The Border Effect in the Chinese Cycle Market：Empirical Evidence from Gravity Model

• Main Authors: Li-Jung Tsai, 蔡立蓉
• Other Authors: Yo-Yi Huang
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/44060019705137352005

碩士 === 國立臺灣海洋大學 === 應用經濟研究所 === 94 === As global trade barriers are being steadily dismantled and economies are becoming increasingly integrated, national borders continue to be important obstacles in international trade volumes. This paper applies a gravity model to analyze the border effect in the Chinese Cycle Market, including Taiwan, Hong Kong and Mainland China for the era after 1980. The major findings are as follows: (1) Firstly, the border effect in the Chinese Cycle Market exists statistically after 1980. This result indicates to some extent that the trade flows within the Chinese circle market is far above the normal level implied by their corresponding economic conditions and the geographical relationship, and interregional trade flows within the Chinese Cycle Market is more intense than international trade. (2) The trend of industrial interaction between Taiwan and Mainland China may cause the border effect becomes more significant, and reflecting the trade ratio within the Chinese Cycle Market is more than the rest of the world. (3) The Chinese Cycle Market with Asia, North America, and Europe has a highly mutual economic and trade dependency relationship.