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Different Types of Firms, Products, and Directions of Trade: The Case of the People’s Republic of China

  • Lee, Hyun-Hoon

    ()

    (Department of International Trade and Business)

  • Park, Donghyun

    ()

    (Asian Development Bank)

  • Wang, Jing

    ()

    (Department of International Trade and Business)

Using highly disaggregated, Harmonized System (HS) 8-digit, product-category level data collected by the People’s Republic of China’s (PRC) Customs Office for 2000 and 2008, we perform an in-depth anatomy of the PRC's trade in manufactured goods. First, we distinguish between foreign firms and domestic firms, with the latter further divided into private firms and public firms. Second, we distinguish products as either final goods or intermediate goods. Third, we look at not only the PRC's exports but also its imports, and test for the relative importance of the extensive margin—number of goods—versus the intensive margin—the amount traded per good. Fourth, we estimate gravity equations from the perspective of dynamics utilizing a dynamic adjustment model. Overall, our analysis yields a number of new stylized facts and generates some interesting puzzles about the PRC's exports and imports.

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Paper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 101.

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Length: 50 pages
Date of creation: 01 Aug 2012
Date of revision:
Handle: RePEc:ris:adbrei:0101
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  17. Fukunari KIMURA, 2009. "The Spatial Structure of Production/Distribution Networks and Its Implication for Technology Transfers and Spillovers," Working Papers d005, Economic Research Institute for ASEAN and East Asia (ERIA).
  18. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2011. "The Role of the People’s Republic of China in International Fragmentation and Production Networks: An Empirical Investigation," Working Papers on Regional Economic Integration 87, Asian Development Bank.
  19. Lu, Jiangyong & Lu, Yi & Tao, Zhigang, 2010. "Exporting behavior of foreign affiliates: Theory and evidence," Journal of International Economics, Elsevier, vol. 81(2), pages 197-205, July.
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