Decomposing China’s export growth into extensive margin, export quality and quantity effect

This paper decomposes the growth of China’s export into three parts: growth in extensive margin, increased quantity and increased prices; we perform a series of empirical analyses using China’s export data at the HS-6 digit level to analyze the characteristics of China’s export growth. China’s export growth depends more and more on price increases, less and less on quantity expansion. Compared with the rest of world, China’s export price is in the process of improving, not at an increasing speed but at a declining pace. China’s export performance is better than the rest of the world after the financial crisis and in 2008–2010. This reflects a strategy of lowering price and promoting sales in 2009 when facing a slump in export markets; and resuming price increases and increasing sales moderately in reaction to improving export conditions in 2010.

Full-text available in .pdf

Advertisements

Comments do not require moderator approval but this will only last as long as everyone plays fair

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s