Construction of the Belt and Road Trade Cooperation Network from the Multi-Distances Perspective

Based on the cooperation network formation theory, a Belt and Road trade cooperation network was constructed from the multi-distances perspective under the backdrop of the Belt and Road initiative. The geographic, factor endowment, cultural, and institutional distances were selected as variables from the aspects of geography, economy, culture, and politics to expand the gravity model. With this model, an empirical test was conducted using the data from China's export trade flows to Belt and Road countries from 2007 to 2016. The results showed that a Belt and Road country had greater trade flows from China when it had smaller geographic, factor endowment, and cultural distance and greater institutional distance from China. Based on the empirical results, we improved the comprehensive index method to measure the comprehensive distance indices between China and the Belt and Road countries. According to the comprehensive distance indices, these countries could be divided into four cooperation circles, in which the prioritized countries in the different phases were identified. Subsequently, the cooperation network construction was designed in four stages to gradually build an all-round, multi-level, and all-encompassing trade cooperation network between China and the Belt and Road countries. Eventually, based on the above consideration, policy suggestions are provided for the construction of such a network.