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The Growth of Chinese Exports: New Market Entry

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  • Steven Husted
  • Shuichiro Nishioka

Abstract

Over the period of 1995-2005 an increasing number of differentiated products have been exported from developing countries. For example, while Chinese products had exported to 40.5% more markets on average, the corresponding numbers for Japan and the United States were almost constant. Using the bilateral trade data of 128 countries from 144 products, we study the determinants of China’s success in market access at the product level. We estimate a Probit model based on the heterogeneous-firm model at the product level for each year and find strong evidence that China’s success in accessing foreign markets is due to productivity growth of industries, probably engendered by firm level technological advance of existing firms or entry of foreign firms that have begun to produce in and export from China.

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File URL: http://www.ewi-ssl.pitt.edu/econ/files/faculty/wp/120316_wp_HustedSteven_HMR_March15_2012_shu.pdf
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Bibliographic Info

Paper provided by University of Pittsburgh, Department of Economics in its series Working Papers with number 460.

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Date of creation: Mar 2011
Date of revision: Jan 2012
Handle: RePEc:pit:wpaper:460

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  1. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, vol. 84(1), pages 73-85, May.
  2. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
  3. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
  4. Svetlana Demidova, 2008. "Productivity Improvements And Falling Trade Costs: Boon Or Bane?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1437-1462, November.
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