xu

Abstract: This paper reviews China’s growing economic ties with Russia. We conclude that such ties have strengthened in terms of trade and cross border lending, but less in terms of Chinese foreign direct investment in, or portfolio flows to, Russia. Meanwhile, Europe remains Russia’s largest trading partner, lender and investor. In relation to trade, China seems to have become more of a competitor for the EU on Russia’s market when we appraise China’s increasing export share and the increasing value added of its exports and previous empirical analysis at the product level. Increasing competition between European and Chinese exports should not be surprising as there is ample evidence that China has been moving fast up the technology ladder during the past few decades. Competition over investment and lending is more limited but the situation could change rapidly with China and Russia giving clear signs of a stronger-than-ever strategic partnership.

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