Study On The Impact Of China And Nepal Trade Facilitation On The Export Of Goods Trade

In May 2017,Nepal officially joined the Belt and Road Initiative by signing a memorandum of understanding(MOU)on cooperation with China.In October 2019,China and Nepal issued a joint statement to further promote the implementation of the Belt and Road Initiative,strengthen bilateral ties by strengthening infrastructure construction such as ports,roads,railways,aviation and communications,and jointly build a connectivity network across the Himalayas.Nepal’s second largest trading partner is China.the two sides have set up a working group on unimpeded trade under the framework of the China-Nepal Joint Economic and Trade Commission to promote trade and investment activities between the two countries.With the entry into force of the Protocol on Transit Transport between China and Nepal,the continuous progress of the China-Nepal cross-border railway,the operation of the new land-sea corridor in the west,and the continued implementation of the proposal on the construction of the China-Nepal-India Economic Corridor,the bilateral economic and trade collaboration has entered a stage of high-quality development featuring precise alignment.At the same time,both China and Nepal have begun to pay close attention to the problem of "trade inefficiency",a new invisible barrier to market access.At present,China and Nepal have reached agreement on the level of trade facilitation,actively explore and integrate into the global economic and trade architecture,and restructure the trade facilitation regime in accordance with the prevailing international norms.According to the research conclusion of this paper,China and Nepal have some troubles of trade,such as imperfect infrastructure and further improvement of customs environment.Therefore,we can calculate the trade facilitation level of Nepal and study its impact on the export potential of goods trade between China and Nepal,so as to promote trade between China and Nepal.It is of great significance to promote the high-quality development of China-Nepal trade under the framework of the Belt and Road Initiative.Based on a large number of literatures related to China-Nepal trade,trade facilitation and trade potential estimation,this paper focuses on the following researches: First,in-depth study on the specific influencing mechanism of trade facilitation on export potential of China’s goods trade,from four dimensions of port and infrastructure construction,customs environment,institutional environment,finance and e-commerce;Secondly,it analyzes the current situation of goods trade with Nepal respectively from the national and provincial levels,and focuses on the trade situation between Tibet and Nepal.Thirdly,by referring to previous research methods,the data of relevant countries with high similarity in trade development are included in the samples for empirical analysis.Based on the data from 2011 to 2019,the data analysis tool is used to construct the trade facilitation index system of China,Nepal and other 11 countries to measure and compare the trade facilitation level of China and Nepal.Fourthly,the extended gravity model is constructed,and the export of China’s foreign trade in goods is set as the dependent variable,and the trade facilitation level is the core independent variable.Since the trade between China and Nepal is affected by the Nepal earthquake,the dummy variable of whether China is affected by major geological disasters is added,and the influence of the export flow of China’s goods trade to Nepal on the trade facilitation level of Nepal is analyzed.The simulated value is obtained,and the influence of four first-level indicators on the export flow of goods trade is explored by regression of different indicators.The trade potential is measured by the specific value of realistic trade value and ideal trade value,which is innovative to some extent.The following conclusions are drawn: the trade between China and Nepal is highly complementary.China has the trade surplus with Nepal,which is large.Since the earthquake in Nepal in 2015,the proportion of Tibet’s goods export to Nepal in the national goods export to Nepal has decreased year by year;Nepal’s trade facilitation is in an inconvenient state.The overall level of trade facilitation and the four first-level indicators all have a positive and significant influence on the export flow of goods trade.China’s export potential of goods trade to Nepal is in the potential pioneering type.Based on the above conclusions,several policy proposals to augment the degree of trade facilitation between China and Nepal are put forth.and further investigate the export potential of goods trade between China and Nepal.