Structural adjustments and international trade : theory and evidence from China
Research output: Working Papers › Working paper
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Place of Publication | London |
| Publisher | London School of Economics and Political Science |
| Number of pages | 71 |
| Publication status | Published - Nov 2017 |
| Externally published | Yes |
Publication series
| Name | CEP Discussion Paper |
|---|---|
| Publisher | Centre for Economic Performance, London School of Economics and Political Science |
| No. | 1508 |
| ISSN (Print) | 2042-2695 |
Link(s)
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(e615d04b-f0fa-42bd-9d69-05acd53928ce).html |
|---|
Abstract
This paper studies how changes in factor endowment, technology, and trade costs jointly determine the structural adjustments, which are defined as changes in distributions of production and exports. We document the structural adjustments in Chinese manufacturing firms from 1999 to 2007 and find that production became more capital-intensive while exports did not. We structurally estimate a Ricardian and Heckscher-Ohlin model with heterogeneous firms to explain this seemingly puzzling pattern. Counterfactual simulations show that capital deepening made Chinese production more capital-intensive, but technology changes that biased toward the labor-intensive sectors and trade liberalizations provided a counterbalancing force.
Research Area(s)
- structural adjustments, comparative advantage, heterogeneous firm
Citation Format(s)
Structural adjustments and international trade : theory and evidence from China. / Huang, Hanwei; Ju, Jiandong; Yue, Vivian Z.
London : London School of Economics and Political Science, 2017. (CEP Discussion Paper; No. 1508 ).Research output: Working Papers › Working paper
