Measuring China's Domestic Trade Costs And Its Influencing Factors

Traditional trade theories and trade models believe that even considering the trade cost in the study,there will be no substantial impact on the results of the study.Therefore,trade costs are often ignored in the study.However,in the actual trade,the cost of trade exists in the entire trade process,and the empirical evaluation of the trade model has an indispensable influence.China's domestic and foreign trade situation is undergoing a transformation: Weak exports from abroad,trade growth rate has declined or even negative growth;on the other hand,intra-provincial trade is still the main mode of domestic trade in China,and inter-provincial trade is insufficient.The "13th Five-Year Plan for Development of Domestic Trade Circulation" pointed out that domestic trade has a basic and leading role in the national economy,promotes coordinated development of urban and rural areas in the region,raises the level of modernization,improves the business environment,and responds to complex changes.it has important significance in promoting the healthy development of the national economy.In this context,this paper starts from the perspective of domestic trade costs,measures trade costs from both regional and industrial levels,and hopes to reduce domestic internal trade costs,promote China's open space layout,optimize the industrial structure of the power Chinese economic transformation.This paper mainly uses in China "regional input-output table" and "regional input-output table" two data,based on Novy(2013)model respectively measure and analysis of bilateral trade cost in China in 1997,2002 and 2007 eight regions of the area between 30 and 2002,2007 and 2012,China's domestic multilateral the cost of trade,industry and trade in from the cost of measure.Finally,based on the spatial econometric model,this paper makes an empirical study on the influencing factors of trade costs,and draws the following conclusions:(1)From 1997 to 2007,the bilateral trade cost between the eight regions in China was greatly reduced,especially in the Beijing-Tianjin,Northwest and Southwest regions,with a decline of more than 30%.The geographical distance will have an impact on the bilateral trade costs between regions,manifested in the lower bilateral trade costs between adjacent regions;(2)From 1997 to 2002,the trade development in the eight regions was extremely uneven,and 2002-2007 years are the period of high-speed and stable development.Overall,economic growth is the biggest driver of bilateral trade growth between the eight regions in China,and for most regions,a decrease in bilateral trade costs explains about 40%-50% of bilateral trade growth;(3)The lowest cost of domestic trade in Anhui Province,and the cost of domestic trade in eight eastern coastal provinces and cities such as Shanghai is below 50.Most provinces domestic trade cost is reduced,and provinces with intra-provincial trades that are larger in scale and faster in terms of foreign trade,that is,provinces with more inward trade,face higher multilateral trade costs;(4)There are differences in trade costs between industries,and more scattered industries are facing higher trade costs.The concentration of industries in a certain extent is conducive to reducing domestic trade costs;(5)FDI and private capital investment has a significant impact on domestic trade costs.FDI's outflow of domestic trade volume will lead to higher domestic trade costs.The higher the private capital investment,the lower the domestic trade cost.