Trade effect analysis of the ‘one belt and one road’ Economic Zone Construction
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| Title | Trade effect analysis of the ‘one belt and one road’ Economic Zone Construction
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| Author | Wang Jue and Feng Zongxian |
| Organization | Xi’an Jiaotong University |
| Email | 西安交通大学经济与金融学院 |
| Key Words | ‘One Belt and One Road’ Construction; Trade Effect; Trade Cost; Global Gravity Model |
| Abstract | This paper analyzed the trade effects of China’s ‘one belt and one road’ regional cooperation by theoretical model analysis and numerical simulation. Based on the New Economic Geography research paradigm, we draw a global gravity model which contained the interaction among all regions by solving the general equilibrium. And we simulated the model by using the 1993-2014 trade data of ‘one belt and one road’ region and two distance measuring methods. The results shown that the trade of ‘one belt and one road’ region can be explained by global gravity model, the trades between any two sub-regions will be affected by other regions’ ‘gravity’. Accompany with the regional cooperation process, when the trade costs between China and one sub-region reduces, the different trade diversion effects will take place on other sub-regions. Thus, these impacts of regional linkage should be noted during the ‘one belt and one road’ regional cooperation. |
| Serial Number | WP994 |
| Time | 2015-12-18 |
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