Border Effect and Proximity Effect of Bilateral Trade Between China and Its Land Neighbors — Simulation Based on GTAP Mode

Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v3i3.813

Xiaoxue Zhao, Feng Xiao

Kashi University, Kashgar 844000, Xinjiang, China

Abstract

This paper is based on the study of the economic effects of the "six corridors" of China's 14 land neighbors in the "Belt and Road" initiative. A static GTAP model is used to assess the impact of stability and transport infrastructure capacity on the trade potential of China's land neighbors. The study found that the regions with higher stability as a whole have more developed imports and exports. my country's frontier growth is very likely to achieve economies of scale and industrial expansion, driven by policies that focus on improving the level of infrastructure construction.

Keywords

transportation cost, infrastructure level, trade potential, GTAP model

References

[1] Zhu Zeyan. The Influence of RMB Exchange Rate on China-ASEAN Bilateral Trade — Based on Neighboring Country Effect and Center Effect[J]. Price Monthly. 2020(07):67-73.
[2] Peter Walkenhorst, Nora Dihel. Trade Impacts of Increased Border Security Concerns[J]. The International Trade Journal, 2014:16-35.
[3] Gehlhar, M., and McDougall, R.A. 2002. Transport Margins and Modes. In Dimaranan, B.V. and McDougall, R.A. (eds.). Global Trade, Assistance, and Production: The GTAP 5 Data Base. West Lafayette, IN: Center for Global Trade Analysis, Purdue University.
[4] Werner B. F, Marc A. K. The friction-cost method[J]. Pharmaco Economics, 2005,23(2):105-111.
[5] ALIY, RASHEED Z, MUHAMMAD N, et al.Energy optimization in the wake ofChina Pakistan Economic Coridor(CPEC)[J]. Journal of Control and Decision, 2018,5(2):129-147.
[6] JAVAID U, JAVAID R. Strengthening geo-strategic bond of Pakistan and China through geo-economic configuration[J]. Pakistan Economic and Social Review, 2016,54(1):123-142.
[7] RAZAH, MOHIUDDINZA, ZAIDISSZ, et al. CPEC: Pakistan-China cordial ties-a boost to Pakistan's economy[J]. Journal of Accounting, Business and Finance Research, 2018,2(1):1-6
[8] Chen Shumei, Ni Juping. The economic effects of China's participation in the "Regional Comprehensive Economic Partnership" — an empirical analysis based on the DTAP model[J]. International Trade Issues, 2014.
[9] Li Jianjun, Sun Hui. Construction of China-Pakistan Economic Corridor under the Background of “One Belt, One Road”: Realistic Foundation and Path Selection[J]. Journal of Xinjiang University (Philosophy, Humanities and Social Sciences Edition), 2017,45(01):1-9 .
[10] Wang Fei, Chen Ruihua. Research on the optimization of logistics network structure in the central nodes of the "Belt and Road" Initiative[J]. Journal of Kashgar University, 2020,41(05):28-33
[11] Chen Jiyong, Yang Xudan. Trade Competitiveness, Complementarity and Trade Potential — Based on the analysis of statistical data of countries along the “Belt and Road” and the United States, Canada and Mexico[J]. Journal of Wuhan University (Philosophy and Social Sciences Edition), 2019,72(06):99-115.
[12] Chen Jiyong, Yang Xudan. Trade Competitiveness, Complementarity and Trade Potential — Analysis Based on the Statistical Data of Countries along the “Belt and Road” and the United States, Canada and Mexico[J]. Journal of Wuhan University (Philosophy and Social Sciences Edition), 2019,72 (06):99-115.
[13] Ding Shihao, He Shuquan. Analysis of China's Export Efficiency and Influencing Factors of Agricultural Products to Five Central Asian Countries[J]. International Business (Journal of University of International Business and Economics), 2019(05):13-24.
[14] Gao Zhigang, Tian Feng. Research on the impact of trade facilitation level on China-Pakistan export trade efficiency under the background of China-Pakistan Economic Corridor[J]. South Asia Research, 2019(02):136-156+160.
[15] Shen Minghui, Guo Mingying. "Regional Comprehensive Economic Partnership Agreement" under Great Changes: Features, Impact and Opportunities[J]. Contemporary World, 2021(1):44-51.

Copyright © 2022 Xiaoxue Zhao, Feng Xiao

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License