Research On The Home Market Effect Of Equipment Manufacturing Trade Between China And ASEAN Countries

Since 2009,China has been the world’s largest country in goods exports for 12 years,in China’s exports of goods trade,equipment manufacturing industry has contributed more than 50% of the flow.Since the 21 st century,especially since the founding of the China and ASEAN Free Trade Area,China and ASEAN countries have made positive progress in trade in goods,services and bilateral investment.Although it fluctuated in some years,under the influence of the disputes in the South China Sea and the rise of trade protectionism,the economic and trade relations between China and ASEAN countries are still close and deepening.In November2018,the two sides jointly released the “China-Asean Strategic Partnership Vision2030”,it also marks the further development of the relationship between China and ASEAN and the beginning of a new era.In 2020,China’s trade volume with ASEAN has already surpassed that of the European Union and become China’s largest trading partner,which marks Chin’s historic progress in economic and trade cooperation with ASEAN countries.Based on the above background,this paper studies the home market effect of China’s equipment manufacturing trade with ASEAN from the following aspects.Firstly,it introduces the research background and research significance of this article,reviews the existing academic research literature and achievements,expounds the research methods used in this article and the technical route adopted,etc.,then it introduces the related concepts and theories,and analyzes the mechanism of the home market effect from the aspects of the existence of trade cost,the occurrence of scale economy,the product differentiation and the increase of productivity.Secondly,from the perspective of trade scale,trade structure and trade regional distribution,and from the perspective of export and import,this paper analyzes the present trade development situation of 7 industries of equipment manufacturing industry between China and 10 ASEAN countries.Finally,by using the improved gravity model created by Schumacher(2003),tjen collect relevant data from UN database and World Bank,this paper selects the 2006-2019 data of China’s equipment manufacturing trade with ten ASEAN countries,and using Stata14.0 to process the above data,and through the verification result and to the result analysis,obtains the corresponding conclusion and the countermeasure suggestion.The main conclusions are as follows:First,there is a home market effect in the equipment manufacturing trade between China and ASEAN countries.Secondly,the results show that there are significant home market effects in the equipment manufacturing trade between China and Laos,Vietnam and Cambodia.Thirdly,in the verification of 7 sub-industries of equipment manufacturing trade between China and ASEAN countries,it shows that there are 6 industries with significant home market effect,including general equipment,special equipment,transportation equipment manufacturing,electrical machinery and equipment,computers,communications and other electronic equipment,instrumentation manufacturing industry.Based on the above empirical results,this paper puts forward the following suggestions and suggestions for the sound development of China’s foreign trade in equipment manufacturing industry: Through the promotion of product breadth and depth,increase the support to the equipment manufacturing industry,in order to optimize the export product structure.Government departments should strengthen the international status of Chinese products by strengthening the supervision of export equipment quality,building a perfect after-sales service platform and building a Chinese brand image with Chinese elements and characteristics as the starting point.According to the actual conditions of different ASEAN countries,we should formulate the corresponding export policies and strategies to grasp the ASEAN market,so as to better layout the foreign markets and accelerate the market diversification.Through deepening the supply-side reform to improve people’s well-being,do a good job to expand market demand related work.Finally,through the full cooperation between the government and enterprises to develop economies of scale,the government should grasp the current industrial structure,economic development and the international situation of ASEAN,and combine their respective characteristics and existing advantages and disadvantages,encouraging advantageous industries and supporting disadvantaged industries,at the same time,the competition mechanism and industry access mechanism should be strictly controlled,on the other hand,the enterprises should do well in the work of science and technology investment,personnel system and enterprise M & A.