Relationship assets and ChinaAfrica trade:empirical study based on panel data of 40 countries(PDF)
《长安大学学报（社科版）》[ISSN:1671-6248/CN:61-1391/C]
- Issue:
- 2020年06期
- Page:
- 10-23
- Research Field:
- 国际经济与贸易
- Publishing date:
Info
- Title:
- Relationship assets and ChinaAfrica trade:empirical study based on panel data of 40 countries
- Author(s):
- SUN Zesheng1; YU Shiwei1; 2
- 1. School of Finance and Business, Shanghai Normal University, Shanghai 200234, China; 2. Fenkou Branch, Chun’an Rural Commercial Bank, Chun’an 311719, Zhejiang, China
- Keywords:
- relationship asset; ChinaAfrica trade; relationship investment intensity; tariff reduction and exemption; Confucius Institute; WTO; BRICS; finished product export; relationship duration; Panel Corrected Standard Error Model
- PACS:
- F742
- DOI:
- -
- Abstract:
- Whether the long-term friendly ChinaAfrica relations can produce trade promotion effect is the main support for the sustainability of their bilateral diplomatic ties and their respective ability to cope with external shocks. Based on the relatively homogeneous diplomatic relationship asset background between China and Africa, this paper utilizes the duration of political relations with weakpunishment and strongpunishment mechanism, and uses the investment intensity variable measured by the level of diplomatic ties, so as to overcome the endogenous problems between diplomatic activities and trade and incorporate the impact of conflict force on the bilateral relations. Using the trade data of 40 African countries from 2001 to 2017, this paper constructs a Panel Corrected Standard Error Model (PCSE) to examine whether the ChinaAfrican relationship assets have promotion effect on bilateral trade and trade in primary and manufactured goods. It is found that, relationship assets significantly promote ChinaAfrican trade, but there are two opposite mechanisms of relationship assets affecting trade, i.e., the trade promotion effect of relationship duration as nonpure public goods, and the trade dilution effect of relationship assets on largerscale economies. China’s economic growth plays a relatively strong driving role in the bilateral export trade, and China’s tariff reduction and exemption policies towards African countries can significantly promote bilateral trade with the characteristics of reciprocity, but differential impact on subcategories exist. China and African countries should join forces to increase relationship investment intensity in order to further give play to the effect of inertia and the trade promotion effect of bilateral relations, and use trade to facilitate and support the development of the comprehensive ChinaAfrica strategic partnership.
Last Update: 2021-01-29