Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders

Zhigang Li (zli.economics@gmail.com), Xiaohua Yu, Yinchu Zeng (zengyc@ruc.edu.cn) and Rainer Holst

China Economic Review, 2012, vol. 23, issue 4, 1003-1010

Abstract: Using a unique survey data on agricultural traders in China in 2004, this study provides direct evidence on the significance of inter-regional trade barriers and their key components. Our major findings are as follows. (1) The trade barriers within China are fairly small, accounting for about 20% of trade value. (2) Transport and non-transport costs respectively contribute 42% and 58% to the trade barriers. (3) Labor and transport-related taxes are the two largest proportions of total transport costs, and respectively account for 35% and 30%. (4) Artificial trade barriers created by the government are not sizable as we perceived. (5) Road quality is crucial for reducing transport costs within China: increasing transport speed by 1km per hour, the total transport costs for Chinese agricultural traders would decrease by 0.6%, mainly due to improved fuel-burning efficiency and reduced labor requirement.

Keywords: Transport costs; China; Agricultural traders; Infrastructure (search for similar items in EconPapers)
JEL-codes: L91 N7 Q13 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (14)

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Working Paper: Estimating transport costs and trade barriers in China: Direct edvidence from Chinese agricultural traders (2012)
Working Paper: Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:23:y:2012:i:4:p:1003-1010

DOI: 10.1016/j.chieco.2012.05.001

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