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来源类型Working Paper
规范类型报告
DOI10.3386/w13963
来源IDWorking Paper 13963
China's Local Comparative Advantage
James Harrigan; Haiyan Deng
发表日期2008-04-18
出版年2008
语种英语
摘要China's trade pattern is influenced not just by its overall comparative advantage in labor intensive goods but also by geography. We use two variants of the Eaton-Kortum (2002) model to study China's local comparative advantage. The theory predicts that China's share of export markets should grow most rapidly where China's share is initially large. A corollary is that exporters that have a big market share where China's share is initially large should see the largest fall in their market shares. These market share change predictions are strongly supported in the data from 1996 to 2006. We also show theoretically that since trade costs are proportional to weight rather than value, relative distance affects local comparative advantage as well as the overall volume of trade. The model predicts that China has a comparative advantage in heavy goods in nearby markets, and lighter goods in more distant markets. This theory motivates a simple empirical prediction: within a product, China's export unit values should be increasing in distance. We find strong support for this effect in our empirical analysis on product-level Chinese exports in 2006.
主题International Economics ; Trade
URLhttps://www.nber.org/papers/w13963
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/571635
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GB/T 7714
James Harrigan,Haiyan Deng. China's Local Comparative Advantage. 2008.
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