A Study On The Effect Of Institutional Quality On The Trade Of Intermediate Products Between China And The Countries Along The Silk Road Economic Belt

The trade in intermediate products plays an important role in promoting China's leading regional value chain and deepening the specialization under Global Value Chains along the Silk Road economic belt.The improvement of the institutional quality in countries along the Silk Road economic belt is an accelerator to deepen the specialization under Global Value Chains between China and the countries along the Silk Road economic belt,which use intermediate product trade as the main content.This paper first analyzes the current situation of intermediate product trade between China and the Silk Road economic belt and the institutional quality along the Silk Road economic belt.The relations of the trade of intermediate products between China and the Silk Road economic belt are increasingly close.The trade scale of the intermediate products is expanding continuously,and the import scale is larger than the export scale.The export growth rate is significantly higher than the import growth rate.The intermediate products exported by China along the Silk Road economic belt are mainly made of artificial graphite and activated carbon in semi-finished products,while the proportion of the parts with high technical content is rising.China's absolute share of resource semi-finished products imported from countries along the Silk Road Economic Belt,and imports of very few spare parts.The quality of economic institution in various countries along the Silk Road economic belt is good and the quality of political and legal institution in countries along the Silk Road economic belt differs greatly.The countries in the extended region attach more importance to the quality of political and legal systems than the core countries.This paper then discusses the mechanism of the institutional quality of the Silk Road economic belt on the intermediate products trade between China and its from the perspectives of transaction costs and incomplete contracts.Improvements in economic,political,legal institutional arrangements along the Silk Road economic belt will help reduce the transaction costs of intermediate products between China and these countries and promote the flow of bilateral intermediate products.The improvement of the institutional quality of the destination country will reduce the degree of incomplete contracts,which will help improve the efficiency of the execution of contracts between exporters and distributors,and enhance the continuity of the cooperation,thus facilitating the flow of intermediate products trade.Finally,this paper takes the trade flow of intermediate products between China and the Silk Road economic belt as an explanatory variable.The institutional quality of the Silk Road economic belt is measured by the principal component method as the core variable,and the control variable is introduced to establish an empirical model to study the influence of the institutional quality of the Silk Road economic belt on the intermediate products trade between China and its.The empirical results show that the improvement of the institutional quality of the Silk Road economic belt can significantly promote the bilateral trade of intermediate products between China and the Silk Road economic belt.The improvement of the institutional quality in the countries of core region has a greater effect on the promotion of intermediate products trade than in the countries of the extended region.Among the institutional quality of the Silk Road economic belt,the improvement of the quality of the political institution is the largest among the economic,political,legal institution in promoting the trade in intermediate products between China and the Silk Road economic belt.