Study on the Trade Potential and Influencing Factors between China and South Asian Countries

Abstract

On the basis of consulting and analyzing a large number of domestic and foreign trade potential literature, this paper used empirical analysis to measure the trade potential index between China and South Asian countries. The results showed that the trade potential index between China and South Asian countries was different, and the trade potential index of Bangladesh and Nepal was less than 1, which belonged to the trade shortage type countries. The trade potential indexes of Pakistan, Bhutan, Sri Lanka and India were greater than 1, which belonged to the type of excessive trade type. The influence factors between China and South Asian countries were analyzed by using the improved gravity model. The results showed that China’s per capita GDP, the proportion of Internet users, the member countries of the World Trade Organization had a significant positive impact on the import and export volume, and the distance between the two countries, the export cost of 20 feet container, the export time, and the cost of the court resolving the dispute over the sale of goods had a significant negative impact on the total import and export volume.