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Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity

Received: 30 March 2018     Accepted: 27 April 2018     Published: 18 May 2018
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Abstract

The bilateral trade flow data in this paper is a collection of the 35 countries along "The Belt and Road" from 1995 to 2014. After getting the national trade efficiency and trade potential estimation, heterogeneous panel cointegration estimation methods (FMOLS and PDOLS) are used to analyze the influencing factors of trade efficiency and trade potential from three aspects: trade diversification, trade concentration and trade complementarity index. The lower the degree of trade diversification and the higher the degree of trade centralization are, the greater the potential of the country's trade is;the lower the degree of trade diversification and the higher the degree of trade centralization are, the more trade efficiency of the country is; for the bilateral trade volume, the higher the degree of trade complementarity between the two countries is, the greater the trade potential and trade efficiency between them is.

Published in Journal of World Economic Research (Volume 7, Issue 2)
DOI 10.11648/j.jwer.20180702.11
Page(s) 44-51
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Trade Potential, Trade Efficiency, Trade Diversification, Trade Concentration, Trade Complementarity

References
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[8] K. Kalirajan. Stochastic varying coefficients gravity model: An application in trade analysis [J]. Journal of Applied Statistics, 1999, 26(2):185-193.
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  • APA Style

    Li Kexin. (2018). Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity. Journal of World Economic Research, 7(2), 44-51. https://doi.org/10.11648/j.jwer.20180702.11

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    ACS Style

    Li Kexin. Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity. J. World Econ. Res. 2018, 7(2), 44-51. doi: 10.11648/j.jwer.20180702.11

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    AMA Style

    Li Kexin. Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity. J World Econ Res. 2018;7(2):44-51. doi: 10.11648/j.jwer.20180702.11

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  • @article{10.11648/j.jwer.20180702.11,
      author = {Li Kexin},
      title = {Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity},
      journal = {Journal of World Economic Research},
      volume = {7},
      number = {2},
      pages = {44-51},
      doi = {10.11648/j.jwer.20180702.11},
      url = {https://doi.org/10.11648/j.jwer.20180702.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20180702.11},
      abstract = {The bilateral trade flow data in this paper is a collection of the 35 countries along "The Belt and Road" from 1995 to 2014. After getting the national trade efficiency and trade potential estimation, heterogeneous panel cointegration estimation methods (FMOLS and PDOLS) are used to analyze the influencing factors of trade efficiency and trade potential from three aspects: trade diversification, trade concentration and trade complementarity index. The lower the degree of trade diversification and the higher the degree of trade centralization are, the greater the potential of the country's trade is;the lower the degree of trade diversification and the higher the degree of trade centralization are, the more trade efficiency of the country is; for the bilateral trade volume, the higher the degree of trade complementarity between the two countries is, the greater the trade potential and trade efficiency between them is.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - Trade Potential and Efficiency of the Countries Along the B&R: Based on Trade Diversification, Concentration and Complementarity
    AU  - Li Kexin
    Y1  - 2018/05/18
    PY  - 2018
    N1  - https://doi.org/10.11648/j.jwer.20180702.11
    DO  - 10.11648/j.jwer.20180702.11
    T2  - Journal of World Economic Research
    JF  - Journal of World Economic Research
    JO  - Journal of World Economic Research
    SP  - 44
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    PB  - Science Publishing Group
    SN  - 2328-7748
    UR  - https://doi.org/10.11648/j.jwer.20180702.11
    AB  - The bilateral trade flow data in this paper is a collection of the 35 countries along "The Belt and Road" from 1995 to 2014. After getting the national trade efficiency and trade potential estimation, heterogeneous panel cointegration estimation methods (FMOLS and PDOLS) are used to analyze the influencing factors of trade efficiency and trade potential from three aspects: trade diversification, trade concentration and trade complementarity index. The lower the degree of trade diversification and the higher the degree of trade centralization are, the greater the potential of the country's trade is;the lower the degree of trade diversification and the higher the degree of trade centralization are, the more trade efficiency of the country is; for the bilateral trade volume, the higher the degree of trade complementarity between the two countries is, the greater the trade potential and trade efficiency between them is.
    VL  - 7
    IS  - 2
    ER  - 

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Author Information
  • Department of International Trade, Nanjing Normal University, Nanjing, China

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