RAZVOJ TRGOVINE IZMEĐU NR KINE I CIE : ANALIZA UTICAJA INICIJATIVE „16+1“

The development of trade relations between the PRC of China and the 16 countries of Central and Eastern Europe (CEE) from 2000-2022 are the subject of this research. Through the application of a gravity model, the factors that directly contribute to increased trade are examined, specifically examining the impact of CEE countries' participation in the “16+1” initiative. Empirical results show economic growth in the PRC and CEE, including CEE member-state status in the EU, has had a positive significant impact on developing bilateral trade between the PRC and CEE for all total trade (TT) (when viewed as dependent variables), as well as CEE imports to the PRC (IM) and CEE exports the PRC (EX). Participation in the "16+1" initiative is found to have contributed to increased trade only when CEE exports to the PRC were the dependent variable. However, when compared to EU membership, participation in “16+1” was found to be less significant.