The Influencing Factors of Tobacco Trade Flow Between China and RCEP Countries

Abstract

Against the background of the establishment of RCEP, and based on the trade data from 2002 to 2018, this paper studies the current situation of tobacco trade in China, builds a trade gravity model, and analyzes the correlation between China's tobacco trade flows with its RCEP partners. Different factors include economic, demographic, geographical and tariff factors. According to the results of the research, RCEP member states can take advantage of population and geographical distance to strengthen mutual influence and penetration of tobacco culture, upgrade logistics infrastructure, and make targeted concessions on tobacco tariff rates to promote the development of tobacco trade within the region.