The Impact of China on the Exports of Other Asian Countries
36 Pages Posted: 30 Sep 2004 Last revised: 5 Jun 2022
Date Written: September 2004
Abstract
We analyze the impact of China's growth on the exports of other Asian countries. Our innovation is to distinguish the increase in China's demand for imports from its increased penetration of export markets. Using the gravity model, we disaggregate among commodity types and account for the endogeneity of Chinese exports. We confirm the tendency for China's exports to crowd out the exports of other Asian countries. But this effect is felt mainly in markets for consumer goods and hence by less-developed Asian countries, not in markets for capital goods or by the more advanced Asian economies for which machinery and equipment are a significant fraction of exports. At the same time, there has been a strong tendency for a rapidly growing China to suck in imports from its Asian neighbors. But this effect is mainly felt in markets for capital goods, where China's income elasticity of import demand is highest, and thus by the more advanced Asian economies. Hence, more and less developed Asian countries are being affected very differently by China's rise.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Economic Impacts of China's Accession to the World Trade Organization
-
The Nature and Distortions to Agricultural Incentives in China and Implications of WTO Accession
By Jikun Huang and Scott Rozelle
-
Was China the First Domino?: Assessing Links between China and the Rest of Emerging Asia
By John G. Fernald, Hali J. Edison, ...
-
Trade Liberalization in China's Accession to the World Trade Organization
-
China and Emerging Asia: Comrades or Competitors?
By John G. Fernald, Prakash Loungani, ...
-
The Us-China Bilateral Trade Balance: its Size and Determinants
By Robert C. Feenstra, Wen Hai, ...