Study On The Bilateral Trade Between Togo And China

Trade between Togo and china begin very early before the establishment of diplomatic relations between the two countries. At that time most of the trade transactions relies on small amounts business between individuals. After the two countries established diplomatic relations in 1972, some Indian traders and Togolese businessmen began dealing with Chinese merchandises. In 1981 the two governments signed a trade agreement which stipulates that both sides, in accordance with international practice, will carry out merchandise trading.In recent years, with the development of China and African countries friendship, economic and political relations, economic and trade relationship between Togo and China has accelerated and trade volume has speed up. The two governments and businessmen from both countries continuously strengthen their partnership, investments and trade exchanges become frequent. The commodities traded between the two countries are many but structured.Presently reference on the study of the trade relations between Togo and China are just few. Therefore, the research on the bilateral trade relationship between Togo and China has emerged accordingly. We know that two countries trade with each other for there is comparative advantage between them. Describing the past and present situation of bilateral trade relations between Togo and China, we firstly conducted a statistical analysis of trade between two countries by using the data from 1997 to 2007 to conclude that Togo import more manufactures from China and export more agricultural products to China. Then revealed comparative advantage index of Togo and China has been measured by using the relevant theory, later, with empirical data in support of the trade between Togo and China is in line with the theory of international trade, and trade between two countries are complementary. Finally, the countermeasures to promote bilateral trade between Togo and China are advanced based on the revealed comparative advantage theory, which provides the corresponding theoretical and empirical foundation for the development of bilateral trade between two countries.