Analysis of interregional trade for Russian Far Eastern regions based on gravity models

This study focuses on constructing gravity models of interregional trade among the subjects of the Far Eastern Federal District (FEFD). Using the constructed models, we obtain estimates of the trade elasticity with respect to the GRP of exporting and importing regions and the distance between them, and analyze the influence of additional factors, such as the structure of the partner region’s economy, its entry into the Far Eastern Federal District, access to railroad communication and to the sea. The findings reveal significantly higher trade elasticities concerning the sizes of partner regions compared to global averages, indicating that trade within the district predominantly involves a limited number of large and affluent regions. This disparity is particularly pronounced in terms of imports, contrasting with global norms. High absolute values are also observed for the trade elasticity with respect to distance, which is explained by the lack of transportation infrastructure in the regions of the Russian Far East. The study underscores the complex interplay of economic, geographical, and infrastructural factors shaping interregional trade dynamics within the Far Eastern Federal District. These insights contribute to a deeper understanding of regional trade patterns and inform strategic policy directions aimed at optimizing trade relations and enhancing economic integration within the region.