Bilateral Trade Between China and Other Countries

Liwen Ma, Ali Mohsin, Haseeb Muhammad

OAI: oai:igi-global.com:303675 • DOI: 10.4018/JCAD.303675

The purpose of this study is to analyze the performance of one belt, one road in member countries in the effects of bilateral trade. The sample for this study includes 67 countries along the route for the period between 2013 and 2018. The study employs the Difference-in-Differences model in a panel data setting to do an analysis. A Parallel Trend Test is employed to test for Difference-in-Differences between the variables investigated. The results show that the “Belt and Road” initiative has had a positive impact on the bilateral trade between China and the “Belt and Road' countries along the route. China and the 67 countries along the route with different transaction potentials have different room for development. This paper focuses specifically on bilateral trade and analyses the influence of new initiative in this effort. It tests the moderating roles of new initiative in the relationship between “before 2015” and “after 2015”, concluding that new initiative enhances the effect of bilateral trade.