The Role of the Economy Structure in the U.S. - China Bilateral Trade Deficit
AbstractThis study investigates the effect of the economy structure on the U.S. - China bilateral trade deficit as alternative to the influence of the exchange rate fluctuation. The revealed comparative advantage indices are proposed as the measure of the relative structural differences between two countries due to factor endowments and technology. A Bayesian Stochastic Search Variable Selection method is applied to the U.S. - China annual trade data for 57 commodity groups at the SITC 2-digit industry aggregation level to obtain empirical variable inclusion probabilities. Based on the data, we found no conclusive evidence against the hypothesis of the short-run effect of either of the explanatory factors, while the long-run influence is revealed to be insignificant in most of the cases.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 104018.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.