Analyze China And Mongolia Goods Trade Structure

From 1999 to 2014,China has become Mongolia’s largest trading partner for 16 years, the value of bilateral trade from $263 million in 1999 increase to $7.318 billion in 2014,an average growth rate per annum of 24.82%. Although the scale of bilateral trade is expanding, the bilateral economic and trade cooperation is still at a low level, the structure of goods trade is single. Due to goods trade structure can directly reflect the economic and trade cooperation between the two countries, so this paper expect in-depth analyze the change of bilateral goods trade structure and explore the affecting factors, on this basis make suggestions for further promote the economic and trade cooperation between China and Mongolia.This paper first from two aspects of trade and investment analyze the current situation of bilateral economic and trade,finding that the scale of bilateral trade and investment are growing, but goods trade structure is very simple. By in-depth study the change of bilateral goods trade structure finding that China mainly export manufactured products to Mongolia, through use the method of classified according to the technology getting that the goods trade structure of China to Mongolia have no significant improvement overall, but divided into two stages, there were significant improvement in 1999-2007, goods trade structure presented lower in 2008-2014; China imports from Mongolia is mainly with energy and mineral primary products, especially since 2005, the proportion of primary products has been above 96%. Utilizing the Trade Combination Index (TCD) and Revealed Comparative Advantage Index (RAC)to measure the goods trade structure between China and Mongolia finding they carry out bilateral trade on the basis of their respective comparative advantages, the goods trade structure have highly complementary and they have close relationship. Finally, applying the method of principal component analysis to empirical study factors that affecting China and Mongolia goods trade structure, getting the result that main factors is China’s technological progress and the industrial structure of Mongolia and China, secondary factors is China direct investment to Mongolia, China’s economic level as well as endowment of China, and proposed corresponding countermeasures and suggestions for bilateral economic and trade cooperation based on the empirical results.