Adjusted Estimates of United States-China Bilateral Trade Balances: An Update

16 Pages Posted: 21 Sep 2006

See all articles by K. C. Fung

K. C. Fung

University of California, Santa Cruz - Department of Economics

Lawrence J. Lau

Chinese University of Hong Kong-Institute of Global Economics and Finance

Yanyan Xiong

The Chinese University of Hong Kong (CUHK) - Department of Economics

Abstract

Large differences exist between the official United States and Chinese data on trade balances between the two countries. In this paper, four adjustments are made to the export and import data of the two governments: (i) freight along side (f.a.s.)-free on board (f.o.b.) and cost, insurance and freight (c.i.f.)-f.o.b. conversions; (ii) re-exports through Hong Kong (and elsewhere); (iii) re-export markups; and (iv) trade in services. After adjustments, our best estimate for the 2005 bilateral trade balance is $US170.7 billion, in China's favour, which is much larger than the official Chinese balance of $US114.2 billion but also much smaller than the official US balance of $US201.6 billion.

Suggested Citation

Fung, K. C. and Lau, Lawrence J. and Xiong, Yanyan, Adjusted Estimates of United States-China Bilateral Trade Balances: An Update. Pacific Economic Review, Vol. 11, No. 3, pp. 299-314, October 2006, Available at SSRN: https://ssrn.com/abstract=931751 or http://dx.doi.org/10.1111/j.1468-0106.2006.00317.x

K. C. Fung (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Santa Cruz, CA 95064
United States
831-459-3273 (Phone)
831-459-5077 (Fax)

HOME PAGE: http://econ.ucsc.edu/Faculty/facFung.shtml

Lawrence J. Lau

Chinese University of Hong Kong-Institute of Global Economics and Finance ( email )

13/F., Cheng Yu Tung Building
12 Chak Cheung St.
Shatin, NT
Hong Kong
+852 3943-1611 (Phone)
+852 2603-5230 (Fax)

HOME PAGE: http://www.igef.cuhk.edu.hk/ljl

Yanyan Xiong

The Chinese University of Hong Kong (CUHK) - Department of Economics

Shatin, N.T.
Hong Kong

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