IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0869.html
   My bibliography  Save this article

Market Integration through Smuggling: China's Sanction on Norwegian Salmon

Author

Listed:
  • Garcia, Roberto J.

    (Norwegian University of Life Sciences, Norway)

  • Nguyen, Thi Ngan Giang

    (Norwegian University of Life Sciences, Norway)

Abstract

Popular press accounts and the political-economics literature link awarding the 2010 Nobel Peace Prize to a Chinese dissident to China's trade sanction on Norway's whole, fresh/chilled salmon exports. Norway lost its dominant supplier share of the Chinese market as its total salmon exports to China decreased. Then, in 2011, Vietnam dramatically increased its imports of Norwegian salmon. A structural break divides the data series into two sub-periods: July 1997 to February 2011, and March 2011 to December 2018 (the sanction period). This provides statistical evidence of China imposing an unannounced trade sanction. During the sanction period, Vietnam's current monthly imports are negatively affected by China's lagged monthly imports. A decrease in China's previous monthly salmon imports from Norway "Granger causes" an increase in Vietnam's current imports. No such relationship existed before the sanction, implying that China and Vietnam's salmon markets became integrated through smuggling.

Suggested Citation

  • Garcia, Roberto J. & Nguyen, Thi Ngan Giang, 2023. "Market Integration through Smuggling: China's Sanction on Norwegian Salmon," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 38(1), pages 93-114.
    • Handle: RePEc:ris:integr:0869
    as

    Download full text from publisher

    File URL: https://www.e-jei.org
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Vietnam; China; Norwegian salmon trade; sanction; Granger causality; and smuggling;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0869. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.