The impact of trade facilitation on cross-border e-commerce exports of China-based on the gravity model

Name: Liang, Yuan

keyword: Trade facilitation

; Cross-border e-commerce

; International trade

Abstract: Trade facilitation has become an important issue faced by all countries to ease bureaucratic delays and red tape of cross-border transport. This paper introduces the progress of trade facilitation and the existing problems in China’s cross-border e-commerce. Then, it describes the influence of trade facilitation on cross-border e-commerce in terms of the system of assessment. The paper also develops the trade facilitation variable from five primary indicators and thirty-one secondary indicators in the WEF Global Competitiveness Report. The five primary indicators are political environment, legal environment, infrastructure, custom environment, and technology readiness. According to trade facilitation indicators (TFI), it quantifies trade facilitation in China and its trading partners. Third, it refers to Anderson & Van Wincoop(2003)’s gravity model, which considers the multilateral resistance terms ignored by the traditional gravity model. It establishes the gravity model to study TFI’s impact on China's cross-border e-commerce exports. Cross-border e-commerce export is the explained variable, while the GDP, population, exchange rate, and distance are the explanatory variable with other controlled variables. According to the World Bank standard, the paper categorizes trading partners into three types of economies. They are high-income, upper-middle-income, and lower-middle-income economies. It analyzes the impact of their TFI’s five primary indicators on China’s cross-border exports. Besides, the paper uses OLS and Poisson Pseudo-Maximum Likelihood estimation for regression, which can directly estimate the gravity model in nonlinear form and (2) eliminate the heterogeneity. The empirical result shows that China’s cross-border e- commerce exports have been significantly affected by trade facilitation. Moreover, it has been affected mostly by high-income and lower-middle-income countries' customs environment. As for the upper-middle-income countries, its infrastructure has the most significant impact on the trade flows. Finally, it makes policy recommendations on the aspects of TFI that should be prioritized to countries

Thammasat University. Thammasat University Library

Address: BANGKOK

Email: preserv@tu.ac.th

Name: Monthien Satimanon

Role: advisor

Created: 2020

Modified: 2023-01-27

Issued: 2023-01-27

วิทยานิพนธ์/Thesis

application/pdf

DOI: 10.14457/TU.the.2020.835

eng

DegreeName: Master of Economics

Level: Master's Degree

Descipline: Economics

Grantor: Thammasat University

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