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China’s Trade in Asia and the World: Long run Relation with Short run Dynamics

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  • Dinda, Soumyananda

Abstract

This paper attempts to find the long run relation with short run dynamics of China’s trade in Asia and the world. Co-integration technique provides the economic integration of China’s export to the US and its import from Asian nations. This study observed that China is economically integrated with Asia and the world. China has double role in international trade – (i) China acts as an attractor of all inputs from Asia and (ii) China pushes the products in international market with a comparative advantage in price competition. This study also reveals that the speed of China’s import from Asia is faster than that of China’s export to the US.

Suggested Citation

  • Dinda, Soumyananda, 2011. "China’s Trade in Asia and the World: Long run Relation with Short run Dynamics," MPRA Paper 30664, University Library of Munich, Germany, revised 04 May 2011.
  • Handle: RePEc:pra:mprapa:30664
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    References listed on IDEAS

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    6. Prema‐chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding‐Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
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    13. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
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    Cited by:

    1. Prema‐chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding‐Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
    2. Soumyananda Dinda, 2014. "China integrates Asia with the world: an empirical study," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 7(2), pages 70-89, May.
    3. Dinda, Soumyananda, 2011. "Climate Change and Development: Trade Opportunities of Climate Smart Goods and Technologies in Asia," MPRA Paper 34883, University Library of Munich, Germany, revised Nov 2011.

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    More about this item

    Keywords

    Economic Integration; production network; Co-integration; Asia; China; the US; Error correction; Double Engine of Growth; Export; Import; Long run; short run dynamics.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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