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The Key Driving Forces for Geo-Economic Relationships between China and ASEAN Countries

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  • Shufang Wang

    (Research Center for Energy Economics, School of Business and Administration, Henan Polytechnic University, Jiaozuo 454000, China
    Geo-studies Center, Beijing Normal University, Beijing 100875, China)

  • Xiao Xue

    (College of Computer Science and Technology, Henan Polytechnic University, Jiaozuo 454000, China)

  • Axing Zhu

    (Department of Geography, University of Wisconsin-Madison, Madison, WI 53706, USA)

  • Yuejing Ge

    (Geo-studies Center, Beijing Normal University, Beijing 100875, China
    Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

Abstract

With the rise of China and the implementation of the “21st Century Maritime Silk Road” strategy, research on geo-economics between China and ASEAN (Association of Southeast Asian Nations) countries has become increasingly important. Current studies mainly focus on influencing factors, while there is little consideration about how these influencing factors act on geo-economic relationships. Therefore, this paper explores the key driving forces for geo-economic relationships between China and ASEAN countries by use of the structural equation modeling based on Partial Lease Squares. There are three main findings: (1) Economic factors have the greatest impact on geo-economic relationships and the total path effect is 0.778. Geo-location, geopolitics and geo-culture act on geo-economic relationships directly and indirectly. Their total path effects are 0.731, 0.645 and 0.513, respectively. (2) Indirect effects of geo-location, geopolitics and geo-culture impacting geo-economic relationships are far greater than direct effects. Geo-culture, in particular, has a vital mediating effect on geo-economic relationships. (3) Economic drivers promote geo-economic relationships through market, industrial policy, technical, network and benefit-sharing mechanisms. Political drivers improve geo-economic relationships through cooperation, negotiation, coordination and institutional mechanisms. Cultural drivers enhance geo-economic relationships through transmission mechanism. Location drivers facilitate geo-economic relationships through selection mechanism. We provide new insights on the geo-economic relationships through quantitative analysis and enrich the existing literature by revealing the key driving forces and mechanisms for geo-economic relationships.

Suggested Citation

  • Shufang Wang & Xiao Xue & Axing Zhu & Yuejing Ge, 2017. "The Key Driving Forces for Geo-Economic Relationships between China and ASEAN Countries," Sustainability, MDPI, vol. 9(12), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2363-:d:123419
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    References listed on IDEAS

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    Cited by:

    1. Nguyen, Hong-Kong T. & Vuong, Quan-Hoang & Ho, Tung Manh & Vuong, Thu-Trang, 2018. "The “same bed, different dreams” of Vietnam and China: how (mis)trust could make or break it," OSF Preprints khtn5, Center for Open Science.
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    3. Naixia Mou & Caixia Liu & Lingxian Zhang & Xin Fu & Yichun Xie & Yong Li & Peng Peng, 2018. "Spatial Pattern and Regional Relevance Analysis of the Maritime Silk Road Shipping Network," Sustainability, MDPI, vol. 10(4), pages 1-13, March.

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