Empirical Study On The Sino-pakistan Merchandise Trade Development Based On The China-pakistan Economic Corridor

Nowadays, regional economic integration has been a major trend in the field of world economic development. It shows the obviously ascendant trend though the in-depth development of economic globalization encounters bottlenecks.Under the impetus of close relationship of political and diplomatic fields between China and Pakistan, the bilateral trade is moving forward. The Free Trade Agreement implemented from January 1, 2006 between China and Pakistan is an important milestone in the development of the bilateral trade. In May 2013, with the concept “the China-Pakistan Economic Corridor” proposed, the trade between China and Pakistan gains a new opportunity for development.As an open channel between China and Pakistan,as well as South Asia, it will not only have an important impact on economic ties between China and Pakistan, but also can prompt domestic economy of Pakistan through its construction of infrastructure. Thus it has a great significance to researching the trade development issues between China and Pakistan in the context of “the China-Pakistan Economic Corridor”.Firstly, this paper summarizes the advantages and significance of trade with Pakistan, combined with “the China-Pakistan Economic Corridor”. Secondly, it tries to find out bilateral trade the development problems, on the basis of analyzing the current trade situation between China and Pakistan. Then, this paper uses the Trade Combined Degree(TCD index) and Intra-Industry Trade Index(IIT index) to analyze the complementary and trade competitiveness index(TC index) and the revealed comparative advantage index(RCA index) to analyze the competitiveness of trade between China and Pakistan.Next, this paper uses the VAR cointegration model to analyze the factors affecting the import and export between China and Pakistan.At last, from the national and enterprise levels and combined with the bilateral trade problems, influencing factors and advantageous conditions, this paper puts forward several relevant suggestions for the further trade development between China and Pakistan.