A Study of the Impact of Chinese Aid to Cambodia on Bilateral Trade

Abstract

Since the "Belt and Road" initiative was put forward, the scale of China's foreign aid has grown rapidly and the scope of radiation has been expanding. Foreign aid has become one of the tools of China's foreign relations that cannot be ignored, and it is especially important to study the bilateral trade effects brought by foreign aid. This paper mainly selects the impact of China's aid to Cambodia on bilateral trade for research. This study adopts the trade gravity model, introduces GDP and population size as control variables, and conducts regression analysis on the amount of China's aid to Cambodia and bilateral trade over the years, and concludes that China's aid to Cambodia helps to promote bilateral trade.