Study On The Economic Interaction Strategy Of "The Belt And Road Initiative"

"The Belt and Road initiative" is the strategic conception proposed by China.It integrates the Eurasia economy and advocates the construction of an inclusive and open system.It also has important strategic meaning to the construction of neighbors'infrastructure,the development of China's economy and even the balance of world's politics and economies.The effective implementation of the strategy depends on proper policy.There exist a strategy choice and optimization combination problem when it comes to how to receive effect through the specific implementation of strategy.Different policies can make a difference in the effect of strategy implementation.The most important topic we should give more attention and research in is what kind of specific tactics should be adopted to achieve the target of "The Belt and Road initiative" efficiently.Based on the research objective,the specific implementation tactics of "the Belt and Road initiative"were studied in this paper.Tactic is the realization mechanism of strategy,strategy chooses the general orientation,we should leam to do subtraction while tactic chooses action,we should leam to do addition.Strategy is long-term and concise while tactic is flexible and complex,there is no way to to seize the moment when it's not flexible enough and also no way to resounding victory when is not complicated enough.According to the national development and reform commission,the ministry of foreign affairs,the ministry of commerce on March 28,2015,jointly issued the "Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road".We all know the goal of "the Belt and Road initiative"is the pursuit of mutual benefit and win-win results with countries along the route.To that end,countries along the route have many ways to achieve the goal,such as trade,investment,labor,technical communication,co-construction of infrastructure and the exchanges of cultural and so on.Taken together,these approaches called tactics.Economic interaction tactics tries to study how to effectively strengthen economic interactions with countries along the route under the new circumstances of international region cooperation.It also tries to strengthen contacts and enhance its interactivity.As the paper focus on the study of economic interaction,it is necessary to have a set of quantitative method to measure the connection degree between countries along the route.Only Leontief input-output method can undertake the task while investigating the whole economic methodologies.Input-output analysis is a theory of economics that using mathematics matrix structure to reflect the inherent connection between input and output.The relationship between input and output in the unit product is economic structure parameters of the system.If we can calculate a country's per unit of gross domestic product(GDP)output needs how many unitsproducts imported from another country,in other words,a country should provide how many units of equal value product for another country's per unit of gross domestic product(GDP)output,we can get a better understanding of the economic connection through product exchange.Through the connection we can study the condition of economic interactions between countries along the route and develop corresponding policy choices and combinations according to its research.Obviously,we can establish economic interaction model according to the analysis and indicate the interactive mechanism through direct and indirect input coefficient of per unit product.This paper centers economic interaction tactics of"the Belt and Road"strategy,focus on the following three questions:first,what is the economic interactions;second,what is the main factors of influencing economic interactions between countries along the Belt and Road;third,based on the empirical analysis,how to deepen economic interactions between China and countries along the Belt and Road.This paper makes some discussions in view of the above problems and its general idea and chapters are arranged as following:The general idea of this paper is:in order to study the economic interaction tactics of"the Belt and Road"strategy,this paper first introduced the background of proposing"the Belt and Road"strategy,and used SWOT analysis to study the connotation of"the Belt and Road initiative".And then,this paper usedisport and export trade data between China and countries along the Belt and Road in 2014,input-output model of economic interactions is established according to input-output analysis.This paper used the model to investigate the relationship of economic interaction between China and countries along the Belt and Road,and what are the factors influencing economic interactions between two nations.On the basis,the paper put forward what should we do to strengthen the economic interactions between China and countries along "the Belt and Road".Finally,it gave the corresponding policy recommendations in the perspective of theory researchers and made the forecast to the future.This paper consists of eight chapters,the main content of each chapter are as follows:The first chapter is pandect and it mainly introduces research background,research purpose and research significance.It defines the conception of "economic interaction" and then introduces the innovations and shortcomings of this paper.The second chapter summarizes relevant theoretical basis and literature review for the follow-up study.Theoretical basis mainly includes developing strategy theory,input-output theory and economic co-operation theory among developing countries.The literature review includes economic interactions,constructions of "The Belt and Road"strategy and national economy and social development plan.The third chapter is to study economic interaction tactics of "the Belt and Road initiative",firstly we should get a better understanding of "the Belt and Road initiative".Therefore,the third chapter mainly elaborated China's background of proposing "the Belt and Road" strategy and the connotation of "the Belt and Road