The Analyse Of Trade Between China And Canada Use The Gravity Model

The AbstractIn today's world, it's not possible to develop economic without participate in international trade. And the history of international trade has reveals the truth that the only way to develop economic is actively participate in international division of labor and international trade. With the expansion of our trade,the dispute between China and it's trade partners were happened frequently. In this context, the research of bilateral trade was became an important issue. Many scholars, not only take qualitative analysis theoretically, but also from the empirical analysis. And the Gravity Model was performance wonderful among these researches. China and Canada have a big complementarity in economic, The trade prospect between China and Canada is glorious. However, some problems were still existed between China and Canada, for example,the non-tariff barriers used by Canada government is an important negative factor. This paper attempts to use the Gravity Model, using China's trade data with 21 important trade partners, the empirical analysis from the Angle of using panel data, this paper discusses the method of gravity model estimation trade. Estimate model in China, and the relevant trade with Canada, and data simulation results with real data are compared and analyzed. Analysis and verify the main factors of develop bilateral trade between China and Canada is the Gross Domestic Product (GDP), Language, Space Distance and Institutional Arrangement, and based on this, Give some countermeasures and Suggestions for develop the bilateral trade.