A Study On The Trade Relations And Development Potential Of Mengzhong - India - Burma Economic Corridor

FTA usually have two kinds of forms, one is Free Trade Zone, FTZ, refers to a country or territory set economic zone inside that the consider a preferential tax and customs supervision policy as the main means, trade liberalization, facilitation as the main purpose, the nature is a cost-effective economic environment; the second is Free Trade Agreement, FTA, refers to the free trade agreements in many countries or regions, and the nature is trade deal, which improves regional trade liberalization and facilitation. Compared with the FTA, FTZ is in accordance with national laws inside, but it is based on the establishment of an intergovernmental agreement, including agreement countries, including the economy, the same as the FTA between the two that, in order to reduce trade costs are to promote business development.BCIM economic corridor construction is not only an innovative model of international economic cooperation, but also an attempt to promote regional economic cooperation and economic integration. It is built on the consensus of four countries o and cooperate for the common interests and goals. It is a long strategic systems engineering, which promote national development and national security, strategic cooperation. It is a international economic cooperation that,relays on transportation infrastructure interoperability, forms a set of regional flow, logistics, capital flow, information flow and market as a whole, creates a win-win economy. May 2013, Chinese Premier Li Keqiang and Indian Prime Minister Manmohan Singh held talks in New Delhi depth and pragmatic, Li Keqiang, a joint initiative of Indian Prime Minister proposed construction BCIM economic corridor. 2014 Central Economic Work Conference for 2015 economic work presents five major tasks that focus on the implementation of "along the way" strategy. "Along the way" is world longest span economic corridor, radiation covers East Asia, South Asia, Central Asia, West Asia, North Africa and Europe, covering a population of 4.4 billion, one-third of the world’s total economic output. Depending on the direction, the Silk Road was divided into the northern Silk Road, Southern Silk Road and the Maritime Silk Road. New South Silk Road is an integral part of building "along the way" and a good section of public opinion. The BCIM economic corridor is the key part of the new Southern Silk Road, if BCIM economic corridor not opened, the idea of the Silk Road economic belt can not be achieved.This paper is basis on the theory of comparative advantage and regions cooperation theory, analyzing the construction of BCIM economic corridor. It analyzes the current situation and external factors of trade BCIM economic corridor, predicting potential of BCIM economic corridors by trade gravity model, drawing the conclusions. This paper is divided into the follow parts: Part I: Introduction: The study focuses on the background and significance, and the related theory, comment on the research of BCIM economic corridors;Part II: early harvest and development difficulties of BCIM economic corridor, the Early Harvest BCIM economic corridor include the interconnection and cultural exchanges: BCIM economic corridor development difficulties are elaborate from both internal and external factors, Part III: Economic Situation of BCIM economic corridor: This section has three sections, the first section the current trade situation of BCIM economic corridors, the second section analyzes BCIM trade issues from bilateral trade intensity,export strength, import intensity, the third section analyzes the trade relations between Yunnan and India, Burma and Bangladesh. Part IV BCIM economic corridor empirical analysis, we use the gravity model of trade, to trade in Bangladesh and India’s largest trading partner and the 50 countries analyzed, and estimates BCIM trade in the four countries. The fifth is to promote economic corridor BCIM policy recommendation section discusses mainly from the establishment of an intergovernmental cooperation mechanism, establish BCIM industrial park, innovative financing, to explore the potential for trade cooperation in four areas. This paper argues that, GDP, distance and whether it is a member of the Asia-Pacific Economic Cooperation impact on China and India exports large; GDP, distance and whether BCIM members a greater impact on Bangladesh exports; among the four countries there is a huge BCIM trade potential, embodied in Bangladesh exports to China, Bangladesh exports to Myanmar, Bangladesh, China for export trade, Chinese exports to India, China to Myanmar exports, India’s exports to China trade, India’s exports to Myanmar.This paper is divided into the follow parts: Part I: Introduction: The study focuses on the background and significance, and the related theory, comment on the research of BCIM economic corridors;Part II: early harvest and development difficulties of BCIM economic corridor, the Early Harvest BCIM economic corridor includes the interconnection and cultural exchanges: will be a classification; presence of BCIM economic corridors Some problems were analyzed, Part III: Economic Corridor BCIM Trade Situation and Development Potential: This section has three sections, the first section analyzes the current situation of economic corridors BCIM trade, bilateral trade intensity from the second section, the export intensity import intensity analyzes the BCIM trade issues, and the third section analyzes the trade relations between Yunnan and Bangladesh, India and Burma. Part IV BCIM economic corridor empirical analysis, we use the 50 largest trading partners of Bangladesh, India and China by trade gravity model, pointed advance BCIM economic corridor significance for and the measure. The fifth part is the book conclusions and policy recommendations, according to the results of empirical research gravity trade model, drawing the relevant policy recommendations. This paper argues that, GDP, distance and whether it is a member of the Asia-Pacific Economic Cooperation impact on China and India exports large; GDP, distance and whether BCIM members a greater impact on Bangladesh exports; among the four countries there is a huge BCIM trade potential, embodied in Bangladesh exports to China, Bangladesh exports to Myanmar, Bangladesh, China for export trade, Chinese exports to India, China to Myanmar exports, India’s exports to China trade, India’s exports to Myanmar.