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

Author

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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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    File URL: https://mpra.ub.uni-muenchen.de/30664/1/MPRA_paper_30664.pdf
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    References listed on IDEAS

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    1. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
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    3. Kimura Fukunari & Ando Mitsuyo, 2005. "The Economic Analysis of International Production/Distribution Networks in East Asia and Latin America: The Implication of Regional Trade Arrangements," Business and Politics, De Gruyter, vol. 7(1), pages 1-38, April.
    4. Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    5. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
    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.
    7. Prema-chandra Athukorala, 2005. "Product Fragmentation and Trade Patterns in East Asia," Asian Economic Papers, MIT Press, vol. 4(3), pages 1-27, Fall.
    8. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344.
    9. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
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    11. Haddad, Mona, 2007. "Trade integration in East Asia : the Role of China and production networks," Policy Research Working Paper Series 4160, The World Bank.
    12. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    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.

    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.;

    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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