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has been cited by the following article:

• TITLE: A Study of Trade Efficiency and Potentials between Jiangsu Province and the Countries along the Belt and Road Initiative

  AUTHORS: Jiayu Wang, Wen Tian

  KEYWORDS: Trade Potential, Trade Efficiency, Stochastic Frontier Gravity Model, The Belt And Road Initiative

  JOURNAL NAME: Open Journal of Social Sciences, Vol.8 No.2, February 26, 2020

  ABSTRACT: This paper applies Stochastic Frontier Analysis (SFA) to a broad data set for selected 48 countries along the Belt and Road from 2002 to 2017, and analyzes foreign trade potential and trade efficiency between Jiangsu Province and countries along the Belt and Road. The empirical analysis shows that trade efficiency of Jiangsu Province has been improved gradually year by year in general. From the view of natural factors, the research identifies market size, establishment of diplomatic relation and the bilateral geographical distance between Jiangsu Province and countries can stimulate Jiangsu Province’s foreign trade respectively. From the perspective of human factors, one-step model discovers that government efficiency, political stability and investment freedom are crucial to improving trade efficiency. However, financial freedom and the current situation of transportation infrastructures will aggregate inefficiencies to some extent. Based on these findings, the paper proposes how to expand foreign trade and improve trade efficiency between Jiangsu Province relative to countries the Belt and Road Initiative.