Research on how trade facilitation affects export technology complexity geographically in B&R countries

Abstract

In the face of a harsh and complicated international environment, as well as the continuous rise in global trade protectionism, the B&R Initiative provides countries along its path with a vital spatial path and opportunities for collaboration. This research uses the geographic Durbin model and the spatial error model from both static and dynamic perspectives from 2008 to 2020 to evaluate the spatial impact of trade facilitation on the export technological complexity of the countries along the B&R Initiative. The results show that, although the effect of trailing one period is not as substantial, the degree of trade facilitation of the nations along the B&R Initiative positively influences the level of export technology complexity, providing a considerable spatial spillover effect. The impact of trade facilitation level on export technology complexity is significantly influenced by trade costs; the impact of trailing one period is not apparent; and the overall performance of the impact effect of different trade facilitation level sub-indicators and different regions is robust. Therefore, it is critical to maintain pressure for the implementation of the Belt and Road Initiative and to use regional spatial links and the multilateral trading system to coordinate trade agreements.