The Impact Of APEC On China’s Export Trade Binary Marginal Growth

With the continuous development of regional international organizations,regionalization and globalization of the world economy has become its new distinctive feature.In recent years,trade between China and APEC member countries has been growing rapidly,growing faster than the average growth rate of China’s foreign trade.The binary margin of trade growth is a tool for structural decomposition of trade flows.Therefore,by analyzing the structure,mechanism and influencing factors of the export margin of China’s export trade,this paper aims to understand the nature of trade growth,analyze the mechanism that APEC is conducive to the growth of China’s export trade,and provide the basis for the formulation of trade policy.First,the article combs the research results at home and abroad,analyzes the definition of trade binary margin,the economic effect and the influence of regional economic organization on the trade binary margin,deduces the mechanism of trade cost and binary marginal action,and refers to the application of gravitational model in previous literature.It is pointed out that the impact of different regional economic organizations on the binary margin of trade is uncertain,and the reduction of trade costs usually has a greater impact on the extensive margin.Based on the above analysis,firstly,this paper uses the analysis of Hillberry&Hummels(2008)and Bernard et al.(2007)to decompose the bilateral export volume into two dimensions of the product quantity and the unit product value,and construct the theoretical model based on the Pareto distribution hypothesis and the interior equilibrium hypothesis,then perform a comparative static analysis on the binary margin from the perspective of trade costs.It is found that both fixed and variable costs will increase the margin of trade.However,due to the existence of alternative effects,the reduction in fixed costs will increase the intensive margin of trade only in the hypothesis of the Pareto distribution and the assumption of interior equilibrium.While the variable cost has no effect on the intensive margin of trade in the premise of the Pareto distribution hypothesis.Secondly,combined with the concept of binary marginal proposed by Feenstra-Kee(2008),the traditional gravitational model is introduced into the measurement of extensive margin and intensive margin,this paper uses the HS6 bit coded bilateral trade data to measure the influence of APEC member relations on the binary marginality of China’s export products and measure the effect of APEC on China’s trade growth binary margin.The results show that APEC has increased the extensive margin of China’s export by 26%and 18%of China’s export trade intensive margin.Therefore,it can be found that APEC has a significant impact on China’s new product exports,as well as export volume of original trade products.According to the empirical results,the article put forward the policy recommendations.For export enterprises,they should make reasonable choices of trade partners and reduce trade costs,correctly guide the direction of the flow of production factors.As for policy makers,facilitating the communication between China and the other APEC members,developing trade policies from the regional level,and focusing on strengthening the broadening of products of new export enterprises can further optimize China’s terms of trade.