Research On The Regional Economic Cooperation Between China And Mongolia

Since the financial crisis of 2008, the global economic cooperation framework such as WTO have weakened, however the regional economic integration has being accelerated,developing a new round of regional economic cooperation. In this context, the world countries objectively recognized the inner needs of regional economic cooperation, and different forms of cooperation have been adopted, seeking maximize interests of the country and even the region.It has become a necessary strategic choice to deepen and strengthen regional economic cooperation furtherly for both China and Mongolia. Either the convulsion of the world economic and international political situation or the practical needs of the economic development between China and Mongolia proposed practical and urgent requirements to the regional economic cooperation development of China and Mongolia.After 30 years of reform and opening up, China has made great achievements in the world.Even so there are still many shotcuts such as slow industrial structure upgrading and technology progress, backwarded economic growth mode, serious population aging phenomenon, economic growth deceleration, excess capacity, significant decline of real estate economy and traditional industries. Mongolia is rich in natural resources, promoting economic growth by consumption and mineral industry,once achieved rapid economic growth,however the single industrial structure,the stagnation of the industrial technology system evolution, the lack of human resources lead to increasingly prominent problems such as excessive foreign trade dependence, serious inflation, high unemployment and so forth. Therefore, under such circumstances, China and Mongolia should make good use of the eographical advantages of neighberhood, enhance mutual trust, strengthen regional economic cooperation of the two countries, maintain the unity of their respective countries and maintain the balance of international power, work together to create mutual political trust, economic integration, cultural tolerance of the interests of the community. This is not only an effective way to solve the current domestic economic problems of the two countries but also an inevitable choice to deal with the of international political relations.Therefore, this paper takes China and Mongolia regional economic cooperation as the main line, exploring a new ways of regional economic cooperation of the two countries to promote the industrial structure upgrading and the sustainable economic growth, having important practical significance. At the same time, Mongolia is the main part of Chinese “The Belt and Road”strategy carried out westward and northward.To strengthen regional economic cooperation between Mongolia not only can promote the cooperation between the two countries and enhance the level but also can achieve their long-term national unity and social stability and common development. Therefore, the study has a sort of practical significance to the implementation of “The Belt and Road” strategy. The contents of this paper are as follows:Chapter one is introduction part.The research background and research value are mainly introduced, the studies ofdomestic and foreign scholars on the regional economic cooperation and the economic and trade cooperation are summarized and on this basis, the research methods and technical route are desighed in this chapter..Chapter two is the theoritical part, The related concept of region, regional economic cooperation and China Mongolia regional economic cooperation were mainly redefined in this chapter. At the same time, the related theories of regional economic cooperation were reviewed which proveded a stable academic foundation to the China Mongolia regional economic factors analysis in the later chapters.Chapter Three, the history and current situation of the regional economic cooperation of China and Mongolia were mainly analyzed from a historical perspective and the spatial features and regional features of China Mogolia long-term regional economic cooperation areanalyzed on the basia of spatial economics. Studies have shown that the regional economic cooperation of China and Mongolia went through start-up stage, stagnation stage, recovery stage before entered further development stage.The bilateral trade and investment cooperation is the main line in the whole process of regional economic cooperation. the amount of trade and investment increase year by year and regional economic cooperation has achieved good achievements. Especially since 1999, 1998 China has been the largest trading partner of Mongolia, and subsequently became the largest investor in Mongolia. At the same time, bilateral cooperation in the fields of politics, economy, trade, culture, environmental protection etc.move to the steady and rapid development stage. From a long-term point of view, the overall situation of regional economic cooperation between two countries is good, but the slow development and low level of regional economic cooperation still remains significant.Chapter four,The influencing factors of China Mongolia regional economic cooperation and development from the perspective of multi-subject and multi-field such as regional economics, international political science, sociology, spatial economics and institutional economics etc. We believe that regional economic cooperation between the two countries is affected not only by the economic factors but also by the international environmental factors, policy factors, spatial factors, social and cultural factors. From the macro-point of view, The decline of the world economy, the evolution of the industrial revolution, the economic regionalization, Strategic change in developed countries, adjustment of China’s opening up strategy,the policy repeatability of Mongolia, the imperfect regional governance system and the poor regional economic integration; From the microscopic point of view, their history, culture, population structure, urbanization, economic development, mutual foreign trade dependence degree, structure complementary, technology transfer, market potential, spatial distribution of resource, distribution of industrial agglomeration area and transportation infrastructure construction and so forth.Chapter Five, the empirical analysis on the influencing factors on China and Mongolia regional economic cooperation was carried on by means of mainly SPSS 17.0 software eviews6.0 statistical analysis software. The results of the empirical analysis shows that the bilateral trade scale is positively correlated with the economies of scale, the level of economic development, the energy consumption of export trade and the import trade, under the significant level of 0.01. And It is positively corelated with the degree of opening-up, the level of urbanization significant under the significant level of 0.05. And there is a moderate positive correlation between the bilateral trade scale and population size factor. At the same time, drawing lessons from previous research results,not only China- Mongolia Trade Gravity model but also a further analysis of affecting degree of main influencing factors was made in this paper. The results show that while some factors have a positive effect on the regional economic cooperation, some plays a negative effect.Chapter sixth further discusses the prospective and economic effects of the regional economic cooperation between the two countries,based on the research of the previous chapters. Through the empirical analysis we know that there are strong perspective and complementary of intensifying regional economic cooperation between the two countries, especially Especially Mongolia’s trade dependence on China is increasing day by day and the bilateral trade has a significant effect on Mongolia’s economic growth.In Chapter 7, according to the results of research in previous chapters, the problems and the development trend of intensified regional economic cooperation between Mongolia and China are illustrated furtherly, and some countermeasures and suggestions for the objective practical problem are put forward. We believe that the following measures should be taken to strengthen regional economic cooperation between Mongolia and China. Firstly, both sides should strengthen the government leading role, and the government’s driving force; Secondly, improve the cooperative mechanism and framework, give full play to each main role; Thirdly, accelerate the construction of Railways and other infrastructure, deepen cooperation in transportation logistics system of China, Mongolia and Russia; Fourthly,deepen cooperation in key industries, accelerate the establishment of domestic and foreign industry Linkage Mechanism.; fifthly, build the free trade zone, promote trade and investment facilitation; sixthly, deepen financial cooperation, increase the scale and scope of border settlement; Seventhly, to strengthen bilateral political and cultural exchanges, work together to build political trust and bilateral relations; Eighthly, the establishment of "The Belt and Road" partnership, fully expand bilateral trade economic exchanges. To sum up, Despite the regional economic cooperation between China and Mongolia is slow at present and do not have the conditions to establish a free trade zone yet. But the establishment of the China Mongolia free trade agreement is the best strategy to strengthen regional economic cooperation. In addition, “The Belt and Road”constructive strategy proposed by Senior Chinese did provided opportunities and new environment for further regional economic cooperation between China and Mongolia. At the same time, Mongolia is the main part of Chinese “The Belt and Road"”strategy carried out westward and northward, the cooperation level between the two countries not only can be promoted through intensifying regional economic cooperation, but also do goog to achieve their long-term national unity and social stability and common development. Therefore, this research has a certain practical significance to the implementation of the “The Belt and Road” strategy.