Research On Comparative Advantage And Complementarity Of Sino-Romanian Agricultural Trade

The relationship between China and Romania has a long history.Romania was the third country to establish diplomatic relations with the People’s Republic of China when the latter was founded in 1949.In recent years,having been takenthe advantage of the “Belt and Road” initiative and the “16+1” cooperation mechanism,Sino-Romanian comprehensive friendly cooperative partnership has been further developed.This year,China and Romania will celebrate the 70 th anniversary of their establishment of diplomatic relations.And it has been 15 th years since the two countries established comprehensive friendly cooperative partnership.In 2017,the agricultural output accounted for 4.4% of its GDP,and employment in agriculture-related fields accounted for 22.9% of its employed population,significantly higher than the EU’s overall level of 4.2%.Therefore,agriculture plays an important role in Romanian economy.It is with no doubt that agricultural cooperation comes first and foremost in developing economic and trade cooperation relationship between China and Romania.Romania is also eager to further develop agricultrual cooperation with China,which boasts a giant market,thus promoting export growth and increasing farmers’ income.However,for a long time,the total amount of bilateral agricultural trade between China and Romania has been kind of small with a large deficit on Romanian side.How to further develop the agricultural trade relationship between China and Romania and thoroughly implement the "16+1" cooperation mechanism has risen to become an important issue.This paper starts with the introduction of Romanian agricultural development,analyzes the characteristics of agricultural trade between China and Romania,and by introducing indicators such as the Revealed Comparative Advantage(RCA)Index,the Trade Complementarity Index(TCI)and the Grubel-Llyod index(GLi),analzyzes indepth the competitiveness and complementarity of agricultural products trade between China and Romania.On this basis,policy suggestions to further promote development of agricultural trade between China and Romania are put forward.Through analysis,the following conclusions has been reached: In the international market,Romanian agricultural products as a whole have comparative advantages,while China’s agricultural products have generally lost their comparative advantages;from the perspective of sub-categories,the chapters of agricultural products of China and Romania which have comparative advantage in the global market varies a lot,thus basically not in a competing position with each other.At the same time,the complementarity between Chinese imports and Romanian exports is comparatively stronger.In addition,during the ten-year observation period of this paper,the agricultural trade between China and Romania has been getting less inter-industry oriented and has the tendency and probability to be getting intra-industry oriented.Moreover,there are altogether 12 chapters of agricultural products that have high complementarity in the Sino-Romanian agricultural trade,accounts for almost 50% of all the agricultural products,thus existing rather great potential for trade development in the future.Based on the above analysis,this paper argues that,in order to further develop the agricultural trade between China and Romania,more attention should be paid to the following five aspects: Firstly,to lay a solid foundation for bilateral agricultural trade through upgrading the policy framework;Secondly,China should expand its imports of high-quality agricultural products from Romania;Thirdly,to increase agricultural investment cooperation between the two countries;Fourthly,to drive agricultural economic development with scientific and technological innovation;Last but not lease,to further improve the level of public services of the two governments.