An Analysis Of The Influential Of The "BCIM Economic Corridor" Initiative On China’s Export To Bangladesh,India And Myanmar

In recent years,regional economic integration has gradually become the trend of world development.The cross-border economic corridor is one of the types of regional economic integration,which is helpful for the countries cooperating in the region to remove trade barriers in time,accelerate the flow of factor resources and promote the development of regional foreign trade.Entering the new normal of the economy,China has established friendly trade relations with other countries with a more open manner.As one of the components of the "One Belt and One Road" initiative,"BCIM Economic Corridor" is the bridge of economic and trade among East Asia,South Asia and Southeast Asia.This paper mainly explains how the "BCIM Economic Corridor"initiative changes the trade pattern of Bangladesh,China,India and Myanmar,and whether this initiative influences the exports from China to Bangladesh,India and Myanmar.Firstly,this paper summarizes the total trade volume of China,Bangladesh,India and Myanmar respectively from 2002 to 2017,and the export trade of China to Bangladesh,India and Myanmar.Secondly,the author uses the improved RCA index to calculate the SITCO-9 products which exported by China to Bangladesh,India and Myanmar respectively in 2002,2014 and 2017.This index shows that compared with Bangladesh,India and Myanmar,China usually has a comparative advantage on exporting industrial goods,and this advantage was generally strengthened after the "BCIM Economic Corridor"initiative.However,China does not have a comparative advantage on exporting primary products.Thirdly,in order to analyze the relationship between the construction of "BCIM Economic Corridor" and the development of trade pattern among Bangladesh,India China and Myanmar.There are 17 countries belonging to the three major economic sectors that are selected as the comparative.All three central indices show that China and India have become the core of trade in the region,and their economic independence strongly after carrying out the "BCIM Economic Corridor" initiative.The international trade network map is drawn from the trade volume among 17 countries.It illustrates that China has replaced Japan as the trading center of the three major economic sectors in 2014.India has increased foreign trade rapidly,and Bangladesh,Myanmar has strengthened weakly on the trade network map.Fourthly,using the synthetic control method to set up the implementation of the"BCIM Economic Corridor" initiative as an impact event,and taking the whole of Bangladesh,India and Myanmar as treated group.The control group includes 73 countries which did not sign some regional free trade agreements with China.The empirical results and placebo tests prove that China’s exports to other three countries had a positive effect after the "BCIM Economic Corridor" initiative was proposed.Finally,the author believes that the continuous prosperity of trade among China,Bangladesh,India and Myanmar could be achieved by improving cooperation mechanism,investment environment and infrastructure construction and so on.