Neighbors Gain Trade Advantage as Distance Loses Significance
The article examines what drives trade between countries. Researchers used a model called the gravity model to study factors like culture, distance, and costs affecting international trade. Key findings reveal that cultural similarities and specific economic factors significantly impact China's trade with other nations. China exhibits strong export potential, especially in certain product categories. They also noted that as time passes, distance plays a decreasing role in influencing trade, contributing to a better understanding of globalization trends. Finally, the study highlights the substantial impact of transport costs on trade flows in Northeast Asia over a 16-year period.