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Academic Journal of Business & Management, 2024, 6(7); doi: 10.25236/AJBM.2024.060738.

System construction and practice test of trade circulation theory—Based on the critique of the conjugate circulation theory

Author(s)

Liuyue Jiang1,2, Mengjie Chen1

Corresponding Author:
Liuyue Jiang
Affiliation(s)

1Department of International Economics and Trade, Ningbo Tech University, Ningbo, 315000, China

2Ningbo First-class Port and New Trade Research Base, Ningbo, 315000, China

Abstract

The theory of trade circulation refers to the analysis of the circulation path and mechanism of global trade flows, revealing the exchange mode of goods and services between different countries and regions and its influencing factors. The theory focuses on the role and effect of trade in the global economy, and discusses how trade affects national economy, industrial structure and global economic order through various channels. It is of great guiding significance for international trade policies, development strategies and economic growth patterns. This study discusses the applicability and effectiveness of trade circulation theory in the context of global economy, analyzes its core concepts, basic assumptions and theoretical framework, and finds that trade circulation theory can effectively explain complex phenomena and dynamic changes in global trade, and provide theoretical support for optimizing trade policies and promoting international cooperation. Through the discussion of conjugate circulation theory and two-way convection model, the characteristics and challenges of trade under different economic systems and market conditions are revealed, and the reference for formulating flexible and effective trade policies is provided. This paper also analyzes the transformation and development of the Hong Kong Free Trade Area, explains the practical significance of the application of the theory, and emphasizes the importance of in-depth understanding and application of the trade circulation theory under the background of globalization and economic change.

Keywords

Trade circulation theory; Conjugate circulation theory; Global trade

Cite This Paper

Liuyue Jiang, Mengjie Chen. System construction and practice test of trade circulation theory—Based on the critique of the conjugate circulation theory. Academic Journal of Business & Management (2024) Vol. 6, Issue 7: 276-282. https://doi.org/10.25236/AJBM.2024.060738.

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