The Factors Affecting The Development Of Sino-british Economic And Trade Relations In The New Century

The economic relation between China and UK has been keeping steady andstable since the new century came. The relation, however, seems too steady to grow asillustrated in the statistics of bilateral trade volume, value of foreign direct investment(FDI) and economic cooperation, etc. And the slow development situation appearsobvious contrasting with the same indices of Sino-US, Sino-Japan and China withother European Union members, such as France and Germany.Based on the macroeconomic and international economic theories about bilateraltrade, the model in the thesis studies how the political, economic, cultural and otherbig events influence the economic relation between China and UK. Then we turnthese events into dummy variables, adding to the original projects under theenvironment of Eviews5.0, to see their effects. According to the results of theregression, we can tell which event or type of events has the most powerful affect onthe economic relation between the two countries.With the same method, FDI and financial capital flow are analyzed in order tofind out how those dummy variables affect them. After the econometric research, weget into looking for the probable reasons why some certain factor or factors wouldlead a strike to the economic relation development while others would not. So we cancall the way of analysis a backtracking mode, which is getting the results first andthen finding out the reasons.As the results of regression show, culture influences the bilateral tradedevelopment the most. The reason lies not only in the steady situation of theinternational political and military environment, but also the special gap betweenculture and way of thoughts in China and Britain. On the contrary, financial relation iscontrolled by multiple aspects, including politics, economics and culture.