The Impact of International Trade Development on China’s Free Trade and the Value of the Agricultural Industry Chain

Abstract

Abstract The development of international trade is both a challenge and an opportunity for China’s free trade and agricultural industry chain. Linear regression modeling is employed in this paper to examine how international trade development affects the value of China’s free trade and agricultural industry chain. The variables in the linear regression model are set, and the correlation coefficient is calculated to obtain the correlation coefficient between them. This basis is used to test the regression coefficients for significance and multicollinearity using the least squares method. The data show that the difference between the minimum value and the mean value of the free trade economy index is significant, about 0.3-0.6, while the difference between the maximum value and the mean value is slight, about 0.1-0.4, which indicates that the free trade economy of the provinces with poor free trade economy in China is much lower than the average free trade economy level in China. The degree of international trade development shows the most apparent upward fluctuation from the five quantile regressions of 0.2, 0.4, 0.6, 0.8, and 1.0, gradually increasing from a regression coefficient of 0.2428 to 1.149, which suggests that the international trade development has a significant positive effect on the change of the positional situation of the value chain of the agricultural industry. This study not only enriches the connotation of the theory of free trade and the agricultural industry chain in China but also provides reference and information for enhancing the resilience and sustainability of the development of the agricultural industry.