The Structure And Trade Effect Of The "wheel And Spokes" In The FTA Network

This article mainly studies the trade agreement on the basis of previous research.Past articles have mainly focused on trade agreements,including bilateral trade agreements and multilateral trade agreements.However,this topic has more discussion on the balance.It does not mean that the trade agreement is optimal,and it hopes to find a decision on a certain country.To sign the conditions for a trade agreement.As far as the theory of axles and spokes is concerned,there is relatively little research in this area.I believe this article can serve as a powerful complement to these theories.The innovation of this paper is that the assumed degree of trade liberalization and the initial tariff are different in the established model.In addition,the length of the spokes and the cost of signing the agreement are taken into consideration to prove the benefits of the country as an Axle,as well as the loss of welfare caused by becoming a country of spokes and a state of being an Axle.And the country of the country of the wheel is exclusivity in a certain area.Therefore,we hope to use this article to suggest that the Chinese government should become an axon country as far as possible.It must be mentioned that the emergence and development of service outsourcing has put forward new requirements for the service trade agreement,and it needs the FTA agreement to involve more content related to service trade.Some scholars have done detailed research on this piece of service outsourcing,and proposed that whether there is a political economic factor or not,there is an appropriate trade agreement that makes the FTA agreement necessary,which at least has effects as shown below:1)In the FTA axle spoke structure under a three-country model,if the level of rules between two spoke countries and the axle country is heterogeneous,then the trade volume between the country of the hub country and the spoke country with a higher level of regulation will increase,However,the amount of trade between the country of axe and the country with a lower level of rules will be reduced,and the level of FTA rules will have a significant trade transfer effect.2)From the spokesman's point of view,the state-of-the-art spoke power with a lower level of rules increases the depth of the FTA rules,and thus achieves an FTA rule similar to that of another spoke nation with an axle country.3)If the average tariff level under the multilateral framework(WTO)falls further,then the trade between the two spoke countries will increase,while the bilateral trade between the country of the hub countries and the two spoke countries will decrease,which further confirms the relative level of the rules.The level of trade will have trade transfer effectsThe homogeneity and heterogeneity of our so-called FTA is represented by an parameter in our article.For convenience,we may set it as t.T can also be interpreted as a tax level in connection with the actual situation.Here,the tax is a tax level in a broad sense,or it can be understood as the result of weighted average taxation of various commodities.If t is greater,it means that the higher the tax level,the shallower the depth of the agreement.The original homogenized study t has only 0 and 1,and the heterogeneity protocol in this paper requires that the value of t cover the entire 0 to 1 interval.The single-point situation of 0 and 1 can be regarded as two special cases,which means that the homogenized protocol is the extreme case of the heterogeneous protocol.In reality,when two FTA protocols with different depths are further discussed,When the depth becomes the same,it returns to homogeneity.When the number of FTAs was increased,the wheel spoke structure was lifted.The so-called hub spoke structure is represented by the regional trade network relationship connected by the FTA protocol.Countries that have signed more FTAs have become the substantial axle countries,and countries that have signed fewer FTAs have become spoke countries.The heterogeneity perspective of this paper is mainly embedded in the wheel spoke structure for discussion.This is also closer to reality,because the world's trade agreement network can be composed of these wheel spoke structures.By analyzing the structure of these wheel spokes we can better analyze the current international trade.China's current efforts in FTA are obvious.At present,China's FTA network has almost completely covered the entire East Asia and Southeast Asia regions,and has expanded to areas such as Central Asia.It has initially assumed the status of a regional hub country.The purpose of this paper lies precisely in that under this background,China needs to make policy choices in the FTA to maximize its national interests and take into account the future trend of international trade.China should actively participate in multilateral negotiations.