Study On The Economic Effects Of China-Myanmar Economic Corridor Connectivity

In such a context including the China-Asean connectivity, CAFTA upgrades, GMS and BCIM Economic Corridor, it has important theoretical significance, practical significance and strategic significance to research the economic effects of economic corridor connectivity between China and Myanmar. Studying China-Myanmar economic corridor is not only a combination of International Trade Theory,New Economic Geography,the Regional Economic Integration Theory and other theories, but also helps to set a proper place in CAFTA. Besides, the construction of China-Myanmar economic corridor stimulates the development of BCIM economic corridor.What’s more, Myanmar is an important road to help China access to the Indian Ocean with circumventing the Malacca Strait.The main research methods to study the economic effects of China-Myanmar economic corridor connectivity are literature research method,qualitative analysis method,quantitative analysis method and empirical analysis. Firstly,from the perspective of connectivity, after analyzing the status quo of infrastructure,instirutional connectivity,cultural and educational exchanges between China and Myanmar, we found the expansion of trade scale between China and Myanmar, the improvement of investment volume from China to Myanmar, the increase of cultural exchange between them and the agglomeration effect benefits the local economy. However,we also found that the building progress has been slow and only a few people using communication equipment and these problems will have a bad effect on constructing China-Myanmar Economic Corridor. What’s more, the trade scale and invest scale between two countries is small compared to CAFTA. Secondly,this paper takes the empirical analysis to prove the infrastructure’s effect to the trade,investment and tourism between China and Myanmar and found that the improvement of infrastructure and the reduction of tariff have no trade creation effect between China and Myanmar, but enlarge the scale of investment and the improvement of telecommunications promotes the development of tourism between China and Myanmar. Therefore,these two parts come to a conclusion that the development of infrastructure, institutional connectivity, cultural and educational exchanges has economic effects to the cooperation between China and Myanmar,and the empirical results show that the infrastructure connectivity plays a positive role,but the benefit isn’t so obvious,especially the construct of railway has no significant effect on trade,investment and traveler across their border for both sides.Finally,I put forward countermeasures in three contexts:the government, enterprises and associations. In other words, it is necessary to pay attention to government’s guide functions, enterprises’positive functions and associations’ promotion functions.