IDEAS home Printed from https://ideas.repec.org/p/hhs/nlsseb/2019_006.html
   My bibliography  Save this paper

Market Integration through Smuggling: China’s Sanction on Norwegian Salmon

Author

Listed:
  • Garcia, Roberto J.

    (School of Economics and Business, Norwegian University of Life Sciences)

  • Nguyen, Thi Ngan Giang

    (School of Economics and Business, Norwegian University of Life Sciences)

Abstract

Much has been written in the popular press and studied in the political-economics literature about the link between the awarding of the 2010 Noble Peace Prize to a Chinese dissident and China’s trade sanction affecting Norway’s whole, fresh/chilled salmon exports. Trade patterns show a break in Norway’s salmon exports to China and a declining share of the Chinese market. However, since 2011 a curious trade pattern developed as Vietnam suddenly increased its import of Norwegian salmon. This paper establishes a relationship between the salmon markets of Vietnam and China since 2011, specifically addressing whether Vietnam’s increased import of salmon is related to China’s limiting of market access to Norwegian salmon. The sanction period acts as a structural break that divides trade flows into two sub-periods, July 1997 to February 2011 and March 2011 to December 2018. Vietnam’s current monthly imports are negatively affected by lags in China’s monthly imports with the sanction but had no effect before the sanction. An increase (decrease) in China’s salmon imports from Norway “Granger causes” a decrease (increase) in Vietnam’s imports from Norway. This provides statistical evidence of China’s sanction on Norwegian salmon, but that the sanction integrated China and Vietnam’s salmon markets through smuggling.

Suggested Citation

  • Garcia, Roberto J. & Nguyen, Thi Ngan Giang, 2020. "Market Integration through Smuggling: China’s Sanction on Norwegian Salmon," Working Paper Series 6-2019, Norwegian University of Life Sciences, School of Economics and Business.
    • Handle: RePEc:hhs:nlsseb:2019_006
    as

    Download full text from publisher

    File URL: https://www.nmbu.no/download/file/fid/45745
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ivar Kolstad, 2016. "Too big to fault? Effects of the 2010 Nobel Peace Prize on Norwegian exports to China and foreign policy," CMI Working Papers 3, CMI (Chr. Michelsen Institute), Bergen, Norway.
    2. Andriamananjara, Soamiely & Arce, Hugh M. & Ferrantino, Michael J., 2004. "Transshipment in the United States," Working Papers 15871, United States International Trade Commission, Office of Economics.
    3. Fuchs, Andreas & Klann, Nils-Hendrik, 2013. "Paying a visit: The Dalai Lama effect on international trade," Journal of International Economics, Elsevier, vol. 91(1), pages 164-177.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shekhar Aiyar & Davide Malacrino & Andrea F. Presbitero, 2024. "Investing in Friends: The Role of Geopolitical Alignment in FDI Flows," NCAER Working Papers 158, National Council of Applied Economic Research.
    2. Bommer, Christian & Dreher, Axel & Perez-Alvarez, Marcello, 2022. "Home bias in humanitarian aid: The role of regional favoritism in the allocation of international disaster relief," Journal of Public Economics, Elsevier, vol. 208(C).
    3. Koenig, Pamina & Poncet, Sandra, 2022. "The effects of the Rana Plaza collapse on the sourcing choices of French importers," Journal of International Economics, Elsevier, vol. 137(C).
    4. Taralashvili, Tamar, 2024. "How interstate soft conflicts affect bilateral migration: Results from a structural gravity model," International Economics, Elsevier, vol. 179(C).
    5. Klymak, Margaryta, 2023. "The trade effects of information provision about forced and child labor," World Development, Elsevier, vol. 167(C).
    6. Crozet, Matthieu & Hinz, Julian & Stammann, Amrei & Wanner, Joschka, 2021. "Worth the pain? Firms’ exporting behaviour to countries under sanctions," European Economic Review, Elsevier, vol. 134(C).
    7. Brian Blankenship & Renanah Miles Joyce, 2020. "Purchasing Power: US Overseas Defense Spending and Military Statecraft," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(2-3), pages 545-573, February.
    8. Hege Medin, 2022. "Why do firms import via merchants in entrepôt countries rather than directly from the source?," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 854-884, August.
    9. Hu, Jiafei & Yuan, Haishan, 2021. "Interest arbitrage under capital controls: Evidence from reported entrepôt trades," Journal of Banking & Finance, Elsevier, vol. 127(C).
    10. Scott L. Kastner, 2016. "Buying Influence? Assessing the Political Effects of China’s International Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 60(6), pages 980-1007, September.
    11. Wei, Shang-Jin & Fisman, Raymond & Moustakerski, Peter, 2007. "Outsourcing Tariff Evasion: A New Explanation for Entrepôt Trade," CEPR Discussion Papers 6078, C.E.P.R. Discussion Papers.
    12. Cheng CHEN & Tatsuro SENGA & Chang SUN & Hongyong ZHANG, 2016. "Firm Expectations and Investment: Evidence from the China-Japan Island Dispute," Discussion papers 16090, Research Institute of Economy, Trade and Industry (RIETI).
    13. Hu, Zhi-An & Li, Jinghong & Nie, Zhuo, 2023. "Long Live friendship? The long-term impact of Soviet aid on Sino-Russian trade," Journal of Development Economics, Elsevier, vol. 164(C).
    14. Aiyar, Shekhar & Malacrino, Davide & Presbitero, Andrea F., 2024. "Investing in friends: The role of geopolitical alignment in FDI flows," European Journal of Political Economy, Elsevier, vol. 83(C).
    15. Productivity Commission, 2005. "Review of Part X of the Trade Practices Act 1974: International Liner Cargo Shipping," Inquiry Reports, Productivity Commission, Government of Australia, number 32, January.
    16. Strand, Jonathan R. & Zappile, Tina M., 2015. "Always Vote for Principle, Though You May Vote Alone: Explaining United States Political Support for Multilateral Development Loans," World Development, Elsevier, vol. 72(C), pages 224-239.
    17. Raymond Fisman & Peter Moustakerski & Shang-Jin Wei, 2008. "Outsourcing Tariff Evasion: A New Explanation for Entrepôt Trade," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 587-592, August.
    18. Lian, Zeng & Ma, Yunfeng & Chen, Li & He, Rong, 2024. "The role of cities in cross-border mergers and acquisitions — Evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1482-1498.
    19. Yan, Jiaqiang & Zhou, Yonghong, 2021. "Economic return to political support: Evidence from voting on the representation of China in the United Nations," Journal of Asian Economics, Elsevier, vol. 75(C).
    20. Xiong, Mengxu & Lu, Jiajia & Kong, Dongmin, 2024. "Bilateral conflicts and corporate investment," International Review of Financial Analysis, Elsevier, vol. 95(PB).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nlsseb:2019_006. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Frode Alfnes (email available below). General contact details of provider: https://edirc.repec.org/data/ioumbno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.