A Study of Bilateral Trade Potential and Efficiency of Italy and China & Outlook of the ‘the Belt and the Road’

Authors

  • Wu Liang, Yang Zhenhua, Li Huijuan, Wei Shuhang

Abstract

The paper is based on the situation of the bilateral trade between China and Italy. Lafay index is used to prove the trend in Trade mutual complementary. Panel data of 40 trade partners between China and Italy between 2008 and 2017 are selected to establish time-varying stochastic frontier gravity model and non-efficiency model to calculate the export trade growth space. Key elements influencing the bilateral trade are analyzed. The importance of “One Belt One Road” policy on both countries is also discussed. Research suggests that the export efficiency between China and Italy is not so efficient as expected, thus leaving a lot of room for the export potential. Both countries need to deepen the cooperation to create the win-win situation based on the One Belt One Road policy.

Published

2020-12-01

Issue

Section

Articles