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This book analyzes the evolution of foreign trade cooperation between Russia and China in the context of the rapidly growing global economy, especially in the Asian-Pacific region. The approach presented in the book is characterized by a comprehensive view on macroeconomic dynamics and the process of evolving means of production. The authors describe characteristics of national innovational economies with examples from countries in the Asian-Pacific region.



Chapter 1. Introduction

Economic growth and the mechanisms of its management are among the most important problems of economic theory. The significance and importance of these issues in modern economic research is confirmed by the high frequency with which the Nobel Prize is awarded to those researchers who study particular aspects of them. Among the most significant works are those by Kuznets (1971), Schultz and Lewis (1979), Solow (1987) and other Nobel Prize winners. In Russian economic tradition, the study of the problems of economic growth was largely influenced by Marxist theory, with its ideas about the evolution of means of production and forms of economic relations in society. In economic science in Russia today, there is also a special role for institutional economy, and many original concepts and theoretical approaches to the study of economic growth are offered within this context.
Elena G. Popkova, Yakov A. Sukhodolov

Chapter 2. Theoretical Aspects of Economic Growth in the Globalizing World

This chapter studies the conceptual foundations of economic growth in the globalizing world and conducts a problem analysis of “underdevelopment whirlpools” as an obstacle to economic growth. It describes the methodological foundations for the formation of a new concept of economic growth, and studies the philosophy of growth as a multi-disciplinary concept and an independent branch of the general theory of philosophy. The authors analyse the notion and sense of economic growth, determining its most important characteristics and the factors which build it, as well as determining the contradictions within economic growth and approaches to measuring it.
This chapter also determines the limits of economic growth, studies its interconnection with the notion of “economic development”, and shows how to establish economic growth rate norms—a complex task that is especially relevant today—and determines their quantitative limits. The authors study the notion of “underdevelopment whirlpools” from the point of view of institutional theory, determine the mechanisms by which an economy is sucked into an “underdevelopment whirlpool”, and how to overcome them. The authors also offer a model for calculating “underdevelopment whirlpools”, study their dynamic nature, and map them throughout the world’s developing countries.
Elena G. Popkova, Yakov A. Sukhodolov

Chapter 3. Foreign Trade as a Vector of Economic Growth in the Globalizing World

This chapter views theoretical aspects and the evolution of the establishment of international trade, as well as determining the role of foreign trade in the development of national economies under modern conditions. The authors analyse various definitions of the notion “trade”, determine the role of trade in the sectorial structure of gross domestic product (GDP), study the definitions of the notion “service”, view the main characteristics of internal trade and the structure of foreign economic activities, and determine the methods of organization of foreign trade and the most significant types of risks in foreign trade.
The authors also study the processes of globalization, the deepening of internationalization of economic life, transnationalization, the appearance of a large number of international organizations and integration associations, and the development of foreign economic relations in general and foreign economic contacts in particular. The chapter views the theory of closed and open economies, and the sense of tariff and non-tariff limitations, analyses the history of the establishment of international economic relations, and the policy of import substitution, as well as determining the main pros and cons of the model of export orientation. The authors study distinctive features of the modern global economy, study dynamics of foreign trade turnover in selected countries, dynamics of export and import, trade balance, GDP and GDP per capita, changes in export and import quotas, direct foreign investments, and the number of transnational corporations.
Elena G. Popkova, Yakov A. Sukhodolov

Chapter 4. Role and Meaning of Foreign Trade Cooperation in the Globalizing World Through the Example of Russia and China

This chapter is devoted to an evaluation of the Russian economy’s readiness for the development of foreign trade cooperation and substantiating the necessity for it between Russia and China. The authors study the dynamics of change in the sectorial structure of the Russian economy and a range of partner countries for international organizations, view the commodity structure for exports and imports in Russia, observe the level of openness in the Russian economy, determine the share of certain countries in Russian foreign trade turnover, and study the dynamics of the main indicators of Russian foreign trade, the dynamics of Russia’s international reserves, and the demographics of organizations’ ownership forms.
The authors conduct a SWOT analysis of the Russian economy in modern conditions and a general analysis of foreign trade turnover in Russia, determining the leading commodity group in the country’s exports and imports. This chapter also views Russian foreign trade with its main trading partners, observes the comparative characteristics of Russian commodity turnover with the Commonwealth of Independent States (CIS) and non-CIS countries for the leading commodity groups, performs an analysis of the situation in the external sphere, and examines Russian national interests and priorities, the level of development of foreign economic institutes, and the country’s position in the national economy in the context of the “Turn to the East” strategy. The authors prove the necessity for activation of cooperation with developing Asian countries—primarily with China.
Elena G. Popkova, Yakov A. Sukhodolov

Chapter 5. Perspectives of Acceleration of the Rates of Economic Growth of Russia in the Context of Foreign Trade Cooperation with China

This chapter determines the main directions for the modernization of the Russian economy in view of the Asian factor in developing foreign trade connections for the country, and offers measures of state regulation and support for the fulfilment of Russian economic interests in foreign trade cooperation with China. The authors view the key tendencies of the development of the global economy in the twenty-first century and the 2008 crisis, study the index of global competitiveness of the World Economic Forum and its main components for Russia and China, and determine a range of obvious problems for development of the Russian economy and an increase in the level of its national competitiveness.
The authors offer suggestions for the direction that Russian foreign trade could take, including the development of cluster policy according to the “Concept of long-term socio-economic development of the Russian Federation until 2020” and the “Strategy of innovational development of the Russian Federation until 2020”. The authors determine potential threats that may arise owing to increasing cooperation with China and develop measures of state regulation and support for the accomplishment of Russian economic interests as foreign trade cooperation with China increases.
Elena G. Popkova, Yakov A. Sukhodolov


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