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Reconciling Trade Statistics from China, Hong Kong and Their Major Trading Partners--A Mathematical Programming Approach

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  • Wang, Zhi
  • Gehlhar, Mark
  • Yao, Shunli

Abstract

This paper develops a mathematical programming model to simultaneously estimate re-export markups and reconcile bilateral trade statistics between China, Hong Kong, and their trading partners. The model is applied to sector level trade flows to resolve discrepant reporting in an efficient manner. Adjustments in trade flows are based upon statistical reporters' reliability information. The program is implemented in GAMS and retains many desirable theoretical and empirical properties. Estimates are used for generating trade flows and markups for Hong Kong's re-exports used in the forthcoming version 7 GTAP Data Base. The model's flexibility has potential for expanded use in other regions where re-exports and associated markup cause discrepant trade flows.

Suggested Citation

  • Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2007. "Reconciling Trade Statistics from China, Hong Kong and Their Major Trading Partners--A Mathematical Programming Approach," GTAP Technical Papers 2517, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    • Handle: RePEc:gta:techpp:2517
    Note: GTAP Technical Paper No. 27
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=2517
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    Cited by:

    1. Oda, Hiromu & Noguchi, Hiroki & Fuse, Masaaki, 2022. "Review of life cycle assessment for automobiles: A meta-analysis-based approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    2. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.
    3. David Kucera & Xiao Jiang, 2018. "China and the great trade collapse: employment effects of falling exports to the EU and US," International Economics and Economic Policy, Springer, vol. 15(3), pages 629-659, July.
    4. Zhi Wang & Mark Gehlhar & Shunli Yao, 2007. "A Globally Consistent Framework for Reliability-based Trade Statistics Reconciliation in the Presence of an Entrepôt," Trade Working Papers 22715, East Asian Bureau of Economic Research.

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