| Since China’s entry into the WTO, China accelerated its pace of exports, China to Chile export has been enjoying a rapid growth, especially after the signing of FTA in 2006, Chile has gradually become one of China’s most important trading partner in South America.During the past several years, China’s exports suffered two biggest slump, which was triggered by "911" event and the financial crisis. With a lot of small business failures, China’s unreasonable export market structure and the disadvantages of the single product structure problem was largely exposed. In order to change this situation, we need to explore new trade market and the change the structure of export commodities. The signing and implementation of China-Chile Free Trade Agreement have created good conditions of cooperation between China and Latin American countries, which will also play an important part in market diversification of our exports and the optimization of export commodity structure. So how China to Chile’s exports growth was achieved, mostly by the intensive margin or the extensive margin? How can the effects of the China-Chile Free Trade Agreement be seen in dual margin way? From the perspective of the dual margin, how can China and Chile’s trade expansion be influenced? All these questions are what we are going to answer in this paper.At the very beginning,this article reviewed the related literature of the dual margin and gave the basic concepts of dual margin, measure method and theory model in addition; Besides, this article offered dual margin analysis in the varieties of export products, export value and different industries respectively; Again, in this paper, based on the Tobit model, we gave the dual margin analysis and inspection of China and Chile bilateral trade growth; Finally, based on the theoretical analysis and empirical research, this article gives corresponding policy recommendations to both countries:to speed up the pace of free trade talks, decrease the cost of export trade; Adjust export market, implement the strategy of diversified market; the transformation of the mode of export growth, improve added value of China’s export products. |
