摘要
Introduction:Economic ties and trade blocs increase the flow of trade between participating countries and lead to different levels of economic and structural changes.Case description:This paper focuses on the structure of industrial value-added between China and Pakistan,as the two countries recently launched the CPEC(China-Pakistan Economic Corridor)project.Discussion and evaluation:This study utilizes panel data from 1995 to 2015 to test certain factor effects on regional value-added through econometric analyses.The results show that each country has its own economic growth rate and market size that respond differently to industrial value-added production.Conclusion:Aggregate factor productivity at China is higher than in Pakistan but growth in factor productivity in the latter is higher than the former;similarly,the share of bilateral trade is higher in the case of Pakistan.Although each country responds differently to the new economic ties,the macroeconomic results support bilateral economic ties between them.
