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Decomposing China's Export Growth into Extensive Margin, Export Quality and Quantity Effects

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  • Yue Gao
  • John Whalley
  • Yonglei Ren

Abstract

This paper decomposes the growth of China’s export into three parts: growth in the extensive margin, increased quantity and increased prices; we perform a series of empirical analyses using China’s export data at HS-6 digit to analyze the characteristics of China’s export growth. From 1995 to 2010, China’s export growth was mainly driven by quantity growth with a contribution of 66.81%; but if we divide the time period from 1995 to 2010 into five even phases, we find the three parts of export growth show different trends. The contributions of the extensive margin and price changes are decreasing, but quantity shows an increasing trend. China’s export is better than the rest of the world after the financial crisis and in 2008-2010, with a strategy of lowering price and promoting sales in 2009 when facing a slump in export markets; resuming price increases and increasing sales moderately in reaction to improving export conditions in 2010.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4251.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4251

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Related research

Keywords: product fragmentation; heterogeneity; export; FDI;

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  1. Peter K. Schott, 2006. "The Relative Sophistication of Chinese Exports," NBER Working Papers 12173, National Bureau of Economic Research, Inc.
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  14. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
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  17. Christodoulopoulou, Styliani, 2010. "THE Effects of Multilateral Trade Liberalization on the Extensive and the Intensive Margins of Trade," MPRA Paper 29169, University Library of Munich, Germany.
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