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Trade Elasticity of China

Author

Listed:
  • Chu-Ping Lo

    (Department of Agricultural Economics, National Taiwan University)

Abstract

This paper presents a simple methodology to approximate trade elasticity of China by only using her 2016 firm-level trade data, wherein the exporting country is replaced by the country' most populous destination (a base country) when calculating the export intensity. With Hong Kong being the base country, the estimated trade elasticity to China exports is θ = 8.78 (if σ = 6.56). This methodology also provides a way to examine the relative "resistance" of a country's trading partners while taking them as the base countries: the larger their estimated trade elasticity, the greater their resistance to trade.

Suggested Citation

  • Chu-Ping Lo, 2016. "Trade Elasticity of China," Annals of Economics and Finance, Society for AEF, vol. 17(1), pages 167-177, May.
    • Handle: RePEc:cuf:journl:y:2016:v:17:i:1:lo
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    Cited by:

    1. Hongkui Liu & Ming Xu & Tenglong Zhong, 2019. "Import Competition and Export Markups: Evidence from Chinese Multi-Product Exporters," Annals of Economics and Finance, Society for AEF, vol. 20(1), pages 357-385, May.

    More about this item

    Keywords

    Trade elasticity; China;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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