Abstract
An important development of the One Belt One Road Initiative (OBOR) is to promote qualitative improvements in trade and trade regulation among participating countries. This paper provides an analysis of bilateral trade between China and Kazakhstan, covering a period of time from 2002 to 2017 and divided into major trade categories. The main purpose of this work is to review the bilateral relations between Kazakhstan and China and determine the development of trade at the initial stage of the OBOR project. To solve this problem, two analyses were chosen and, the results of this analysis may show an increase in trade turnover in those product categories that were previously stated in the project. Firstly, in order to investigate the gap of intensity, and extensity bilateral trade positions used the Hummels-Klenow indices for export margins of trade. Secondary to assess the relationship at the intra-industry level used analysis of the intra-industry trade (IIT) activities developed by Grubel and Lloyd. The empirical analysis of the IIT index is represented as partially balanced. China’s performance was analyzed as intensive in the main elected categories such as the increase in the export intensity of trade in large volumes in product categories. The development of the project is confirmed by a numerical increase in interest in the categories stated in the project earlier.
Highlights
IntroductionOne Belt One Road Initiative (OBOR) was presented by the Chinese state to improve trade ties and establish long-term political and economic relations
Authors believe that the development of One Belt One Road Initiative (OBOR) between the countries of participants will help the qualitative improvement of trade and probably trade regulation (OECD, 2018)
The objective of the paper is to examine the current trade patterns of bilateral trade of China with Kazakhstan during the period 2002-2017, under OBOR initiative by focusing on intra-industry trade and export margins of trade and decided to consider the data in the full period and in different periods to identify the potential development of the OBOR project in the selected categories
Summary
OBOR was presented by the Chinese state to improve trade ties and establish long-term political and economic relations. It is concentrated to connect the Asian, European, and African regions. This project is represented by real and planned agreements. The cooperation under this project resonates in Kazakhstan’s scientific literature as having a positive impact on the overall cost of foreign trade between China and the participating countries. There is a possibility of new trade relations between the countries under consideration (JSC Samruk-Kazyna, 2017). Authors are given the opportunity to consider the trade relations between China and Kazakhstan under the project OBOR. This work basis on the preceding years that give the possibility of the initial analysis of the effectiveness of OBOR and the trade flows
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