The Influence of Trade Facilitation on the Depth and Breadth of China's Agricultural Exports: Empirical Evidence Based on RCEP Countries

Abstract

This article analyzes how trade facilitation influence China’s agricultural exports to RCEP partners. Based on the data of the World Economic Forum Global Competitiveness Report and principal component analysis, we constructs a 14 index system to measure trade facilitation. Based on the export data from 2011 to 2019, the extended gravity model is used to estimate the relationship between trade facilitation and the depth and breadth of China's agricultural exports. The study shows that improving the trade facilitation of RCEP partners can significantly enhance the depth of China's agricultural exports. Specifically, the trade openness, e-commerce and financial environment of importing countries have a significant positive impact on the depth and breadth of exports. Another important finding is that China's trade facilitation has played a more active role in the depth and breadth of exports. Its infrastructure quality, e-commerce and financial environment can greatly promote China's agricultural exports.