CHINA'S EXPORT MARGINS AND THEIR GROWTH SOURCES: AN ANALYSIS OF EXTENSIVE MARGIN AND INTENSIVE MARGIN

Yong-Liang Zhao (), Liu de-Xue, Hua-Lin Pu and Zi-Hui Yang
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Yong-Liang Zhao: College of Economics, Jinan University, Guangzhou 510632, P. R. China
Liu de-Xue: College of Economics, Jinan University, Guangzhou 510632, P. R. China
Hua-Lin Pu: College of Economics, Jinan University, Guangzhou 510632, P. R. China
Zi-Hui Yang: Lingnan College, Sun Yat-sen University, Guangzhou 510632, P. R. China

The Singapore Economic Review (SER), 2013, vol. 58, issue 04, 1-20

Abstract: Based on the theoretical methods by Feenstra and others, this paper applies the empirical panel data of years 2000–2007 to measure the growth of China's provincial import and export for both extensive and intensive margins. Extensive margin reflecting the level of variety becomes a significant factor for China's export and is slightly higher than intensive margin. The empirical results indicate that emerging industrial countries have gradually become the important new markets for China's export variety. As for the variables affecting variety growth, trade barriers are found to play a dominant role as invisible constraints, and small and medium enterprises contribute significantly to variety growth, while foreign investment and market-oriented reforms have become the driving force. Moreover, trade variety has been identified as the third factor of economic growth, in addition to the two traditional factors (capital and labor).

Keywords: Trade variety; technological progress; economic growth (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S021759081350029X

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