Bilateral Trade Costs Between China And The Countries Along The Belt And Road

In recent years,with the China leader put forward the "The Belt and Road"initiative,the initiative was in response to a growing number of countries.The economic development of Asia and the world ushered in new opportunities and space,and the cooperation of trade between China and the countries along the belt and road is getting closer and closer.The theory of international economics shows that the cost of trade is an important variable affecting the growth of international trade,while the theoretical circles about the cost of international trade are relatively few.This paper attempts to make a study on the bilateral trade costs between China and the countries along the belt and road,to explore how to reduce the bilateral trade costs and promote the development of bilateral trade between China and the countries along the belt and road.This paper is based on the theory of relevant international economics,and analyzes the present situation of trade between China and the countries along the belt and road,then using Novy(2013)improved gravity model,calculates and analyzes the 2000?2016 the bilateral trade costs and the change between China and the countries along the belt and road.The results show that:1.the bilateral trade costs between China and the countries along the belt and road was declining,but it became stable after 2012.2.The cost of bilateral trade between China and Southeast Asian countries is the highest,and the cost of bilateral trade with Middle East European countries is the lowest;3.The average cost of bilateral trade between China and the high income countries is the lowest,and the average trade cost of middle and high income,middle and low income and low income countries is increasing.Then,this article do an empirical analysis on the bilateral trade costs'influence factors.The results show that:1.The infrastructure construction of the countries along the lines can significantly reduce the trade cost.The trade dependence and openness of thses countries have a significant negative correlation with the trade cost.Geographical distance and clearance time are the factors to increase the bilateral trade cost.2.The effect of infrastructure construction in Southeast Asia and Central Asia on the reduction of bilateral trade costs is not significant.3.There is a significant positive correlation between infrastructure construction and trade costs in low income countries.Further,the author do an empirical test of the impact of trade costs on bilateral trade growth.The results show that the reduction of trade costs can significantly increase bilateral trade volume between the two countries,and the construction of infrastructure and bilateral trade growth are significant positive correlation(Low income countries are opposite).Finally,according to the results of empirical research,it puts forward corresponding policy recommendations to promote the bilateral trade between China and the countries along the belt and road.