The Growth of Chinese Exports: New Market Entry
Over the period of 1995-2005 an increasing number of differentiated products have been exported from developing countries. For example, while Chinese products had exported to 40.5% more markets on average, the corresponding numbers for Japan and the United States were almost constant. Using the bilateral trade data of 128 countries from 144 products, we study the determinants of Chinaâ€™s success in market access at the product level. We estimate a Probit model based on the heterogeneous-firm model at the product level for each year and find strong evidence that Chinaâ€™s success in accessing foreign markets is due to productivity growth of industries, probably engendered by firm level technological advance of existing firms or entry of foreign firms that have begun to produce in and export from China.
|Date of creation:||Mar 2011|
|Date of revision:||Jan 2012|
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- 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.
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Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1437-1462, November.
- Demidova, Svetlana, 2005. "Productivity Improvements and Falling Trade Costs: Boon or Bane?," Working Papers 2-05-1, Pennsylvania State University, Department of Economics.
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