Abstract:
This paper decomposes the growth of China’s export into three parts: the extensive margin, quantity margin and price margin. Using China’s export data at HS-6 digit level, we perform an empirical analysis to study the impact of trade facilitation and FDI on the three margins. Bilateral trade facilitation has a significant effect on the extensive margin and quantity margin, with China playing a more important role. But the trade facilitation of the importing country has no significant effect on the price margin. FDI has significant effect on all the three margins, with the most effect on the quantity margin. This paper provides an empirical support for the transformation of China’s export into diversity and quality upgrading.
GAO Yue, REN Yong-lei, FENG Zhi-yan.Impact of Trade Facilitation and FDI on the Three Margins of China’s Export Growth[J] Economic Survey, 2014,V31(6): 46-51