Research on the China’ Production Capacity Cooperation Potential of Mechanical and Electrical Equipment Products with the Countries along the “Belt and Road”

Abstract

Promoting international production capacity cooperation of equipment manufacturing can improve both the quality and efficiency of China's economy. The “One Belt and One Road”(OBOR) initiative has provided an important opportunity for China's mechanical and electrical equipment to “go global”. Based on the panel data of 51 countries along the OBOR from 2004 to 2019, a stochastic frontier gravity model is constructed to estimate the production capacity cooperation of China’s mechanical and electrical equipment products in those representative countries along the OBOR. The study found that the production capacity cooperation of mechanical and electrical equipment between China and those countries along the OBOR has continued to deepen since the OBOR initiative has been put forward and there is still great potential; however, the production capacity cooperation potential is differences in regions. When promoting the production capacity cooperation of mechanical and electrical equipment between China and those countries along the OBOR, it is very crucial to select scientific and reasonable countermeasures, they are as follows: to scientifically identify the factors affecting the production capacity cooperation, to reasonably select cooperation partners with greater potential, and choose scientific and rational strategic layout to the develop the production capacity cooperation.