IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i24p16358-d996218.html
   My bibliography  Save this article

A Survival Analysis of China’s Trade of Environmental Goods

Author

Listed:
  • Shiguang Peng

    (School of Economics, Yunnan University, Kunming 650500, China)

  • Le Wang

    (College of Finance, Nanjing Agricultural University, Nanjing 210095, China)

Abstract

Based on data at the HS-6 digit level, this paper uses survival analysis to present characteristics concerning the survival of China’s exports and imports of environmental goods during the period 2002–2020, and compares them with those of other major exporting and importing countries. The major findings are summarized as follows: For exports, the average length of all trade spells was 8.36 years, and the length of only 18.72% of them was more than 18 years, which shows a disadvantage compared with other countries. The hazard rate was 0.31 in the first year of export, and the export survival rate of China’s environmental goods was always at the highest level compared with the others. By category, the export survival of environmental monitoring and evaluation goods was the best, and the export survival of renewable energy goods was the worst. For imports, the average length of all trade spells was 6.08 years, and the length of 50.37% of them was equal to 1 year, which are worse results than those of other countries. The hazard rate was up to 0.48 in the first year of imports, which is higher than those of other countries. By category, the environmental monitoring and evaluation goods had worse early import survival and better long-term survival, whereas the renewable energy goods experienced the opposite. Whether for exports or imports, the survival rate is higher when China trades with regions that signed a regional trade agreement with it.

