Research on China-Singapore trade relation under the strategy of “the Belt and Road Initiatives”

With the acceleration of the ASEAN integration process, trade exchanges be-tween China and ASEAN countries have become increasingly close. Cointegration and Granger causality were used to discuss the relationship between Singapore’s FDI to China in this paper and Singapore’s exports and imports to China. Data from 1984 to 2018 was taken to test whether Singapore’s FDI to China is the Granger reason of Singapore’s imports to China, and the long-term and short-term effects are inconsistent: short-term has negative effects, with long-term being positive effects. Singapore’s imports to China have a short-term Granger positive effect on Singapore’s exports to China, and Singapore’s exports to China have a long-term Granger negative effect on Singapore’s imports to China.