The Positive Effect Of High-level Visits To The Trade

There are many factors that influence trades between different countries.However,political factors are becoming one of the important factors,which affect trades between different countries.With China’s increasingly comprehensive national strength and a significant rise of international status,foreign trade development is very rapid.The development of foreign trade for China’s economic growth is of great significance.In order to promote the development of our country’s foreign trade enterprise,political diplomacies of top leaders have been given a new mission.Through the analysis about the present situation of the development of China’s foreign trade in recent years,it has been found that foreign trade of our country has a relatively rapid growth momentum and political diplomacies are more frequent between countries.In particular,trade flows have doubled and redoubled.Through the specific analysis of the current situation of the senior leaders’political diplomatic activities in China,both China’s top leaders’ visits and trading partners’coming to China for visits are becoming more and more frequently.They highlight the power and charm of our country from another angle.In this paper,take the top leaders’visits of our country or trading partners’ coming to China for visits for examples,to discuss high-level visits’ influence on foreign trade development in our country.This article uses the datas of the visits between China and other countries in the world,imports and exports of China as well as other relevant datas during the year of 2002-2014.The methods of a hybrid least squares estimation,panels fixed effect model,random effect model and instrumental variable method have been uesd in the article.It aims to analyze the influence of the high-level visits between China and other countries to the trades’relationship,including the high-level visits to exports’ effect and imports’ effect.The results show that high-level exchanges between our country and other countries boost the growth of our country’s exports and imports.On the one hand,leaders of China visit to promote the export trade of experiencing;On the other hand,foreign high-level visits to China aslo have a certain role in promoting China’s imports,and there are significant hysteresis effects.From the point of view of sample points,the role of our senior trip(or foreign high-level visit)to the exports(imports)differs with the different categories of high-level visits,trading products as well as the characteristics of other countries.In the form of four types of visits,official visits have a promoting effect on trades and present a significant hysteresis effect;From the perspective of classification of the products,the official visits to China’s non-farm products exporting and importing effect is greater than the effect of agricultural products exporting and importing respectively;To analyze from the angle of the degree of developed countries,high-level exchanges between China and the OECD countries can pull the trade growth,but this effect is not obvious for OECD countries.Finally,this paper uses instrumental variables estimation for robust testing,proving the promoting effect of high-level visits to the trades is not affected by estimation methods.This paper confirms the role of high-level visits in promoting trades between China and other countries,including China’s high-level visits to promote exports and foreign senior trips to China for the growth of exporting to China.In the era of the changes of international political environment,political visits are aimed to consolidate political relations between two countries or multinational economic and trade relations.Use the political power and influence of the national leaders to create a good political environment for domestic enterprises,so as to bring the economic benefits of more intuitives.