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Extensive margin, quantity and price in China's export growth

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  • Bingzhan, Shi

Abstract

We developed a methodology to decompose export growth into three margins: extensive margin, price and quantity. We then decomposed data on China's export trade with 140 partners in 2001 and 2007 into the three margins. We arrive at the following conclusions: China's export growth is mainly driven by quantity growth, which accounts for about 70% of overall export growth. This conclusion is robust for different partners, different industries and different techniques. To convert export quantity-driven growth into extensively margin- and quality-driven growth is a major challenge for the Chinese government and China's enterprises in the long term.

Suggested Citation

  • Bingzhan, Shi, 2011. "Extensive margin, quantity and price in China's export growth," China Economic Review, Elsevier, vol. 22(2), pages 233-243, June.
  • Handle: RePEc:eee:chieco:v:22:y:2011:i:2:p:233-243
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    References listed on IDEAS

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    Cited by:

    1. C. Veeramani & Lakshmi A & Prachi Gupta, 2017. "Intensive and extensive margins of exports: What can India learn from China?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2017-002, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
    3. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    4. Gao, Yue & Whalley, John & Ren, Yonglei, 2014. "Decomposing China's export growth into extensive margin, export quality and quantity effects," China Economic Review, Elsevier, vol. 29(C), pages 19-26.
    5. C. Veeramani & Prachi Gupta, 2014. "Extensive and Intensive Margins of India's Exports: Comparison with China," Working Papers id:5808, eSocialSciences.

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