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Special Issue: Issues in Asia. Guest Editor: Laixun Zhao

Author

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  • Ying Ge
  • Yin He
  • Yeheng Jiang
  • Xiaopeng Yin

Abstract

Although it is an important building block of regional integration, very little research has investigated border trade between neighboring countries. This paper fills this gap by examining the patterns and determinants of China's border trade with its neighboring countries. First, a disaggregated, firm-product level trade data is used to provide a detailed overview of border trade growth and dynamics. The paper shows that trade liberalization has significantly encouraged new firms to enter the export market, and new private firms account for the majority of the expansion in border exports and the shift toward more sophisticated products. Second, a gravity model is used to investigate the determinants of border trade. The results suggest that multilateral and regional integration, market size and institutional quality play important roles in promoting border trade.

Suggested Citation

  • Ying Ge & Yin He & Yeheng Jiang & Xiaopeng Yin, 2014. "Special Issue: Issues in Asia. Guest Editor: Laixun Zhao," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 300-312, May.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:2:p:300-312
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    References listed on IDEAS

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    Cited by:

    1. Shahriar, Saleh & Qian, Lu & Kea, Sokvibol, 2018. "China's economic integration with the Greater Mekong Sub-region: An empirical analysis by a panel dynamic gravity model," Economics Discussion Papers 2018-44, Kiel Institute for the World Economy (IfW Kiel).
    2. Dongmei Guo & Die Hu & Weizeng Sun, 2023. "Effect of goods market segmentation on labor mobility: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 423-449, February.
    3. Yi Cheng & Hui Liu & Dongmei Chen & Haimeng Liu, 2022. "Human Activity Intensity and Its Spatial-Temporal Evolution in China’s Border Areas," Land, MDPI, vol. 11(7), pages 1-19, July.

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