Research On The Construction Of China Laotai Economic Corridor Based On Trade Perspective

The Greater Mekong Subregion(GMS)Economic Cooperation Mechanism which initiated by Asian Development Bank in 2002 and the foundation of China-ASEAN Free Trade Area(CAFTA)in 2010,are milestones that improving the Asian economically integrated.There are currently two ways for China to trade with the Middle East,Europe and South Asia.One is the Silk Road on the land,and another is the Silk Road on the sea.For now,if we choose the Silk Road on the sea as our international trade routines,we have to set out from a port in the southeast area of China,sail on the South China Sea and pass through the Strait of Malacca to get into the Indian Ocean.The China-Laos-Thailand Economic Corridor(CLTEC),under the framework of the Greater Mekong Sub Region,once being constructed,could be connected with the East-West Economic Corridor(EWEC).Through the Kunming-Bangkok highway of the CLTEC and the EWEC,the cost of trade between China and the Middle East,Europe or South Asia could be remarkably reduced.Thus,not only can it fuel the economic growth of the South-West region in China and the Indo-China Peninsula,but it can also help us to break through the blockade caused by the Strait of Malacca when it comes to a war.So,considering the background of Regional economical integration,the strategy of the Belt and Road,and enforcing the diplomacy with our neighborhood countries,it is benefiting and useful to carding and analyzing the development status and questions that still exist during construction about CLTEC under the framework of GMS.Basing on the conclusions,some useful suggestions can be raised.Basing on the background of "Three horizontal and two vertical",totally five economic corridors which promoted by Asian development bank in GMS region,we selected the CLTEC which is one of the vertical economic corridors as the researching objective.Emphasizing on the view of trade point,this paper consists of four parts,which involved almost every aspects,to analyze the construction of the CLTEC,from surfacing phenomenon to the deep reason and from qualitative to quantitative.First of all,through reading a lot of related papers which published by domestic and foreign researchers,we set up the preliminary researching method:first step,use the relevant theory of international economic corridor to analyze the CLTEC qualitatively and quantitatively,then emphasizing on the view of trade point,use the Trade Gravity Model to set up a model with the variables related to the construction of economic corridor and analyzing the results.Secondly,utilizing Location Theory,Point-axle Development Theory and Hierarchical Succession Theory of Industrial Structure in field of international corridor,including natural location,geographical location and traffic location to analyze the compound location condition,available development model,the evolution of the industrial structure,the development level of economy,industrialization stage of relative countries or regions and the trade condition among the countries.According to the real situation,problems of the construction of CLTEC have also been discussed.Thirdly,based upon the traditional trade gravity model,we choose the trade flow of the related countries or regions as the dependent variable,while the economic scale,popularity,distance,whether they are adjacent and the proportion of the non-agriculture as the independent variables,to establish Econometric model to implement empirical analysis.The results showed that the economic scale,popularity,boundary advantage and the complementary between two countries or regions had a positive effect on trade flow,while the distance had a negative effect.Finally,synthesizing the theoretical analysis and empirical analysis of the paper,and taking the real situation into consideration,we have given some policy suggestions about the CLTEC’s construction.