National Border, Administrative Rent and Informality: Market Entrance for Chinese Traders and Farmers

Abstract

The article focuses on the informal economy in Russia’s regions bordering with China, particularly, the informal land use by Chinese farmers, and the informal (“grey”) schemes for the delivery of agricultural products from China to Russia. These phenomena are caused by the state representatives’ use of national borders as a tool for controlling access to the markets and, consequently, as a source of administrative rent (i.e., bribes). Based on empirical fieldwork, conducted in Amur Oblast, and the theoretical concept of “power triad,” developing the public choice theory, the author discusses the conflict between power and entrepreneurs.