initiative" conception.Strategic background analysis includes the situation ofdomestic economy and international political and economic,and on this basis,the chapter uses SWOT analysis to analyze "the Belt and Road initiative".Connotation of "the Belt and Road initiative" conception is divided into four parts,including the strategic target,strategic focus and strategic stage and the strategic measures.Background and the connotation analysis of economic interaction provide theoretical basis and practical basis for the model.The fourth chapter established input-output model related with the economic interactions of "the Belt and Road" strategy.On the basis of input-output theory,the model uses import and export trade data between China and countries along the Belt and Road in 2014 and constructed input-output table of economic interaction.And then this paper established input-output model on the basis of input-output table,measuring the direct consumption coefficient,indirect consumption coefficientand complete consumption coefficient of the model.The fifth chapter empirically analyzed economic interactions between China and countries along the Belt and Road according to the consumption coefficient calculated.The empirical analysis includemacro-analysis,direct economic interaction analysis,completely economic interaction analysis and structure analysis,investigating the most important factors affected the economic interaction of countries along the Belt and Road and providing support for the research of economic interaction tactics in "the Belt and Road" strategy.The sixth chapter studied on the economic interaction tactics of "the Belt and Road"strategy according to the results of the empirical analysis,and in other words,studying on how to strengthen economic interactions with countries along the route.Analysis includes the challenge for the economic interactions,ideological framework of economic interactions and economic interaction tactics.The seventh chapter discussed the supportive policies to ensure economic interaction tactics can be completed efficiently.The paper tries to propose policy recommendations for the country's social and economic development plan in the perspective of theory researchers.And it aimed to improve construction level of "The Belt and Road initiative".Policy recommendations including regional development and fiscal policy,market expansion and financial policy,industrial policy and enterprise support policies,etc.Finally,the last chapter summarized the paper and then gave a forecast to the future.On the whole,the paper analysis interconnection and interaction of national economic development policies according to "The Belt and Road initiative",and strives to achieve innovation in the following aspects:Firstly,the paper tries to have innovative research on economic interconnection and interaction of countries along the Belt and Road and creats input-output model between countries along the Belt and Road.At present,although there are many studies of "The Belt and Road initiative",the research mainly concentrated in international relations,culture and tourism.No one has studied "The Belt and Road initiative" from the perspective of economic interactions.Through the results of the model:the decisive factors influencing the economic interactions between the two countries is the geographical spatial distance and isolation,although the degree of intimacy on political and military affects economic interactions between two countries,is not the decisive factor.So with the construction of transportation infrastructure,it can break the regional isolation and effectively promote economic interactions of two countries.In addition,countries joined the regional international economic organizations have more active economic interactions,Regional economic integration can realize free transfer of factors through free trade,the higher the degree of competition in the market,the economy of the allocation of resources will be in the optimal state.Empirical results provide theoretical basis and practical basis for the specific implementation of "The Belt and Road initiative".Secondly,the paper tries to have innovative research on the policy selection of specific implementation of "The Belt and Road initiative" and put forward promoting policies of empirical relations of economic interactions.This paper gives the corresponding recommendations for "The Belt and Road initiative" in the perspective of theory researchers.It aims to explore how to strengthen the economic interactions between countries along "the Belt and Road" by using economic interaction tactics and proposes corresponding tactics for possible challenge.These economic interaction tactics contribute to the implement of "The Belt and Road initiative".It also contributes to selecting suitable measures to local conditions by local government and stimulating enterprise's initiative to take part in the construction of "The Belt and Road initiative".There were also two points of this paper to be improved:Firstly,this paper selects"the Belt and Road initiative" as the background,but in the model,the object of study choose China,Russia,Kazakhstan,India,Sri Lanka,Thailand,Malaysia,Indonesia and Turkey on the economic relationship between the nine countries,because of the difficulty of data to find.But there are 65 "tthe Belt and Road initiative"countries in total by 2015,and the model just select nine countries in this paper.So if we really want to completely know the economic interaction relationshipbetween "the Belt and Road initiative" countries,weneed complement in the future.Secondly,the paper studies economic interactions of "The Belt and Road initiative"under the perspective of national economics.Political factors are not discussed in the paper and even not put in the input-output model.However,the political factors have important effect between "the Belt and Road initiative" countries and the complex international relations make our world more uncertainty in the future.All these problems will be supplemented and improved by further research.