Decomposing China's Export Growth into Extensive Margin, Export Quality and Quantity Effects
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.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Besedes, Tibor & Prusa, Thomas J., 2011.
"The role of extensive and intensive margins and export growth,"
Journal of Development Economics,
Elsevier, vol. 96(2), pages 371-379, November.
- Tibor Besedes & Thomas J. Prusa, 2007. "The Role of Extensive and Intensive Margins and Export Growth," NBER Working Papers 13628, National Bureau of Economic Research, Inc.
- Felbermayr, Gabriel & Kohler, Wilhelm K., 2006.
"Exploring the intensive and extensive margins of world trade,"
Munich Reprints in Economics
20610, University of Munich, Department of Economics.
- Gabriel J. Felbermayr & Wilhelm Kohler, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 642-674, December.
- Gabriel J. Felbermayr & Wilhelm Kohler, 2004. "Exploring the Intensive and Extensive Margins of World Trade," CESifo Working Paper Series 1276, CESifo Group Munich.
- Neil Foster-McGregor & Johannes Pöschl & Robert Stehrer, 2010.
"The Impact of Preferential Trade Agreements on the Margins of International Trade,"
wiiw Working Papers
70, The Vienna Institute for International Economic Studies, wiiw.
- Foster, Neil & Poeschl, Johannes & Stehrer, Robert, 2011. "The impact of Preferential Trade Agreements on the margins of international trade," Economic Systems, Elsevier, vol. 35(1), pages 84-97, March.
- 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.
- Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
- R. Dornbusch & S. Fischer & P. A. Samuelson, 1976.
"Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods,"
178, Massachusetts Institute of Technology (MIT), Department of Economics.
- Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December.
- Timothy J. Kehoe & Kim J. Ruhl, 2006.
"How Important is the New Goods Margin in International Trade?,"
2006 Meeting Papers
733, Society for Economic Dynamics.
- Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358 - 392.
- Timothy J. Kehoe & Kim J. Ruhl, 2009. "How important is the new goods margin in international trade?," Staff Report 324, Federal Reserve Bank of Minneapolis.
- Guillaume Gaulier & Soledad Zignago, 2010.
"BACI: International Trade Database at the Product-Level. The 1994-2007 Version,"
2010-23, CEPII research center.
- Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
- Peter K. Schott, 2008.
"The relative sophistication of Chinese exports,"
CEPR;CES;MSH, vol. 23, pages 5-49, 01.
- Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
- Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008.
"Estimating Trade Flows: Trading Partners and Trading Volumes,"
3228230, Harvard University Department of Economics.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
- Ralf Ruhwedel & Michael Funke, 2001.
"Product Variety and Economic Growth Empirical Evidence for the OECD Countries,"
Quantitative Macroeconomics Working Papers
20104, Hamburg University, Department of Economics.
- By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1.
- Michael Funke & Ralf Ruhwedel, 2000. "Product Variety and Economic Growth - Empirical Evidence for the OECD Countries," CESifo Working Paper Series 250, CESifo Group Munich.
- Michael Funke, 2000. "Product Variety and Economic Growth; Empirical Evidence for the Oecd Countries," IMF Working Papers 00/5, International Monetary Fund.
- Michael Funke & Ralf Ruhwedel, 1999. "Product Variety and Economic Growth-Empirical Evidence for the OECD Countries," CRIEFF Discussion Papers 9906, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 441-487.
- Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
- Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
- Xu, Bin, 2010. "The sophistication of exports: Is China special?," China Economic Review, Elsevier, vol. 21(3), pages 482-493, September.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_4251. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.