Study On Trade Potential Of Pharmaceutical Products Between China And Countries Along The "B&R"

Pharmaceutical industry is an important industry related to national economy and people's livelihood.In the international market,pharmaceutical industry has a large market capacity and demand.In 2017,in order to implement the "The belt and Road"(B&R)initiative which share the fruits of China's reform with countries and build a community of Shared future,China announced a number of cooperation projects with the world health organization,indicating its willingness to work with countries to build a global platform for sharing information on infectious diseases--the healthy Silk Road.During the 19th CPC national congress,President xi put forward healthy Chinese strategic contents such as "attaching equal importance to both traditional and western medicine,inheriting and developing the cause of Chinese traditional medicine" thus,it can be concluded that China has an important determination to strengthen the trade of pharmaceutical products and promote the healthy development of the people along the"B&R".Based on the above research background,the main content of this paper is the research on the trade efficiency and potential of pharmaceutical products between China and the regions or countries along the "B&R".The selected samples are the panel data of the total trade volume of pharmaceutical products between China and 15 major countries along the "B&R" from 2003 to 2017.This paper firstly sorts out the current trade situation of pharmaceutical products.With the steady increase of the scale of China's pharmaceutical industry,the profit growth momentum is gradually shifting to the manufacturing industry with high added value,which further improves the domestic innovation environment.Based on the analysis of the current trade situation,it is concluded that the trade of pharmaceutical products in China has the characteristics of increasing import trend and unreasonable export structure.However,it should be noted that the trade of medical products between China and regions or countries along the"B&R"shows a good development trend.Then,we conduct qualitative and quantitative analysis on the trade total volume of pharmaceutical products in representative regions and countries.In order to ensure the rationality and accuracy of data acquisition,We take classic indicators like TII?TC?RAC?RC,and carry out qualitative analysis on major pharmaceutical products,such as medicinal herbs,extracts,biological pharmaceuticals,active pharmaceutical ingredients,medical drugs and health material supplies.It is concluded that Chinese medicine has a strong comparative advantage and complementarity,Western medicine is an important product of China's pharmaceutical foreign trade,Part of the countries along the "B&R" have a enormous demand for Western medicine and so on.This is of great significance for China to strengthen bilateral trade and upgrade the level of pharmaceutical industry.In the quantitative analysis,the explained variables are the total volume of import and export of pharmaceutical products between China and the regions along the "B&R" from 2003 to 201 7,and the explanatory variables are institutional factors,cultural distance,signing of free trade area agreements,infrastructure.We adopt the stochastic frontier model of gravity measurement method,and used maximum likelihood test method to examine the applicability of the related influencing factors.At the end of the research,we confirm the final model,and the main empirical results are as follows:Generally,the panel data need to be analyzed by time-varying models.Due to the limitation of space,we only roughly tested the time coefficient.The empirical results of the time-varying model show that ?>0,this suggests that trade inefficiencies will decrease over time;From the natural factors of the main model:Among the factors that affect the efficiency of trade,distance is still one of the obstacles that cannot be ignored,which provides the direction of efforts to strengthen the trade volume between China and the regions or countries along the "B&R";The economic aggregate of the regions and countries plays a greater role in promoting the level of trade efficiency than that of China.Therefore,with the improvement of the level of economic development along the "B&R",the development space and potential for trade will be even greater.From the human factors of the sub-model:it can be seen that the impact of infrastructure on the level of trade efficiency is positive,but the impact is negligible.Government efficiency is the only variable that counteracts trade efficiency because of the "vigilant"attitude of the regions and countries along the "B&R".The signing of free trade area agreement exerts the greatest influence on the level of trade efficiency.Cultural distance promotes trade by meeting the needs of diversity.The remaining variables have a positive effect on the level of trade efficiency as expected.According to the empirical results,combined with the analysis of current situation and trade competitiveness of pharmaceutical products,and challenges we face,we have given reasonable policy suggestions on expanding the trade of pharmaceutical products in regions and countries along the "B&R":Firstly,Chinese traditional medicine products have advantages and strong complementarity,so we need to keep the market share and to improve the standard system for international trade in services for continuously extension of the existing trade cooperation.Secondly,China's western medicine products do not have trade competitive advantages,However,it is an important product of China's pharmaceutical trade with regions and countries along the"B&R",so in order to enhance the level of the pharmaceutical industry,we need to rely on the investment and development situation of multinational enterprises in China to strengthen the trade exchanges and cooperation in pharmaceutical products.Thirdly,the overseas Chinese market platform created by Traditional Chinese medicine enterprise can accelerate the internationalization of the trade of western medicine products.On the one hand,the resource sharing of Chinese medicine enterprises can reduce the investment cost of western medicine enterprises;On the other hand,overseas Chinese have a high sense of identity and cognition towards the brands independently created by Chinese people,which can help western medicine products gain more support and better reputation and effectively enhance the popularity of western medicine products in China.Fourthly,the signing of the free trade area agreement has a significant role in promoting the level of trade.Therefore,we need to link regional agreements with local strategies through the "B&R" initiative,form a larger stage for pharmaceutical research and development.Meanwhile,a regional joint research and development team should be established to accelerate the registration and approval process of pharmaceutical innovative products.Fifthly,western medicine is not a commodity transaction,so the construction of seaports,highways and railways play little role in promoting pharmaceutical trade.Therefore,it is necessary to strengthen the construction of medical infrastructure and increase access to pharmaceutical products for people along the silk and road.Sixthly,according to the analysis,Boston matrix,among the regions along the "B&R",Russia,Turkey,Bangladesh,Iran and the Philippines belong to the problem market,so it should be paid attention to.Nevertheless,because of each country's attitude toward "B&R" initiative is different,so we need to differentiate these markets,and trade on efficient markets.