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The Dynamics of China's Export Growth: An Intertemporal Analysis

Author

Listed:
  • Francis Tuan

    (Renmin University of China, Beijing, China and East Asia Economic Consulting, USA)

  • Agapi Somwaru

    (Economic Consulting, USA and East Asia Economic Consulting, USA)

  • Sun Ling Wang

    (Economic Research Service, USDA, USA)

  • Efthimia Tsakiridou

    (Aristotle University of Thessaloniki, Greece)

Abstract

China experienced dramatic growth throughout its entire economy during the 1978 to 2008 period. This significant economic expansion may be attributed to China's open policy after its 1978 overall economic reform. Our inter-temporal analysis of China’s export growth between 1978 and 2008, based on the statistical stochastic decomposition approach, indicates that, in the first ten years after China's trade openness, most of its export growth occurred in the extensive margin of trade, but later most of China's export growth appeared in existing varieties or the intensive margin of trade. We find that the distribution of the extensive margin is more dispersed than of the intensive margin, as we use the country-product approach. After applying formal tests, the results show that the intensive margin plays a significant role in the growth of China's exports.

Suggested Citation

  • Francis Tuan & Agapi Somwaru & Sun Ling Wang & Efthimia Tsakiridou, 2016. "The Dynamics of China's Export Growth: An Intertemporal Analysis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 37-57.
    • Handle: RePEc:seb:journl:v:14:y:2016:i:1:p:37-57
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    China; trade; intertemporal analysis; intensive margin; extensive margin;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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