Research On The Trade Potential Of China And The Indo-China Peninsula Economic Corridor

The construction of "One Belt One Road" is an important strategic decision of Chinese opening-up and has great historical and practical significance.China-Indochina peninsula economic corridor is one of the six corridors which is the construction of the "One Belt One Road" strategy.The core and essence of "China-Indochina peninsula economic corridor" are the regional cooperation strategy of the new era,providing new ways to expand economic and trade cooperation space between China and Indochina peninsula,and it will further deepen maritime cooperation and exchanges with Indochina peninsula and open a new historical era between Chinese and Indochina peninsula.In this paper,the object is the trade between China and Indochina peninsula,and using method of theoretical and empirical analysis,researching the influence of "China-Indochina peninsula economic corridor" on trade potential between China and Indochina peninsula.Firstly,it is defined the concept of "China-Indochina peninsula economic corridor",the trade potential and trade efficiency,then reviewing five aspects as follows: "One Belt One Road","China-Indochina peninsula economic corridor",trade potential,stochastic frontier gravity model and its application five angles were reviewed,which lay a theoretical foundation for the whole paper,then discussing mechanism of the effect of "China-Indochina peninsula economic corridor" on China-Indochina peninsula trade potential:Infrastructure construction will improve trade efficiency according to the SPE model;the Silk Road Fund will expand trade cooperation according to the investment trade creation effect.According to SPE model and the trade creation effect,in the construction of "China-Indochina peninsula economic corridor",infrastructure construction will improve trade efficiency,the Silk Road Fund will expand trade cooperation,studying the influence in the construction of Indochina peninsula economic corridor for the trade potential of "China-Indochina peninsula economic corridor" in theoretical level,making foundation for the lasting empirical research.Then explore the influencing factors of China and Indochina trade potential from the theoretical level,mainly include the economic development level,shipping distance,the establishment of ChinaASEAN free trade area and create upgrade for China-ASEAN free trade area,maritime trade and economic cooperation,etc.On this basis,this paper reaches current status,potential and main factor of China-Indochina peninsula trade.China and Indochina peninsula have great trade potential: the volume of trade maintained rapid growth;economic and trade cooperation is complementary to each other;and there is a huge potential in trade and investment.Basedon the stochastic frontier analysis,this paper uses the stochastic frontier analysis method to analyze the panel data of the seven countries in the Indo-China Peninsula in 2006-2015.By establishing the stochastic frontier gravity model and the trade inefficiency model,this paper analyzes the trade potential of China and the economic corridor countries(1)The stochastic frontier analysis method is suitable for the study of the potential of bilateral trade potential;(2)The trade inefficiency term is time-varying;(3)The trade-offs are characterized by the fact that the trade-(4)bilateral trade is in an inefficient state,bilateral trade has a lot of room for improvement;(5)the impact of trade inefficiency on bilateral issues.Finally,it proposes suggestions on exploring China-Indochina peninsula trade potential based on the theoretical and empirical analysis.