An Empirical Study On The Impact Of Institutional Differences On The Trade Potential Of China And Major Countries In Europe And The United States

The Russia-Ukraine war and the COVID-19 epidemic have deeply changed the pattern of global trade division.Developed countries such as Europe and the United States build exclusive and discriminatory regional economic alliances based on their systems,rules,and values,which is highly likely to have serious interference and impact on the scale and flow of China’s import and export trade.In particular,the United States has repeatedly used the "threat" of national security as a reason to unite with other countries to curb China’s high-tech products from participating in the normal international market competition for imposing sanctions;On the other hand,in order to alleviate the record inflationary pressure in the United States,the Biden administration has to consider canceling some of the import tariffs imposed by the previous government on Chinese general goods.It can be seen that the policy tendency of European and American countries to attempt to "disconnect" from China’s economy based on institutional differences and differences may show significant heterogeneity characteristics in the trade field of different products.This paper selects the bilateral trade data of textiles and electronic information products between China and major countries in Europe and the United States from 2004 to 2021,and uses the stochastic frontier gravity model and the trade inefficiency model to empirically analyze the impact of institutional differences on the trade potential of textiles and electronic information products between China and major countries in Europe and the United States,and first divides institutional differences into formal institutional differences(political institutional distance and economic institutional distance)and informal institutional difference(cultural distance).Based on the perspective of import and export trade,this paper compares and analyzes the heterogeneity of the impact of formal institutional differences and informal institutional difference on the trade potential of textiles and electronic information products between China and major European and American countries.The research results show that the formal institutional differences have inhibitory effects on the trade potential of textile,clothing and electronic information products between China and major European and American countries.And compared to textile products,formal institutional differences have a more significant inhibitory effect on the trade potential of electronic information products between China and European and American countries.The informal institutional difference has a promoting effect on the trade potential of textiles and clothing between China and major countries in Europe and the United States,while it has a inhibiting effect on China’s electronic information products.Finally,based on the above research conclusions,this paper proposes relevant countermeasures to further deepen the potential of trade cooperation between China and European and American countries.The first is to comprehensively deepen the trade integration process between China and European and American countries;the second is to strengthen China’s pivotal role in European and American markets;the third is to optimize the structure of commodity trade and achieve the upgrading of industrial structure;the fourth is to accelerate the construction of a new dual circulation development pattern and a unified domestic market,Ensuring the safety of the industrial chain while taking into account trade efficiency.