Study On The Factors Of China’s Agricultural Products Trade Flow Effects Based On The Gravity Model

Economic size and distance of Trade countries has the respectively effect ofpromoting and inhibiting effect on bilateral trade flows of agricultural products.Generally, economy size is one of the decisive factors of comparative advantagewithin a country, It decides the importing country’s potential demand and exportpotential supply ability which are the main factors that influence the bilateral tradeflow, when a country’s economic scale is larger, its imports of agricultural productsdemand and supply capacity is greater. The distance variable is used to represent allthe important factors hindering the bilateral trade smoothly, the trade friction,bilateral trade between the distance, not only refers to trade in both geographicaldistance caused by transportation costs, but also due to long distance access toinformation and communication cost, also the reaction of some difficult to quantifymeasure of trade barriers cultural differences, consumer preferences, trade betweencountries farther away, it usually means all kinds of trade cost.When the distance isfarther, it will be more disadvantageous to the bilateral trade flows of agriculturalproducts. The analysis of trade gravity model shows that a country’s agriculturalproducts trade flow and trade country economies of scale are positivly related, and thedistance between the two parties are negatively related. This articls use ChinaAgricultural products trade data from2002to2011with30countries, by the stepwiseaddition of cultivated land area, population, exchange rate control factors,construction of China’s agricultural products trade flow gravity model, found that thesize of the Chinese economy, arable land area of foreign and total populationsignificantly has positive correlation with China’s agricultural products trade flow,and the distance between the two sides is significant negative correlation, and theChinese land area and population and the RMB exchange rate is positive correlationbut not significant. This, Combined with the analysis of the influence of the status quoof China’s agricultural trade and China’s agricultural products trade factors theory, putforward to improve the international competitiveness of Chinese agricultural products,reduce the trade deficit, countermeasures and suggestions for promoting the furtherdevelopment of China’s agricultural products trade.