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Forces behind China's Surging Trade: Competitiveness or Policy Driven?

Author

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  • Somwaru, Agapi
  • Tuan, Francis C.
  • Gehlhar, Mark J.
  • Diao, Xinshen
  • Langley, Suchada V.

Abstract

This paper delves into China's differential growths in trade flows with high income countries by focusing on bilateral content of trade data over the time period 1962-2005. Unlike other studies, we account for end use of traded goods ranging from primary, intermediate, and finished goods because China's policies impact all segments China's trade flows. China's trade growth patterns with major high income countries clearly indicate that the adjacency-neighborhood partners alone is unlikely to explain its unprecedented growth in exports and imports. China's outstanding performance in trade growth can be traced back to the 1970s with changes in its policies and increased involvement in the international segmentation of production processes and preferential tariff treatment to assembling and processing activities.

Suggested Citation

  • Somwaru, Agapi & Tuan, Francis C. & Gehlhar, Mark J. & Diao, Xinshen & Langley, Suchada V., 2007. "Forces behind China's Surging Trade: Competitiveness or Policy Driven?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9907, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9907
    DOI: 10.22004/ag.econ.9907
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    Cited by:

    1. 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.

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    Keywords

    International Relations/Trade;

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