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

Author

Listed:
  • Lee, Hyun-Hoon

    () (Department of International Trade and Business)

  • Park, Donghyun

    () (Asian Development Bank)

  • Wang, Jing

    () (Department of International Trade and Business)

Abstract

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.

Suggested Citation

  • Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2012. "Different Types of Firms, Products, and Directions of Trade: The Case of the People’s Republic of China," Working Papers on Regional Economic Integration 101, Asian Development Bank.
  • Handle: RePEc:ris:adbrei:0101
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    People’s Republic of China; intermediate goods; fragmentation; foreign enterprises; firm heterogeneity;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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