Empirical Research on Interaction between Logistics Industry, Domestic Trade, and Foreign Trade in the Chinese Context

Abstract

In this paper, the long-run dynamic relationship of logistic industry with domestic and foreign trade in China is examined with Unrestricted Vector Auto regression model, Vector Error Correction model and Impulse Response Function. The empirical study shows that only one reliable co integration relationship exists between them; The promoting effects on domestic and foreign trade by the development of logistics industry is long-term and continuously stable, as well there are certain linkage mechanisms between logistics industry, domestic trade and foreign trade; The pushing effect of domestic trade upon the development of logistics industry is far more greater than that of foreign trade; The linkage mechanism between logistics industry and domestic trade acts more efficiently.