The Booming Russo-Japanese Economic Relations

Abstract

A noted Japanese economist analyzes the history, present status, and future prospects for Russo-Japanese economic relations. The author demonstrates that the boom in trade between the two countries in the 2000s is unprecedented, ending the stagnation in bilateral trade that began in the early 1980s, when the era of large-scale Siberian resource development projects came to an end. He argues that underlying the current boom is an eastward shift in the Russian economy, characterized by its energy and investment policies as well as foreign economic relations. The paper considers in detail two important factors supporting this boom: (1) Japan’s exports of automobiles to Russia; and (2) Russia’s exports of oil and gas to Japan. He concludes with a guardedly optimistic prognosis suggesting growth in the bilateral economic relations on the grounds of the continuing eastward shift of the Russian economy and a marked correspondence between the demand and supply of the two countries. Journal of Economic Literature, Classification Numbers: F140, O520, P280, Q430. 7 figures, 4 tables, 50 references.