Trade Flows and Trade Specialisation: The Case of China

Guglielmo Maria Caporale, Anamaria Sova and Robert Sova

No 1453, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Using annual data for the period 1992-2012, this paper examines trade flows between China and its main trade partners in Asia, North America and Europe, and whether increasing trade has led to industrial structural adjustment and changes in China’s trade patterns. The analysis is based on both economic indicators and the estimation of a gravity model, and applies recently developed panel data methods that explicitly take into account unobserved heterogeneity, specifically the fixed effect vector decomposition (FEVD) technique. The findings confirm the significant change in China’s trading structure associated with the fast growth of foreign trade. In particular, there has been a shift from resource- and labour-intensive to capital- and technology-intensive exports.

Keywords: gravity model; panel data analysis; trade specialisation; comparative advantage (search for similar items in EconPapers)
JEL-codes: C23 F14 F15 (search for similar items in EconPapers)
Pages: 28 p.
Date: 2015
New Economics Papers: this item is included in nep-int and nep-sea
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Citations: View citations in EconPapers (28)

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https://www.diw.de/documents/publikationen/73/diw_01.c.497193.de/dp1453.pdf (application/pdf)

Related works:
Working Paper: Trade flows and trade specialisation: the case of China (2016)
Journal Article: Trade flows and trade specialisation: The case of China (2015)
Working Paper: Trade Flows and Trade Specialisation: The Case of China (2015)
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