Why Has China's Trade Grown So Fast? A Demand-Side Perspective

Xiaoyun Liu () and Xian Xin

Emerging Markets Finance and Trade, 2011, vol. 47, issue 1, 90-100

Abstract: China's share of global trade has experienced rapid growth in the past three decades. Taking a demand-side perspective, this paper investigates the causes of this rapid growth by decomposing China's trade growth into preference changes, income growth, and other factors. The results indicate that preference changes explain 35.8 percent of export growth and 41.9 percent of import growth over the period. Income growth (excluding convergence) explains a further 28.4 percent and 27.1 percent, respectively, of export and import growth, respectively. In addition, income convergence further contributed about 24 percent and 11.3 percent, respectively, of export and import growth, respectively. These results are generated using a multiregional numerical general equilibrium model of the global economy involving major trading blocs and are calibrated to both 1975 and 2004 data.

Keywords: China; multiregion general equilibrium model; preference changes; trade growth (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=50457R6X1T143643 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:47:y:2011:i:1:p:90-100

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().