Study On The Relationship Between Institutional Quality And Export Sophistication Along "the Belt And Road" From The Perspective Of International Division Of Labor

The growth rate of China’s total import and export trade continues to decline from 2011 to 2016,and the trade situation is severe.While “The Belt and Road”Initiative,the RMB into the international currency basket,and Foreign Investment Law release “institutional dividends”.And in 2017 and 2018,the growth rate of trade volume has rebounded sharply,and trade shows recovery.How to improve the quality of foreign trade,promote the transformation and upgrading of trade development mode,and seek China’s new position in the international division of labor system has become a key issue of concern to all sectors.Therefore,this paper takes 41 countries(regions)along “The Belt and Road” as a sample to explore the relationship between institutional quality and export sophistication from the perspective of international division of labor,to provide policy evidence for China to better participate in the international division of labor of “The Belt and Road” and enhannce the export sophistication.The paper starts from six dimensions: Control of Corruption,Government Effectiveness,Political Stability and Absence of Violence/Terrorism,Regulatory Quality,Rule of Law,Voice and Accountability,to calculate the score of overall institutional quality of 41 countries(regions)along “ The Belt and Road” from 2002 to 2016;and calculate the export sophistication of that using HS92 4-digit code trade statistics from2002 to 2016.On this basis,this paper carries out empirical analysis by using System GMM and set up the panel threshold model,and the results are as follows:(1)The overall institutional quality and international labor division in a country(region)has a significant positive effect on export sophistication;(2)International labor division as an intermediate variable,there is a significant threshold effect between the institutional quality and the export sophistication,as well as the threshold effect is a single threshold with a threshold of 0.8010;(3)As the status of international division of labor continues to increase,once the threshold is crossed,the promotion of institutional quality to export sophistication is significantly enhanced;(4)The status of international division of labor of most countries along the “ The Belt and Road” is still at a lower level,having not crossed the threshold including China.Finally the paper proposes relevant countermeasures: China should deepen the reform comprehensively,focusing on two-way promotion and adaptive development ofinstitutional quality and international division of labor and conduct international dialogue actively to achieve win-win development and seek a new position of international division of labor.