Analysis of China’s comparative advantage and influencing factors in e-commerce trade

Abstract

This paper conducts an in-depth study of the factors influencing China's e-commerce comparative advantage within the context of international trade. By analyzing these factors, the research aims to provide valuable insights for policymakers to refine their strategies and offer information on trade, market structure, and technological innovation to the international community. The study employs Walter Isard's (1954) gravity model of trade as the theoretical framework. It examines the trade export volumes between China and its key trading partners Thailand, Laos, Vietnam, and Singapore using these volumes as the dependent variable. The analysis is based on annual data from 2000 to 2022, allowing for a comprehensive exploration of the determinants of trade and the mechanisms underlying bilateral trade relationships between China and these five partner countries. This research is of significant strategic and policy relevance, as it enhances understanding and optimization of bilateral trade relations. Moreover, the findings are expected to guide policy decisions and foster economic cooperation, while offering new perspectives and research directions for academia. The outcomes will provide valuable references for the development and practice in related fields.