A Study On The Insufficiency Of Institutional Supply In Global Trade Governance

The financial crisis broke out and swept the world in 2008.Both developed economies and developing economies have successively slumped and the world trade volume has suddenly dropped.In the post-crisis era,global economic growth was weak,populism was recovering,trade protectionism was rising,and the global trade governance system was in trouble.As the current core system is in trouble and the supplementary system emerges in an endless stream;the developed economies are protecting themselves and the emerging economies are actively involved.Under such circumstances of complex and full of contradictions,the global trade governance system will face more systematic and more difficult coordination in the future.Under the background of the major changes in the global trade governance system,this article studied the issue of inadequate supply of global trade governance institution,which has practical significance.This paper made use of the complementarity of the perspectives of international relations studies and economics,and combined game theory with supply-demand model in the global governance system to analyze on both micro and macro levels.First,we analyzed the issue through game theory on the basis of relevant theories of the global trade governance system and combined with the status quo on the micro level,concluded the reasons for insufficient supply of institutions are: Prisoner's Dilemma and cooperative solutions are difficult to achieve.Meanwhile,on the macro level,based on the concepts of institutional supply,demand and effectiveness,we creatively constructed a supply-demand model in the global governance system.Through the dynamic analysis in the model,we concluded the reason s are both supply willingness and capacity of traditional institution supply countries have declined,resulting in a widening gap between the supply and demand of the institutions and constantly moving away from the equilibrium of “good governance”.Finally,we suggested the effectiveness of international organizations and multilateral trade frameworks should be strengthened and the “leading country” should appear.China should increase national strength and enhance the ability to supply global trade governance institutions,strengthen multi-party cooperation and promote the reform,take the "Belt and Road" as a breakthrough to actively carry out the path of institutional innovation to participate in global trade governance.