Has China Displaced Other Asian Countries' Exports?

University of Nottingham Research Paper No. 2006/21

41 Pages Posted: 3 Aug 2006

See all articles by David Greenaway

David Greenaway

University of Nottingham - School of Economics

Aruneema Mahabir

University of Nottingham - Leverhulme Centre for Research on Globalisation and Economic Policy (GEP)

Chris Milner

University of Nottingham - School of Economics

Date Written: 2006

Abstract

This paper uses gravity modelling to explore whether and how the growth of China's exports is displacing exports of other Asian countries to third markets over the period 1990-2003. Chinese exports are defined both narrowly and more broadly to include exports from Hong Kong. We investigate whether the displacement effect on Asian exports differs when exports from Hong Kong and China are combined compared to the narrow case of Chinese exports only. Aggregate and disaggregated analyses are undertaken. In the latter, we explore whether the displacement effect varies across Asian countries and in trade with different types of countries. We find evidence of a displacement effect which is more pronounced in developed markets and stronger for Hong Kong and China combined. Further it is the high income Asian exporters that experienced a greater displacement effect. We also investigate whether China's development has generated any offsetting effects on its neighbours' exports to China itself and find that Chinese growth has indeed increased China's imports from the Asian countries in the sample and in particular Japan and Korea.

JEL Classification: F14

Suggested Citation

Greenaway, David and Mahabir, Aruneema and Milner, Chris, Has China Displaced Other Asian Countries' Exports? (2006). Available at SSRN: https://ssrn.com/abstract=920827 or http://dx.doi.org/10.2139/ssrn.920827

David Greenaway (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

Aruneema Mahabir

University of Nottingham - Leverhulme Centre for Research on Globalisation and Economic Policy (GEP) ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Chris Milner

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

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