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Trade development between China and countries along the Belt and Road: A spatial econometric analysis based on trade competitiveness and complementarity.
- Source :
- Pacific Economic Review; May2020, Vol. 25 Issue 2, p205-227, 23p, 6 Charts
- Publication Year :
- 2020
-
Abstract
- This paper empirically analyses the effect of trade competitiveness and complementarity on the trade development between China and the countries along the Belt and Road (B&R). The study first measures the trade competitiveness and the complementarity between China and the countries along the B&R by using the trade competitiveness coefficient (TCC) and the trade complementarity index (TCI). Then a spatial gravity model is constructed to analyse the effect of trade competitiveness and complementarity on trade development between China and the countries along the B&R. We use generalized method of moments (GMM) and spatial filtering technology to verify the robustness of the model. The results show that the GDP of China and the countries along the B&R, the land area of countries along the B&R, trade complementarity, common language, free trade agreements (FTA), and the B&R Initiative significantly promote the trade development between China and the countries along the B&R, whereas the geographical distance between countries and trade competitiveness significantly inhibit it. Finally, to promote the trade development between China and the countries along the B&R, the present paper puts forward suggestions including improving trade promotion policies between China and the countries along the B&R and vigorously expanding cooperation with complementary industries in the countries along the B&R to enhance trade dependence. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 1361374X
- Volume :
- 25
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Pacific Economic Review
- Publication Type :
- Academic Journal
- Accession number :
- 144299790
- Full Text :
- https://doi.org/10.1111/1468-0106.12329