European Parliament Library

China’s Changing Trade Elasticities, Jahangir Aziz, Xiangming Li

China's sectoral trade composition, product quality mix, and import content of processing exports have all changed substantially during the past decade. This has rendered trade elasticities estimated using aggregate data highly unstable, with more recent data pointing to significantly higher demand and price elasticities. Sectoral differences in these parameters are also very wide. All this suggests greater caution in using historical data to simulate the response of the China's economy to external shocks and exchange rate changes. Analyses based on models whose estimated coefficients largely reflect the China of the 1980s and 1990s are likely to turn out to be wrong, perhaps even dramatically
Table Of Contents
Contents; I. Introduction; II. How China's Trade Has Changed; Figures; 1. Share of Exports in the World; 2. Trade Developments; 3. Trade by Ownership; 4. Import Tariffs; 5. Composition of Trade; 6. Sophistication Index of Exports; 7. Evolution of Processing Trade; 8. Rising Domestic Input in Processing Exports; III. Emperical Analysis of China's Trade Elasticities; A. Model Specification and Data; 9. Regional Trade Balance; Tables; 1. Sectoral Composition of Processing Exports; B. Empirical Results Using Aggregate Data; 2. Aggregate Trade Elasticity; 10. Aggregate Trade Elasticity
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (29 p.)
Specific Material Designation
Form Of Item

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