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Home Bias: How Has It Affected the Border Effects of China’s Trade?

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  • Wei Jia
  • Alexander Nuetah
  • Xian Xin

Abstract

This study aimed to analyze the impact of home bias on China’s trade border effects by constructing a pure exchange computable general equilibrium model. The results indicate that the border effects of external import, export, and trade in China are 6.96 times, 4.62 times, and 5.60 times their respective counterparts in interregional trade. On elimination of national bias, the border effects of China’s external import, export, and trade fell by 96.37%, 93.71%, and 95.18%, respectively, while border effects of China’s interregional trade became 8.06%. By eliminating regional bias, the border effects of China’s external imports, exports, and trade decreased by 3.63%, 6.29%, and 4.82%, respectively.

Suggested Citation

  • Wei Jia & Alexander Nuetah & Xian Xin, 2023. "Home Bias: How Has It Affected the Border Effects of China’s Trade?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(6), pages 1882-1895, May.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:6:p:1882-1895
    DOI: 10.1080/1540496X.2022.2153590
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