The Key Driving Forces for Geo-Economic Relationships between China and ASEAN Countries

Shufang Wang,Xiao Xue,Axing Zhu,Yuejing Ge

doi:10.3390/su9122363

Abstract

With the rise of China and the implementation of the “21st Century Maritime Silk Road” strategy, research on geo-economics between China and ASEAN (Association of Southeast Asian Nations) countries has become increasingly important. Current studies mainly focus on influencing factors, while there is little consideration about how these influencing factors act on geo-economic relationships. Therefore, this paper explores the key driving forces for geo-economic relationships between China and ASEAN countries by use of the structural equation modeling based on Partial Lease Squares. There are three main findings: (1) Economic factors have the greatest impact on geo-economic relationships and the total path effect is 0.778. Geo-location, geopolitics and geo-culture act on geo-economic relationships directly and indirectly. Their total path effects are 0.731, 0.645 and 0.513, respectively. (2) Indirect effects of geo-location, geopolitics and geo-culture impacting geo-economic relationships are far greater than direct effects. Geo-culture, in particular, has a vital mediating effect on geo-economic relationships. (3) Economic drivers promote geo-economic relationships through market, industrial policy, technical, network and benefit-sharing mechanisms. Political drivers improve geo-economic relationships through cooperation, negotiation, coordination and institutional mechanisms. Cultural drivers enhance geo-economic relationships through transmission mechanism. Location drivers facilitate geo-economic relationships through selection mechanism. We provide new insights on the geo-economic relationships through quantitative analysis and enrich the existing literature by revealing the key driving forces and mechanisms for geo-economic relationships.

Highlights

With the rise of China and the implementation of the “21st Century Maritime Silk Road” strategy, research on geo-economics between China and ASEAN countries has become increasingly important
To better understand driving forces and mechanisms, we explore the ways by which these influencing factors act on geo-economic relationships between China and ASEAN countries using structural equation modeling based on Partial Least Squares
CoTnhcilsurseisoenasrch was primarily motivated by the lack of attention on how influencing factors act on geo-eTcohnisormesicearerclahtiwonashpiprism, warhiliychmleoatidvsatoedblbinydthceomlacpketoitfioatnteonftgioeno-oencohnoowmicnfalcuteonrscianngdfaimctporesdaecsttohne sguesot-aeicnoanbolemdiecvreelloaptimonensht iopfsg, ewoh-eicohnloemadicsstboebtwlinedenccoomupnetrtietiso. nThoefrgefeoor-ee,cboynoumseicofascttrourcstuanradl eimqupaetdioens the sustainable development of geo-economics between countries

Summary

Introduction

With the rise of China and the implementation of the “21st Century Maritime Silk Road” strategy, research on geo-economics between China and ASEAN countries has become increasingly important. ASEAN countries are a priority for China to experiment with the Maritime Silk Road policy and develop geo-economics by way of industrial cooperation, RMB internationalization, energy resource development, and the Economic Cooperation Framework Agreement [2,3]. In this context, it is vital to sort out influencing factors and explore the key driving forces and mechanisms for geo-economic relationships between China and ASEAN countries

Methods

Results

Conclusion