Research on the Impact of Infrastructure Construction on Bilateral Trade between Middle East and Central Asia Countries

Abstract

The infrastructure can effectively help countries achieve the following goals. First at all, it can effectively reduce the transaction cost of the target country, thus contributing to market integration within the country and helping it integrate into the world economic system. Secondly, infrastructure construction can effectively improve people's living standards within a country. Thirdly, infrastructure construction can promote the industrial integration of target countries within a certain range, promoting the development of industrial clusters within the region, improve production efficiency, and promote economic development. Then, specific trade relations between countries with different income levels promote the clarification of the positioning of the industrial division of labor. Middle East and Central Asian countries still have problems such as weak infrastructure construction, uneven development, and poor terms of trade. To sum up, based on the actual situation of Middle East and Central Asian countries, this paper analyzes the different roles played by each country in regional economic integration and industrial division of labor based on the infrastructure level through the empirical research of the gravity model. To explore the construction of infrastructure in Central Asian countries to improve the development of the economy, improve people's living standards, promote the efficiency of trade construction, and provide a useful reference for the layout of infrastructure construction in the Middle East and Central Asian countries.