Google and China's Trade

Cui Hu and Ben G. Li

MPRA Paper from University Library of Munich, Germany

Abstract: Although Google is blocked in China, Chinese provinces export significantly more to foreign countries that recently searched for them (up to 12 months prior). This attention premium is found mainly at the extensive margin of exports, larger in products that are relatively homogeneous, substitutable, and upstream in the production process, and more pronounced during the COVID pandemic and during the holiday season. The attention premium is not found for Chinese imports from the rest of the world. Our findings attest to online attention as a scarce resource in international trade allocated by importers.

Keywords: Trade; information frictions; scarce attention; internet censorship (search for similar items in EconPapers)
JEL-codes: D83 F14 (search for similar items in EconPapers)
Date: 2025-03-01
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