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Factors Influencing China's Exports with a Spatial Econometric Model

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  • Kuang-Hann Chou
  • Chien-Hsun Chen
  • Chao-Cheng Mai

Abstract

This article employs a spatial econometric model to examine whether China's exports are affected by political risk, economic integration, and spatial effects. The results show that as China's economy has grown, a home market effect is evident for its exports. A higher level of economic integration is beneficial to China's exports. A substitutive relationship is discovered between China's OFDI and exports. In addition, the higher income per capita of partner countries and the high degree of economic openness are both beneficial to China's exports. The partner countries of China, with their higher values of export trade, have been mostly countries with lower political risk.

Suggested Citation

  • Kuang-Hann Chou & Chien-Hsun Chen & Chao-Cheng Mai, 2015. "Factors Influencing China's Exports with a Spatial Econometric Model," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 191-211, August.
    • Handle: RePEc:taf:uitjxx:v:29:y:2015:i:3:p:191-211
    DOI: 10.1080/08853908.2014.1001536
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    2. Justin Paul, 2016. "The Rise of China: What, When, Where, and Why?," The International Trade Journal, Taylor & Francis Journals, vol. 30(3), pages 207-222, May.

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