| Domestic demand and economies of scale to promote the development of foreign trade under the conditions of imperfect competition and increasing returns to scale, if the domestic production can't meet domestic demand, it will stimulate the domestic enterprises expand production scale and become exporters of the product, the home market effect appears. Chairman Xi Jinping put forward “one belt and one road” strategic concept in 2013, not only to promote development of China's central and western regions and to strengthen economic and trade exchanges between China and “one belt and one road” along countries, but also to provide research template for Chinese scholar's empirical study about the home market effect of between China and “one belt and one road” along countries.This article established the link of “one belt and one road” strategic and the home market effect. The article use panel data of 2005 to 2014 from trade between China and “one belt and one road” along countries and draw on the gravity model of Schumacher(2003) to check the home market effect. The results are as follow:(1)There are 4 types of commodities existing the home market effect in 10 categories from a number of SITC and there are 18 kinds of commodities existing the home market effect for 35 categories industrial manufacturing products in SITC;(2)The home market effect is new comparative advantage which different from the traditional comparative advantage and have an influence on the foreign trade between China and the “one belt and one road” along countries;(3)In order to play a positive effect of the home market effect on bilateral trade, the government take policy of both internal and external market. On one hand, the government take policy of expand domestic demand to cultivate the domestic market, on the other hand, the government take policy of continue the “one belt and one road” construction, and promote foreign trade between China and the “one belt and one road” along countries. |
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