Research on the Policy Support Mechanism for Constructing Russia Border Free Trade Zone

Abstract

Cooperation between China and Russia in border area is crucial. The two governments should establish a border free trade zone at an early date. Relevant policies must be adjusted for build the Russia border free trade zone, and the support of fiscal and taxation policies is particularly important. Considering the realistic feasibility factors, the feasibility and obstacles of the construction of the Russia border free trade zone all exist, but the feasibility is more than the obstacles. This article is based on this; explore the dynamic mechanism for building policy support for the Russia border free trade zone. The internal power and the external power promote each other and influence each other to promote the development of Russia border trade, and use the analytic hierarchy process to test the factors affecting the construction of the Russia border free trade zone policy support mechanism. The Construction of the China-Russia Border Free Trade Zone Policy Support Dynamic Mechanism External Dynamic MechanismThe external driving force for its development is mainly composed of external powers such as policy support, bilateral trade demand between China and Russia, and resource endowment factors. Policy SupportThe support for the establishment of the Russia border free trade zone policy is inseparable from the government direction, and the cooperation of relevant departments, it also involves the behavior of both the government and the enterprise, which requires mutual participation and cooperation. Bilateral Trade DemandDemand effectively drives supply. Market demand is a key external factor driving the development of Russia bilateral industries and enterprises. Without demand, the development of Russia border trade will be slow or even stagnant. Resource Endowment ElementsResource endowment, also known as factor endowment, refers to a country's various factors of production, including labor, capital, land and other aspects. Labor and land resources are key factors in promoting economic and industrial development. The Chinese side has abundant labor resources, and Russia has vast land resources, and the two sides complement each other. Intrinsic Dynamic MechanismThe internal driving force for the development of Russia border trade mainly comes from the internal development of the industry. With the support of the policy, the forces formed by the internal spontaneous development promote its development. The internal driving force of Russia border trade development mainly includes enterprise factors and economic interests.