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Does the belt and road initiative stimulate chinese exports? The role of state-owned enterprises

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  • Görg, Holger
  • Mao, Haiou

Abstract

This paper evaluates firms' exporting responses to BRI and considers their heterogeneity in ownership types, product types, regional origin and trade mode. This is done by analyzing firm-product-destination level customs data from 2011 to 2015 in a gravity model framework. Our empirical results show that aggregate export behavior did not change significantly after BRI. However, ownership matters when evaluating firms reactions. SOEs increase their total exporting and average export value (the intensive margin) to BRI countries, while private domestic firms show no reaction to BRI at any margin. Further, our results on regional heterogeneity suggests that "open through the west", i.e., boosting the development of western regions in China, did not appear to work in the short term. Our findings show clearly the implications of BRI's impact from firm level perspective.

Suggested Citation

  • Görg, Holger & Mao, Haiou, 2020. "Does the belt and road initiative stimulate chinese exports? The role of state-owned enterprises," KCG Working Papers 21, Kiel Centre for Globalization (KCG).
  • Handle: RePEc:zbw:kcgwps:21
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    References listed on IDEAS

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    More about this item

    Keywords

    belt and road Initiative; firm's export; extensive margin; intensive margin; state-owned firms;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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