TITLE:
Kazakhstan in China’s Belt and Road Initiative: An Empirical Analysis of Extensive and Intensive Margins of Trade
AUTHORS:
Dechun Huang, Mariya Yenina, Md. Ekram Hossain
KEYWORDS:
One Belt One Road Initiative, Trade Margins, Intra-Industry Trade Index, China-Kazakhstan Cooperation
JOURNAL NAME:
Chinese Studies,
Vol.10 No.1,
December
16,
2020
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.