The missing trade of China: balls-and-bins model

Huimin Shi and Zheng Jiang ()

Empirical Economics, 2016, vol. 50, issue 4, No 16, 1526 pages

Abstract: Abstract Our paper applies the balls-and-bins model to China’s shipment level trade data of 2005. Similar to the results of the US data, we find that the balls-and-bins model matches the numbers and the gravity patterns of zero trade flows both at the country-product and country-firm levels reasonably well, but fails to predict the percentage of exporting firms as in the data. However, different from the results of the US data, we find that the model fails to predict the percentages of the single-product, single-destination, or single-product and single-destination exporting firms as in the data.

Keywords: Extensive margin; Balls-and-bins; China’s trade (search for similar items in EconPapers)
JEL-codes: F14 F17 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00181-015-0987-y

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