Impact of China's Trade Structure on Trade Flow

On the basis of introduction to China's trade structure,this paper studies the relation between China's bilateral trade flow and trade structure with 40 important trade partners in a framework of the gravity model over the period 2004-2008,and explores the decisive factors of China's trade flow.The empirical results show that the extended gravity model can explain China's bilateral trade flow effectively and the estimated variable coefficient of China's trade structure is negative,which means that China's trade structure and trade flow is negatively correlated,or China's trade structure restricts the expansion of trade flow,and the model of monopolistic competition and increasing return to scale,rather than the model of factors,is more applicable to the explanation for China's trade mode.