China's Foreign Trade Behavior in the 1980s: An Empirical Analysis

64 Pages Posted: 15 Feb 2006

See all articles by Adi Brender

Adi Brender

Bank of Israel - Research Department

Date Written: January 1992

Abstract

This paper studies the behavior of China`s foreign trade in the 1980`s. Chinese customs data are used to construct, for the first time, quarterly unit value and volume series that are then used to estimate foreign trade income and price elasticities. The estimated export supply price elasticities are negative and became even more negative after the reforms in 1985. The import price elasticity is very close to minus one. These results suggest that administrative controls still have a dominant effect on China`s trade and may also suggest that reforms in the managemnt system of Chinese enterprises were not sufficient to create profit maximizing behavior by managers.

JEL Classification: C49, F14, O53, P29

Suggested Citation

Brender, Adi, China's Foreign Trade Behavior in the 1980s: An Empirical Analysis (January 1992). IMF Working Paper No. 92/5, Available at SSRN: https://ssrn.com/abstract=884537

Adi Brender (Contact Author)

Bank of Israel - Research Department ( email )

PO Box 780
Jerusalem 91007
Israel
+972 2 655 2618 (Phone)
+972 2 655 2657 (Fax)

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