Research On Sino-Indonesia Bilateral Trade Of Mechanical And Electrical And Influencing Factors

Since the 1990s,The trade of Electromechanical products occupies an important position in the bilateral trade between Sino-Indonesia.After the formal establishment of the China-ASEAN Free Trade Area in 2010,the trade value between the two countries has entered a stage of rapid growth.Therefore,the resraech on the trade of mechanical and electrical products between the two countries is of great significance.This article selects SITC Class 7 mechanical and electrical products as the research indexes.First,it measures trade competitiveness index,revealed comparative advantage index,export product similarity index,export market similarity index and trade complementarity index of mechanical and electrical products.The competition between Sino-Indonesia's trade in electromechanical products possess a certain degree.Compared with Indonesia,China's overall trade competitiveness in electromechanical products is increasing year by year and has a good development momentum,but it has not made too much breakthroughs.The complementarity between China's exports and Indonesia's imports is greater than the complementarity between China's imports and Indonesia's exports,which means that the bilateral trade cooperation in electromechanical products may further increase China's trade surplus.Secondly,the article calculates the trade specialization coefficient and the intra-industry trade index.Generally speaking,the bilateral trade between Sino-Indonesia in electromechanical products is still dominated by inter-industry trade,and the trade structure between industries is relatively stable.Finally,the article expounded the factors of Sino-Indonesia's trade in electromechanical products including economics of scale of China and Indonesia,poplutation and geographical conditions,international market of electromechanical products and institution.A combination of theoretical analysis and empirical analysis was conducted to analyze the factors affecting the trade development of China's and Indonesia's machinery and electronic products(economic size,population size,trade openness,exchange rate fluctuation index of RMB,currency reform,and regional trade organization)using the multiple linear models for regression analysis.Afterwards,it was discovered that Indonesia ' s economic aggregate,regional trade organizations,and trade liberalization play a very important role in the bilateral trade of electromechanical products.