Sanctions as a Catalyst for Russia’s and China’s Balance of Trade: Business Opportunity

Horák, Jakub

doi:10.3390/jrfm14010036

Cited by 3 publications

(3 citation statements)

References 70 publications

(70 reference statements)

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“…However, every crisis could be considered an opportunity [82,83]. For a long time, the Russian government attempted to create incentives for the timber industry to increase the degree of wood processing, develop the domestic market, invest in forest machinery and machine tool building and reduce the withdrawal of profits to various offshores.…”

Section: Discussionmentioning

confidence: 99%

Impact of Trade Restrictions on the Russian Forest Industry: Evidence from Siberian Timber Producers

Gordeev,

Pyzhev

2023

Forests

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In 2022, the Russian forest sector was severely affected by the government’s ban on the export of unprocessed timber and trade sanctions imposed by several countries. It is generally recognized that the regions of the Russian North-West are the most affected by trade barriers that have emerged. Against this background, the impact of bilateral trade restrictions on timber companies in the Asian part of Russia is not discussed. Nevertheless, the forest industry is an important sector of the Siberian economy that has an economic, social and environmental impact on the life of local communities. This paper analyzes the differences among Siberian timber companies in their response to the crisis depending on three factors: industrial specialization, scale of revenue and regional location. The results show that in 2022 the highest median revenues and net profits were generated by small firms that were focused on the domestic market and benefited from reduced competition due to sanctions. There is also evidence that spatial heterogeneity in the response to the crisis may be due to the different support measures of regional authorities and the proximity of the region to border points. We argue that the current conditions may become a new driver for the timber industry development, aimed at the growth of added value and expansion of domestic demand for wood products.

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Section: Discussionmentioning

confidence: 99%

Impact of Trade Restrictions on the Russian Forest Industry: Evidence from Siberian Timber Producers

Gordeev,

Pyzhev

2023

Forests

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“…It is obvious that the decrease in the intensity of Russia's economic ties with Europe, the United States, Great Britain, and Japan opens opportunities for more intensive trade with countries that have not joined the restrictions. The example of the sanctions imposed on Russia in 2014 showed that they significantly contributed to an increase in trade between Russia and China, and this trend will undoubtedly hold [63]. In addition, the analysis of overnight lighting showed that there was a decrease in business activity in Russia at the beginning of the imposition of sanctions in 2014, but subsequently the economy adapted and the impact of sanctions on business activity declined [64].…”

Section: Discussionmentioning

confidence: 99%

Social and Economic Importance of Forest Companies in Asian Russia: Evidence from Corporate Financial Reporting

Gordeev

Pyzhev

2022

Forests

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In contrast with many other sectors of the Russian economy, there is low market concentration in the forest industry and, consequently, a large number of relatively small enterprises scattered throughout the world’s largest country. In many cases, logging or woodworking companies are the only or key employers in sparsely populated areas, making them important sources of the social and economic stability of small towns and rural settlements. In 2022, Russian forest companies faced dramatic barriers to international trade, which led to the suspension of production with the risk of further layoffs. Thus, the issue of social and economic importance of the forest business in Russia has gained additional sounding. This paper aims to estimate the decline in revenues and the number of employees in forestry companies in Asian Russia because of sanctions. Based on corporate accounting reports, we have generated a dataset covering 4675 forest industry companies in Asian Russia. We use quantile regression to estimate the impact of the number of employees on revenue. All companies were divided into quartiles by revenue and into 6 groups by type of economic activity. A significant differentiation of the return on the number of employees depending on the type of activity and the volume of firms’ revenues was found. Estimates of potential losses of companies during labor force reduction were obtained, which would be 1.2%–3.6% of revenue for a company from Q1, 2.2%–6.6% of revenue for Q2 and 2.7%–8.1% of revenue for Q3. The results clearly demonstrate that forest companies might be very interested in retaining a workforce, even if an opportunistic drop in product demand creates a financial shortfall. Policy makers should take this into account when shaping instruments to support the industry.

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“…"The strict traffic control and personal isolation measures were effective in hindering the spread of COVID-19 in China" [7]. Economic sanctions are among the most powerful instruments of international policy [8].…”

Section: Introductionmentioning

confidence: 99%

Research on the development path of China’s cross-border e-commerce industry under the COVID epidemic

Kučera

Zhang

2023

SHS Web Conf.

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The COVID-19 epidemic in 2020 has swept the world, bringing great challenges to Chinese cross-border e-commerce industry, as well as opportunities for development. According to my country's economic survey in the first and second quarters of 2020, the COVID-19 epidemic has caused a sharp drop in the transaction volume of Chinese foreign trade industry, while the crossborder e-commerce industry has grown against the trend. Starting from the characteristics of Chinese cross-border e-commerce industry, this article analyzes the impact of the COVID-19 epidemic on Chinase cross-border e-commerce industry, mainly in the obstruction of logistics and the impact on the global supply chain. Taking Ali International Station as a case analysis, through the formulation of support policies for sellers, investment in digital trade and other measures to help e-commerce sellers to tide over the difficulties, and then put forward suggestions on path selection for Chinese cross-border e-commerce industry to cope with the COVID-19 epidemic.

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Sanctions as a Catalyst for Russia’s and China’s Balance of Trade: Business Opportunity

Cited by 3 publications

References 70 publications

Impact of Trade Restrictions on the Russian Forest Industry: Evidence from Siberian Timber Producers

Impact of Trade Restrictions on the Russian Forest Industry: Evidence from Siberian Timber Producers

Social and Economic Importance of Forest Companies in Asian Russia: Evidence from Corporate Financial Reporting

Research on the development path of China’s cross-border e-commerce industry under the COVID epidemic

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