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Working paper 680

Loren Brandt and Kevin Lim, "Accounting for Chinese Exports", 2020-11-28
Main Text (application/pdf) (963,237 bytes)

Abstract: Rapid growth in Chinese exporting has spurred extensive research across multiple fields of economics investigating its effects. Yet, the causes of this growth remain less well-understood. We quantify the drivers of Chinese exporting using a general equilibrium model, estimated with detailed trade and production data that capture rich heterogeneity across destinations, firm ownerships, production locations, and sectors. Both external (foreign demand) and internal factors (productivity, firm entry, imported input access) were important drivers of high export growth from 2000-2007. A slowdown in export growth post-2007 is largely attributable to the disappearance of internal drivers, reinforced by weakening external factors.

Keywords: China, Exports, Imports, Trade, Productivity, WTO, Market Access

JEL Classification: F14;F47; O47; O53