Global Production Networks and the People’s Republic of China’s Processing Trade

Alyson C. Ma, Ari Van Assche and Chang Hong

Working Papers from eSocialSciences

Abstract: This paper unveils a systematic pattern in the People’s Republic of China’s (PRC) processing trade. In a cross-section of the PRC’s provinces, the average distance traveled by processing imports (import distance) is negatively correlated with the average distance traveled by processing exports (export distance). To explain this pattern, we set up a three- country industry-equilibrium model in which heterogeneous firms from two advanced economies. [ADBI Working Paper 175]

Keywords: People’s Republic of China; imports; industry-equilibrium; model; advanced; economies (search for similar items in EconPapers)
Date: 2010-10
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