INTERNATIONAL TRADE AND ITS EFFECTS ON ECONOMIC PERFORMANCE IN CHINA

Almas Heshmati () and Sun Peng ()
Additional contact information
Sun Peng: LiaoNing Entry-Exit Inspection and Quarantine, Bureau of P.R. China, No. 81 RenMin Rode Dalian City, LiaoNing Province 116001, China

China Economic Policy Review (CEPR), 2012, vol. 01, issue 02, 1-26

Abstract: This research discusses the role of international trade in China's economic growth. It starts with a review of conceptions as well as the evolution of China's international trade regime and the policy that China has taken in favor of its trade sectors. China's international trade performance is analyzed extensively and its effects on efficiency in production evaluated. A stochastic frontier production function is applied, based on a balanced panel data of 31 provinces observed from 2002 to 2007. The production function model is estimated and province-specific determinants of inefficiency in trade are identified. The study demonstrates that increasing participation in global trade helps China reap static and dynamic benefits, stimulating rapid national economic growth. Both international trade volume and trade structure toward high-tech exports result in positive effects on regional productivity. Provinces differ by economic growth and participation in international trade. Policy implications are drawn from the empirical results accordingly.

Keywords: International trade; economic growth; efficiency; stochastic frontier; panel data; China (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1793969012500094
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:wsi:ceprxx:v:01:y:2012:i:02:n:s1793969012500094

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1793969012500094

Access Statistics for this article

China Economic Policy Review (CEPR) is currently edited by Kar-yiu Wong

More articles in China Economic Policy Review (CEPR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().