Research on Trade Effect to Establish Sino-Russian Free Trade Area (FTA) on the Basis of the Partial Equilibrium Model

Abstract

Abstract. On the background of new economic normality, the regional cooperation between China and Russia has got rapidly developed. Russia is the important country of the "one belt and one road" line, and to establish free trade area is the main propulsive forms of "one belt and one road". The paper analyzes the trade effect of setting up Sino-Russian Free Trade Area (FTA). It includes trade create effect and trade transfer effect between China and Russia in partial equilibrium analysis, SinoRussia trade intensity index calculation, for the purpose of setting up Sino-Russia FTA to governments. It can get the following conclusions: in terms of trade intensity index, Russia is more dependent on the Chinese market; Russia achieves more trade creation effect from Sino-Russian Free Trade Area than that China obtain; the compre hensive trade effect of Sino-Russian FTA is positive.