Research on the Economic Effect of “Polar Silk Road” on China and Arctic Countries Based on GTAP Model

Abstract

The accelerated melting of sea ice in the Arctic makes the potential value of the Arctic increasingly significant. The exploitation and utilization of the “Polar Silk Road” has important influence on the economic cooperation between China and the Arctic countries along the “Polar Silk Road”. This paper uses GTAP model to simulate and analyze the economic and trade impact of the “Polar Silk Road” on the Arctic countries along the “Polar Silk Road” and China. The results show that the construction of “Polar Silk Road” will have a positive impact on the import and export trade between China and Canada, USA and some Nordic countries, and the GDP and trade structure within the region. China should seize the opportunity to expand the width of “Polar Silk Road” and and further promote the construction of the “Polar Silk Road”.