Analysis On The Influencing Factors Of The Export Of China’s Mechanical And Electrical Products To South American Countries

Due to the single economic structure,South American countries rely heavily on imports of mechanical and electrical products,which is just complementary to China’s export characteristics.At present,the growth rate of China’s export to the region on mechanical and electrical products,has significantly exceeded the traditional markets such as the United States,Europe,Japan,South Korea and some other emerging markets.And for South American countries,China has become the main import source of these products.Therefore,it is of great significance to explore the influencing factors and their functions in the trade,which will continue to drive the export growth of China’s products and further expand the market share of South America.Firstly,this paper explores the export status of China’s mechanical and electrical products to South America.It is known that the market potential of South America is huge.And Brazil has always been China’s major trade partner.In recent years,the trade status of Chile,Colombia,Peru and Ecuador has increased.And China’s export structure to the region is gradually optimizing.Then,through correlated analysis,this paper explores the possible influencing factors and classifies them into five categories: product level,supply and demand level,exchange rate and distance,trade environment and institutional environment of importing countries.And it elaborates the influence mechanism of each factor on China’s mechanical and electrical products export to South America.Furthermore,this paper uses the Grey Correlation Degree method to rank these factors,and then uses the Two-way Fixed Effect Model to explores the specific effects of the first seven main factors.The results show that real GDP of both countries,the R＆D investment of the products,government efficiency and investment freedom of South American countries,as well as the signing of FTA,all have significant positive effects.However,the growth of exchange rate and labor cost both have significant hindering effects.Finally,according to the above research conclusions,this paper puts forward some countermeasures and suggestions from three levels of government,industry and enterprises,to further expand the export of China’s mechanical and electrical products to South America.