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China'S Export Margins And Their Growth Sources: An Analysis Of Extensive Margin And Intensive Margin

Author

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  • YONG-LIANG ZHAO

    (College of Economics, Jinan University, Guangzhou 510632, P. R. China)

  • DE-XUE LIU

    (College of Economics, Jinan University, Guangzhou 510632, P. R. China)

  • HUA-LIN PU

    (College of Economics, Jinan University, Guangzhou 510632, P. R. China)

  • ZI-HUI YANG

    (Lingnan College, Sun Yat-sen University, Guangzhou 510632, P. R. China)

Abstract

Based on the theoretical methods by Feenstra and others, this paper applies the empirical panel data of years 2000–2007 to measure the growth of China's provincial import and export for both extensive and intensive margins. Extensive margin reflecting the level of variety becomes a significant factor for China's export and is slightly higher than intensive margin. The empirical results indicate that emerging industrial countries have gradually become the important new markets for China's export variety. As for the variables affecting variety growth, trade barriers are found to play a dominant role as invisible constraints, and small and medium enterprises contribute significantly to variety growth, while foreign investment and market-oriented reforms have become the driving force. Moreover, trade variety has been identified as the third factor of economic growth, in addition to the two traditional factors (capital and labor).

Suggested Citation

  • Yong-Liang Zhao & De-Xue Liu & Hua-Lin Pu & Zi-Hui Yang, 2013. "China'S Export Margins And Their Growth Sources: An Analysis Of Extensive Margin And Intensive Margin," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 58(04), pages 1-20.
    • Handle: RePEc:wsi:serxxx:v:58:y:2013:i:04:n:s021759081350029x
    DOI: 10.1142/S021759081350029X
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    References listed on IDEAS

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    1. Gregory Corcos & Delphine M. Irac & Giordano Mion & Thierry Verdier, 2008. "The Determinants of Intra-Firm Trade," Development Working Papers 267, Centro Studi Luca d'Agliano, University of Milano.
    2. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1-1.
    3. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    4. Addison, Douglas M., 2003. "Productivity growth and product variety : gains from imitation and education," Policy Research Working Paper Series 3023, The World Bank.
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