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Research On The Measurement Of Trade Cost Elasticity Between China And ASEA

Posted on:2018-05-29Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhouFull Text:PDF
GTID:2569305168967839Subject:Quantitative Economics
Abstract/Summary:
With the completion of China-ASEAN Free Trade Area upgraded,the trade cooperation of China and ASEAN countries has risen to a new level.Now,China is the largest trading partner of ASEAN,and ASEAN is China’ s the second import and the fourth export markets.In the new historical starting point,China proposes to build 21st-Century Maritime Silk Road,which brings a new opportunity for China-ASEAN cooperation,and a new power for the development of each countries.The trade cooperation relationship between China and ASEAN countries is at the closest period in history,which makes the study of trade between China and ASEAN become a very important projects.Although many scholars research between China and ASEAN trade from trade cost perspective,few from trade cost elasticity perspective,and most of literature assumes that the trade cost elasticity is fixed.The fixed trade cost elasticity means that reducing trade cost will bring the same change to trade flow for every countries,and also for every industries,regardless of whether or not these countries have the different amount of trade share,and sign a free trade agreement.Based the above background,this article is improved Novy(2013)translog gravity model from the perspective of trade cost,and using it to measure the trade cost elasticity from total import and export and each industries’import and export aspects.The measured results:the difference between China and ASEAN countries total import and export cost elasticity is positive,which means that reducing the trade cost ASEAN countries benefit is greater than Chinese,so China can’t promote China and ASEAN trade development by reducing trade cost.The biggest difference in trade cost elasticity is Brunei 1725.02,and the smallest is Indonesia 7.18.Finally,through measuring trade cost elasticity of various industries,we find out the types of trade advantage products of China to ASEAN countries.According to the results,some suggestions are put forward:government should reduce trade barriers,improve the level of opening,strengthen infrastructure construction,the level of opening,adjust the industrial structure,promote product innovation,and reduce the cost of trade for advantage products.
Keywords/Search Tags:trade cost elasticity, translog gravity model, trade extensive margin, trade cost, China and ASEAN
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