Global Production Networks and the Peopleâ€™s Republic of Chinaâ€™s Processing Trade
This paper unveils a systematic pattern in the Peopleâ€™s Republic of Chinaâ€™s (PRC) processing trade. In a cross-section of the PRCâ€™s provinces, the average distance traveled by processing imports (import distance) is negatively correlated with the average distance traveled by processing exports (export distance). To explain this pattern, we set up a three- country industry-equilibrium model in which heterogeneous firms from two advanced economies. [ADBI Working Paper 175]
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