Study On The Impact Of Institutional Environment On China’s Agricultural Export Trade

With the integration of the global economy and the deepening of trade globalization,economic and trade cooperation among countries is increasingly strengthened,and international trade has increasingly become an important driving force to promote the sustained and healthy development of the economies of all countries.In fact,in the process of international trade,the trading environment is complex and there is a large risk of contract breach,which means that the institutional environment of the host country has a direct impact on China’s export trade.Therefore,the relationship between institutional factors and international trade of products has gradually become a hot topic in the current academic research.In this context,it is particularly important to analyze the impact of institutional factors in international trade.The formulation of rules will have a positive impact not only on the success of the Asia Pacific Economic Partnership(RCEP)negotiations,but also on China’s comprehensive economic development and international trade partnership.As a large agricultural country,China actively and deeply carries out agricultural trade cooperation between China and these member countries,so as to maintain the stable growth of China’s agricultural export trade and promote the development of agricultural export enterprises.Therefore,this thesis will deeply analyze the possible impact of the institutional environment of RCEP member countries on China’s agricultural export trade from the perspective of the institutional environment of member countries.Taking RCEP member countries as the research object,this thesis makes a theoretical and Empirical Study on the impact of institutional environment on agricultural export trade.In terms of theoretical mechanism analysis,this thesis analyzes the possible impact of the institutional environment of Member States on agricultural export trade from the perspectives of political system,economic system and legal system.Among them,the theoretical analysis of the impact of institutional environment on agricultural export trade is based on Coase theorem,property right system theory,relational contract theory,international trade theory and related theories.Further,this thesis uses the panel data of China’s agricultural exports to 12 RCEP member countries from 2002 to 2018,and uses the principal component analysis method to calculate the institutional environment data of 12 countries during this period,compare and analyze the level of institutional environment of RCEP countries and the changes of China’s agricultural exports and trade structure to member countries from the data level.In the empirical analysis,the fixed effect model is used to test the impact of the host country’s institutional environment on China’s agricultural export trade.Based on theoretical analysis and empirical research,this thesis draws the following conclusions:(1)the institutional environment has a significant positive impact on China’s agricultural exports.The greater the per capita GDP of RCEP member countries,the more conducive it is to China’s agricultural exports.At the same time,China is more inclined to export to those member countries that have signed free trade agreements with China.(2)In the heterogeneity test,the improvement of institutional environment will promote China’s agricultural export enterprises to carry out import and export trade activities with these countries,whether it is a country with high institutional level or a country with low institutional level.However,for countries with low institutional environment level,the impact of the improvement of per capita economic level on China’s agricultural export is significantly greater than that of countries with high institutional level.(3)In order to further verify the persuasiveness of the empirical conclusion,this thesis carries out endogenous test and robustness test.In the endogenous test,the lag phase I and lag phase II of the core explanatory variable are taken as instrumental variables and tested by two-stage least squares(2SLS).In the conclusion,the core explanatory variable is still consistent with the above,which is significantly positive.In the robustness test,three test methods are adopted for verification.Firstly,the reliability of the regression results is verified by replacing the core institutional environment index calculation method,testing the lag effect of institutional environment and eliminating the partial capacity of samples.The final results show that the significance of variables and coefficient symbols have not changed significantly,and the conclusion has strong robustness.Based on the above research conclusions,this thesis puts forward corresponding policy suggestions: Improve the level of trade facilitation;Pay attention to the potential risks in the institutional environment;Establish transnational consulting service and information sharing platform;Actively promote export trade with countries with better institutional environment,create a good contractual environment,and help Chinese agricultural export enterprises “go global”.