Empirical Study on the Change and Impact of Bilateral Trade Costs in China

Trade cost is one of the most important factors hamper the global trade liberalization,and also a hotspots in the re search field of international trade.This paper measures the bilateral trade cost of China and its effect on the bilateral trade vol ume.The results show the downward trend of China’s bilateral trade cost with major trade partners,which is also a key factor to bilateral trade volume expansion.This paper also examines the influence of multilateral trade on bilateral trade cost,and finds that there exists trade diversion effect,but China multilateral trade do not have a negative impact on the bilateral trade.