Research On The Development Strategy Of Vladivostok Free Port In The Context Of The Belt And Road Initiative

Providing sustainable economic development of a country and ensuring the welfare of its people is the main aim of any government.Achieving that depends on two major tasks: economic growth within the country and its international economic performance(performance on the global market).The second task refers to international cooperation principles such as international division of labor and international collaboration are fulfilled in various forms: granting of foreign trade preferences in particular territories(free ports),forming specific areas for accelerated development of certain national economic sectors(free trade zones),unification or territories into a single customs territory(custom unions)or a common economic area(economic unions).However,regardless of the legal status,the main goal is to ensure rapid economic growth.This paper researches prospects for the integration of the Russian project “Free Port of Vladivostok” and the Chinese Belt and Road Initiative.Using a corresponding theoretical framework,this paper examines the theoretical foundation,formation,and functioning of free trade zones,free ports,and international economic integration processes.This paper also introduces “Free Port of Vladivostok” as well as conducts SWOT and PEST analyses of the given port.The inferences drawn highlight the relevance and importance of further development of the Vladivostok Free Port project through its integration with the Belt and Road.The study on prospects of two projects merging along with practical recommendations regarding its realization are examined in Chapter 4.The analysis revealed that such merging should occur through common utilization of a transport logistics hub located on the south of Primorsky Krai(Trinity Bay Sea Port)as Russian-Chinese joint venture.As a result,the strategic advantage gained by the Chinese party is receiving the shortest access to the port for the export and import of supplies from Heilongjiang and Jilin provinces,thus increasing Chinese economic efficiency through reducing shipping time and distance to the port of shipment.It also would reduce railroad and highway traffic congestion within the country.In turn,the Russian party will receive additional cargo base as a source of extra income and development for the enterprise.Chapter 4 provides key stages of this process implementation strategy.The results of the research are shown in Conclusion.