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The Evolution Of China'S Bilateral Trade Flows Over Time 1979-2001

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  • Sayeeda Bano

    (University of Waikato (New Zealand))

  • Samson Li

    (University of Waikato (New Zealand))

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    Abstract

    This study examines the evolution of bilateral trade relations between China, New Zealand and her selected major trading partners such as, Japan, United States, Hong Kong, South Korea and Germany. The present study adapts a variety of approaches to investigate these developments. First, it examines the strength of trade relations between China-selected trading partners, using "intensity of trade index" and a "trade reciprocity index". Second it identifies sectors in which China has comparative advantage and presents an analysis of "revealed comparative advantage" (RCA), using Balassa (1965) methodology. Third, it examines intra-industry trade between China-Japan, using Grubel-Lloyd and Aquino indices. Finally, gravity trade model is used to identify the key determinants of China's trade. These analyses are examined to consider how trade relation has changes in this period of economic reforms and future prospects for fostering trade and socio-economic and cultural cooperation in the context of recent trade negotiation for a Free trade agreement between China-New Zealnd and selected countries. Presented at the 15th International Conference,Istanbul, Turkey, May 2005.

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    Bibliographic Info

    Paper provided by International Trade and Finance Association in its series International Trade and Finance Association Conference Papers with number 1021.

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    Date of creation: 18 May 2005
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    Handle: RePEc:bep:itfapp:1021

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