 Decomposing China’s bilateral export growth: A firm-regional-transactions structural gravity approachPeter Egger, Jie Li and Han Wu European Economic Review, 2024, vol. 164, issue C Abstract: This paper undertakes a decomposition of China’s firm-transaction-level exports with an emphasis on aggregates thereof at the prefectural level. Chinese prefectures are large and, relative to some smaller countries, the larger ones are visible players in the world market. We decompose China’s prefecture-product-level bilateral exports to foreign countries into their main components. These are factor costs, market potential (including trade frictions and foreign expenditure) as well as quality and productivity. We consider the latter two as to be drawn from a bivariate Pareto distribution that is specific to prefectures, products, and countries. This strategy enables retrieving fixed market access costs and permits conducting counterfactual experiments with a focus on the distribution across Chinese prefectures. Keywords: Gravity model; Bilateral export patterns; Specialization; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:164:y:2024:i:c:s0014292124000473 DOI: 10.1016/j.euroecorev.2024.104718 Access Statistics for this article European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer More articles in European Economic Review from Elsevier |
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