Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 287

Full Length Research Paper

A research on the gravity model of China’s oil trade in the strategic context of “One Belt One Road”

Guo Xiaopeng
  • Guo Xiaopeng
  • Research Center of Energy and Economic Management, Xi 'an University of Science and Technology, Xi'an, China.
  • Google Scholar
Zhang Jinsuo
  • Zhang Jinsuo
  • School of Economics and Management, Yan 'an University, Yan'an, China.
  • Google Scholar
Xue Jian
  • Xue Jian
  • School of Economics and Management, Shaanxi University of Science and Technology, Xi'an, China.
  • Google Scholar
Yan Tingxing
  • Yan Tingxing
  • College of International Education (Silkroad College of Energy), Xi'an Shiyou University, Xi'an, China.
  • Google Scholar


  •  Received: 20 July 2017
  •  Accepted: 25 September 2017
  •  Published: 30 November 2017

Abstract

With the increasing energy demand along with China’s economic development, the external dependence on China’s oil supply keeps rising. In the foreseeable future, China’s oil trade will still center on importing. Under the background of China’s “One Belt One Road” strategy, the essay establishes a trade gravity model for oil importing trade in China. Through multiple linear regression analysis and empirical study, the key elements in China’s oil importing trade are summed up. From the data of 10 countries selected, Phase 1 (2008 to 2012) and Phase 2 (2013 to 2015) results revealed that with the deepening of the OBOR strategy, China's oil import source countries are changing; the countries  on the "One Belt One Road" are becoming China's main sources of oil import. Conversely, China’s imported oil from Saudi Arabia declines by nearly 36% over the same period. Also, the essay puts forward suggestions to advance the oil trade between China and other countries on the One Belt One Road.
 
Key words: The One Belt One Road strategy, oil trade, trade gravity model.