Study On The Impact Of Trade Facilitation On China’s Agricultural Products Trade Potential

While globalization has promoted trade between countries,the negative impact of trade differences between different countries has also been gradually expanded.These differences lead to "trade inefficiencies" that raise trade costs between countries and limit trade potential between countries.Especially in the context of unstable economic situation,countries have begun to pay attention to the degree of their own facilitation.Since its inception,the Belt and Road Initiative has ensured all-round cooperation between China and countries along the routes.Remarkable progress has been made in recent years.And agricultural trade has always been an important component.Due to the easy corrosion characteristics of agricultural products,they have higher requirements to logistics,storage,etc.Also the influence of facilitation is greater.This paper first sorts out the ways through which facilitation can promote trade potential,and then principal component analysis is used to calculate the level of facilitation of each country along the Belt and Road,using this as the core explanatory variable to get empirical results with double fixed effect,examing different influences about China’s agricultural trade import amount and export volume,as well as the different impacts on different kinds of agricultural products in countries with different incomes along the Belt and Road through different samples.The gravity model is used to observe the dynamic change of trade potential brought by increasing the level of trade facilitation.The research shows that the promotion factors for China’s agricultural trade include the facilitation level of both sides of trade,GDP,trade openness,population size and so on,by reducing trade disputes and increasing the potential of agricultural trade.Among them,due to the relatively backward facilities construction,policies and systems of low-income countries,the effect of improving trade facilitation is more obvious.At the same time,most of the countries in Southeast Asia have signed agricultural trade reciprocity agreements with China,which have greater potential for trade than other regions.Therefore,it is necessary to increase mutual assistance with countries with lower income levels,also with the Southeast Asian.