Open AccessAn analysis of trade cooperation: Central region in China and ASEAN
Author(s) -
Roni Bhowmik,
Zhu Yiyun,
Kuo Gao
Publication year - 2021
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0261270
Subject(s) - international trade , dynamism , gravity model of trade , bilateral trade , china , economic integration , complementarity (molecular biology) , trade barrier , international free trade agreement , revealed comparative advantage , index (typography) , comparative advantage , economics , international economics , business , geography , physics , archaeology , quantum mechanics , biology , world wide web , computer science , genetics
China-ASEAN are the two huge markets in trade world, they can bring out greater dynamism from within their economies and contribute to regional economic development. This study explores the present situation on the trade between the Central region of China and ASEAN through empirical assessment and try to find the potential effects and trade flows between them. Firstly, we analysis the trade integration index, HM index, explicit comparative advantage index, and trade complementarity index. Finally, we use the gravity model of international trade and data on 2006–2018. The bilateral trade relations between the central region and ASEAN are getting closer, but the central region has not yet become the major trade area of ASEAN countries in the Chinese market. The bilateral economic development level plays a positive role in promoting the export trade between the Central region and ASEAN, while the bilateral distance plays a negative role in difficulty. The empirical results show that trade potential between the Central region and Indonesia and the Philippines is huge, and there is still opportunity for the development of the trade potential with Thailand. The trade prospective with Malaysia, Singapore and Vietnam is limited, and new approaches need to be developed to achieve further trade cooperation.