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Factors Influencing China's Exports with a Spatial Econometric Model

Kuang-Hann Chou, Chien-Hsun Chen and Chao-Cheng Mai

The International Trade Journal, 2015, vol. 29, issue 3, 191-211

Abstract: This article employs a spatial econometric model to examine whether China's exports are affected by political risk, economic integration, and spatial effects. The results show that as China's economy has grown, a home market effect is evident for its exports. A higher level of economic integration is beneficial to China's exports. A substitutive relationship is discovered between China's OFDI and exports. In addition, the higher income per capita of partner countries and the high degree of economic openness are both beneficial to China's exports. The partner countries of China, with their higher values of export trade, have been mostly countries with lower political risk.

Date: 2015
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DOI: 10.1080/08853908.2014.1001536

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