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

Author

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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.

Suggested Citation

  • Yue Gao & John Whalley & Yonglei Ren, 2013. "Decomposing China's Export Growth into Extensive Margin, Export Quality and Quantity Effects," CESifo Working Paper Series 4251, CESifo.
    • Handle: RePEc:ces:ceswps:_4251
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    Cited by:

    1. Yu, Ziliang & Tong, Jiadong, 2020. "Financing benefit from exporting: An indirect identification approach," Journal of Multinational Financial Management, Elsevier, vol. 57.
    2. 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.
    3. Mahdi Ghodsi, 2018. "The Impact of Chinese Technical Barriers to Trade on its Manufacturing Imports," wiiw Working Papers 146, The Vienna Institute for International Economic Studies, wiiw.
    4. Chaobo Zhou & Yuankun Li & Zhengxin Sun, 2022. "Has the Carbon Trading Pilot Market Improved Enterprises’ Export Green-Sophistication in China?," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    5. Shavkat OTAMURODOV, & Shujin ZHU & Tenglong ZHONG, Author-Workplace-Name: Hunan University, 410082, P.R.China & Ihtisham ul HAQ, 2016. "The Role Of Extensive Margin And Intensive Margin In Kazakhstan’S Export Growth," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-1, July.
    6. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.

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    More about this item

    Keywords

    product fragmentation; heterogeneity; export; FDI;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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