Empirical Analysis And Potential Estimates On Sino-Mongolian Bilateral Trade On The Gravity Model Of Trade

With the changes in the international political and economic relations, the Sino-Mongolian bilateral economic and trade relations experienced different stages of development. It has been more than ten years that China has become Mongolia’s largest trading partner and the largest investor. Sino-Mongolian has a natural geographical and complementary strengths. Strengthen bilateral economic and trade cooperation can make a positive contribution to the implementation of the "Silk Road Economic Belt and Maritime Silk Road" strategy, while "Silk Road Economic Belt and Maritime Silk Road" strategy to further promote may also promote the development of Sino-Mongolian economic and trade. In this paper, we analysis of the main factors affecting China foreign trade, using its top ten trading partners and neighboring countries as a sample, exploring the extended trade gravity model for panel regression. On the basis of these, we further analysis of the main factors restricting the Sino-Mongolian bilateral trade. The main reasons have many respects :Mongolia have small economies of scale, bad laws and unstable business environment, infrastructure development lags and low degree of regional integration, the paper finally calculates the Sino-Mongolian trade potential based on extended trading gravity model. Sino-Mongolian bilateral trade is underdevelopment, and it should rely on Silk Road Economic Belt and Maritime Silk Road, and give full play to the role of Asian investment bank to explore the potential of Sino-Mongolian border trade.