15 Pages Posted: 19 Apr 2012
Date Written: May 2012
This paper explores whether there is sufficient lumpiness or heterogeneity in the relative endowments (capital, labor, and skills) of the regions of China to affect China's specialization and trade patterns. It does so using both the lens condition to identify the violation of factor price equalization across regions, and direct evidence on regional trade and specialization. The results are sensitive to the level of regional aggregation. The paper concludes, however, that China was sufficiently lumpy as recently as 2004 to affect its pattern of international trade.
Suggested Citation: Suggested Citation
Lu, Meng and Milner, Chris and Yu, Zhihong, Regional Heterogeneity and China's Trade: Sufficient Lumpiness or Not? (May 2012). Review of International Economics, Vol. 20, Issue 2, pp. 415-429, 2012. Available at SSRN: https://ssrn.com/abstract=2042444 or http://dx.doi.org/10.1111/j.1467-9396.2012.01030.x
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $38.00 .
File name: j-9396.
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.