CHINESE ECONOMY, vol.55, no.1, pp.26-40, 2022 (Scopus)
The
purpose of this study is to analyze the trade between China and 97 countries
that have an important place in the bilateral trade of China in the period of
2008-2019 with the extended gravity model and to determine the determinants of
trade. In the study, the potential impact of ASEAN and APEC member countries on
Chinese trade was investigated, apart from the per capita incomes, populations
and distances of the countries. In addition, the effect of energy imports
required for industrial production on Chinese exports is also analyzed as
another dummy variable for OPEC countries. Empirical results show that the GDP
and population growth of dependent and independent countries are positively
affected by trade, and as the distance increases, trade is negatively affected.
The dummy coefficients of ASEAN, APEC and OPEC show that they are positive and
statistically significant. Due to the fact that ASEAN and APEC consist of Asian
countries and therefore are close to China, it has been observed that they are
compatible with gravity model theory. The positive effect of OPEC member
countries on Chinese exports was determined as importing the energy required
for industrial production and converting intermediate goods into value-added
products and exporting.