Regional Economic Cooperation Mode And Effect Under One Belt One Road Strategy

With the profound change of domestic and international situation, China established " The Belt And Road" initiative in 2013, including "The Silk Road Economic Belt" and "The 21st Century Maritime Silk Road "initiatives, offering great opportunities for China and countries along the route." The Belt And Road " involves numerous countries and the way of cooperation is complex. Although we have a strategic blueprint, however, as for specific details, we don’t have a detailed plan. This artical is intend to answer questions like:How to carry out regional cooperation under this initiative? What benefits can we get from establishing this project? How to develop the FTA between China and countries along the route?Based on economic and political situation at home and abroad, this artical proposed four cooperation mode applied to " The Belt And Road" initiative:Double-Multilateral Preferential Economic Cooperation Mode, Multidimensional Economic Cooperation Mode, Strategic Stronghold Breakthrough Cooperation Mode and Fully Available Of Partners Along The Route. In addition, this artical uses GTAP tools, making simulation analysis according to three different kinds of trade policies to reveal the outcome that how much benefit we can get from economic and industrial perspective, who will be our first FTA partner under this initiative.The study found that the implementation of trade liberalization will bring China and countries along the route positive incentives. As for countries don’t take part in this strategy, it will bring them negative effects. From a macro perspective, to advocate and promote this strategy, China will get positive effect. From the industry perspective, China will develop labor-intensive industries by reducing tariffs. However, capital and technology intensive industry will suffer. As for FTA strategy choice, the next step is to make negotiations with India, Russia and Iran through simulation experiment of GTAP.