Suggested Citation

  • Shiguang Peng & Le Wang, 2022. "A Survival Analysis of China’s Trade of Environmental Goods," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16358-:d:996218
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/24/16358/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/24/16358/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
    2. Natalia Zugravu-Soilita, 2019. "Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1125-1162, November.
    3. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, vol. 94(2), pages 150-154, May.
    4. Qi He & Hong Fang & Miao Wang & Bo Peng, 2015. "Trade liberalization and trade performance of environmental goods: evidence from Asia-Pacific economic cooperation members," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3021-3039, June.
    5. Volker Nitsch, 2009. "Die another day: duration in German import trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 133-154, April.
    6. Asche, Frank & Cojocaru, Andreea L. & Gaasland, Ivar & Straume, Hans-Martin, 2018. "Cod stories: Trade dynamics and duration for Norwegian cod exports," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 71-79.
    7. Tibor Besedeš & Thomas J. Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 266-295, February.
    8. Andrew Bernard & J Bradford Jensen & Stephen Redding & Peter Schott, 2009. "The Margins of U.S. Trade (Long Version)," Working Papers 09-18, Center for Economic Studies, U.S. Census Bureau.
    9. Everett B Peterson & Jason H Grant & Jeta Rudi-Polloshka, 2018. "Survival of the Fittest: Export Duration and Failure into United States Fresh Fruit and Vegetable Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 23-45.
    10. Cadot, Olivier & Iacovone, Leonardo & Pierola, Martha Denisse & Rauch, Ferdinand, 2013. "Success and failure of African exporters," Journal of Development Economics, Elsevier, vol. 101(C), pages 284-296.
    11. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2009. "The Margins of US Trade," American Economic Review, American Economic Association, vol. 99(2), pages 487-493, May.
    12. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
    13. Yangyuyu Luo & Sayeeda Bano, 2020. "Modelling New Zealand dairy products: evidence on export survival and duration," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 605-631, July.
    14. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    15. Teresa L. Cyrus, 2021. "Why Do Countries Form Regional Trade Agreements? A Discrete-Time Survival Analysis," Open Economies Review, Springer, vol. 32(2), pages 417-434, April.
    16. repec:lmu:muenar:20646 is not listed on IDEAS
    17. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Exploring the Intensive and Extensive Margins of World Trade," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 4, pages 115-148, World Scientific Publishing Co. Pte. Ltd..
    18. Črt Kostevc & Katja Zajc Kejžar, 2020. "Firm‐level export duration: The importance of market‐specific ownership linkages," The World Economy, Wiley Blackwell, vol. 43(5), pages 1277-1308, May.
    19. Joakim Gullstrand & Maria Persson, 2015. "How to combine high sunk costs of exporting and low export survival," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 23-51, February.
    20. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
    21. Liu, Huiling & Zhang, Jianhua & Lei, Heng, 2022. "Do imported environmental goods reduce pollution intensity? The end use matters," Energy Economics, Elsevier, vol. 112(C).
    22. Wan, Rui & Nakada, Minoru & Takarada, Yasuhiro, 2018. "Trade liberalization in environmental goods," Resource and Energy Economics, Elsevier, vol. 51(C), pages 44-66.
    23. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-1721, September.
    24. Josep M Vilarrubia & Rubén Segura-Cayuela, 2008. "Uncertainty and entry into export markets," 2008 Meeting Papers 661, Society for Economic Dynamics.
    25. Ping Wang & Nhuong Tran & Norbert L. W. Wilson & Chin Yee Chan & Danh Dao, 2019. "An Analysis of Seafood Trade Duration: The Case of ASEAN," Marine Resource Economics, University of Chicago Press, vol. 34(1), pages 59-76.
    26. Ricardo Arguello & Andres Garcia-Suaza & Daniel Valderrama, 2020. "Exporters’ agglomeration and the survival of export flows: empirical evidence from Colombia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 703-729, August.
    27. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2015. "The Experience of Survival: Determinants of Export Survival in Lao PDR," World Development, Elsevier, vol. 76(C), pages 82-94.
    28. Jun Shao & Kangning Xu & Bin Qiu, 2012. "Analysis of Chinese Manufacturing Export Duration," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(4), pages 56-73, July.
    29. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    30. repec:hal:spmain:info:hdl:2441/6apm7lruv088iagm4rv2c33jtg is not listed on IDEAS
    31. Tibor Besedeš & Thomas J. Prusa, 2017. "The Hazardous Effects Of Antidumping," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 9-30, January.
    32. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," SciencePo Working papers hal-03579844, HAL.
    33. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," Post-Print hal-03579844, HAL.
    34. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    35. Xuping Cao & Nancy Hanson-Rasmussen, 2018. "Dynamic Change in the Export Technology Structure of China’s Environmental Goods and Its International Comparison," Sustainability, MDPI, vol. 10(10), pages 1-14, September.
    36. Nguyen, Daniel X., 2012. "Demand uncertainty: Exporting delays and exporting failures," Journal of International Economics, Elsevier, vol. 86(2), pages 336-344.
    37. Zhe Dai & Yunzhi Zhang & Rui Zhang, 2021. "The Impact of Environmental Regulations on Trade Flows: A Focus on Environmental Goods Listed in APEC and OECD," Post-Print hal-03676612, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kemal Türkcan & Socrates Majune Kraido & Eliud Moyi, 2022. "Export margins and survival: A firm‐level analysis using Kenyan data," South African Journal of Economics, Economic Society of South Africa, vol. 90(2), pages 149-174, June.
    2. Pişkin, Erhan, 2017. "Türkiye İhracatının Ölüm-Kalım Meselesi [The Matter of Survival for Turkish Exports]," MPRA Paper 81459, University Library of Munich, Germany.
    3. Besedes, Tibor, 2011. "Export differentiation in transition economies," Economic Systems, Elsevier, vol. 35(1), pages 25-44, March.
    4. Massimo Riccaboni & Stefano Schiavo, 2012. "Stochastic Trade Networks," DEGIT Conference Papers c017_014, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Yang, Bixuan & Asche, Frank & Anderson, James L., 2019. "Trade dynamics and duration of Chinese food imports," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291085, Agricultural and Applied Economics Association.
    6. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
    7. Céline Carrère & Vanessa Strauss-Kahn, 2017. "Export survival and the dynamics of experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 271-300, May.
    8. Helena Engemann & Yaghoob Jafari & Thomas Heckelei, 2023. "Institutional quality and the duration of agri‐food trade flows," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 135-154, February.
    9. Luis Felipe Beltrán Morales, 2022. "Impact of the COVID-19 Pandemic on Export Survival from Latin American Countries," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    10. Carl Gaigné & Lota D. Tamini, 2021. "Environmental Taxation and Import Demand for Environmental Goods: Theory and Evidence from the European Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(2), pages 307-352, February.
    11. Margalida Murillo & Cindy Paola Leal, 2021. "Tratados de Libre Comercio y duración de las exportaciones: Evidencia a nivel de firma para Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 88(6), pages 201-238, July.
    12. Gnidchenko, A., 2014. "Decomposing Export Growth into Extensive and Intensive Margins with the Emphasis on Comparative Advantages," Journal of the New Economic Association, New Economic Association, vol. 24(4), pages 38-64.
    13. Joseph Phiri & Karel Malec & Socrates Kraido Majune & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Sylvie Kobzev Kotásková & Mansoor Maitah & Kamil Maitah & Patricia Naluwooza, 2021. "Durability of Zambia’s Agricultural Exports," Agriculture, MDPI, vol. 11(1), pages 1-14, January.
    14. José Antonio Rodríguez-López, 2011. "Prices and Exchange Rates: A Theory of Disconnect," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 1135-1177.
    15. Türkcan, Kemal, 2014. "Exports Margins in Austria’s Export Growth," MPRA Paper 53085, University Library of Munich, Germany.
    16. Strauss-Kahn, Vanessa & Carrère, Céline, 2014. "Developing Countries Exports Survival in the OECD: Does Experience Matter?," CEPR Discussion Papers 10059, C.E.P.R. Discussion Papers.
    17. Ana Fernandes & Heiwai Tang, 2012. "Learning from Neighbors' Export Activities: Evidence from Exporters' Survival," Discussion Papers Series, Department of Economics, Tufts University 0766, Department of Economics, Tufts University.
    18. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2013. "Different types of firms, different types of products, and their dynamics: An anatomy of China's imports," China Economic Review, Elsevier, vol. 25(C), pages 62-77.
    19. Békés, Gábor & Muraközy, Balázs, 2012. "Temporary trade and heterogeneous firms," Journal of International Economics, Elsevier, vol. 87(2), pages 232-246.
    20. Rishav Bista & Rebecca Tomasik, 2017. "Time Zone Effect and the Margins of Exports," The World Economy, Wiley Blackwell, vol. 40(6), pages 1053-1067, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16358-:d:996218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.