Comparative Analysis Of Trade Cost And Trade Growth

In international economic theory,Paul krugman(1990)has redrawn trade costs from "marginal figures" back to the core.On the empirical side,most scholars believe that trade costs remain a key factor in international trade,especially in developing countries.At present,the world is trying to promote trade facilitation,and China is actively pursuing the "One Belt And One Road" strategy,which aims to promote international trade and economic development with countries.Therefore,we will study which factors will promote the growth of trade,how to lower the trade cost.So,the explorations of these problems have very important practical significance.Using Novy(2011)improved gravity model of trade cost calculation method,for China and the countries along the "area" in 2000?2015 of bilateral trade costs for national level and industry level is calculated.At the national level,China and the"area" all the way along the country's trade costs overall showed a trend of decline,with bilateral trade cost minimum 7 countries of Southeast Asia,with bilateral trade costs biggest drop in 16 countries in eastern Europe.At the industry level,this article selects the 22 OECD countries,calculates the ISIC from 2006 to 2015 in China and these countries bilateral trade cost of twelve big industry,found in China and the United States and Germany in the 12 two-way trade industry is the lowest cost,the resources industry trade costs than the tech industry.In resource-based industries,the average trade costs of coking,refined petroleum products and nuclear fuel manufacturing are highest.Then,this paper makes an empirical analysis on growth and trade costthrough the establishment of bilateral trade growth model for multiple regression.The empirical study findsthat trade costs,scale of bilateral economic and trade growth are significant correlation.Compared to China's export,trade costs and the growth of bilateral economic scale for Chinese imports have stronger role;the cost of production plays a strong role on Chinese imports.Foreign direct investment is a significant factors affecting bilateral trade.In addition,the terrorism index of the middle-south Asia and west Asia northern Africa have a greater influence on the bilateral trade.Then,we draw gravity model from Jacks(2011).The empirical results show that influence the degree of bilateral trade cost strength of trade facilitation,geographic distance,the fta,tariff rate,exchange rate fluctuations,the common language,per capita GDP gap.Finally,this article based on literature review and empirical research,puts forward the further reduction of China and the countries along the "area" bilateral trade costs of policy recommendations.