MARC Record from Library of Congress

LEADER: 02274cam a22002897a 4500
001 2008610810
003 DLC
005 20080814092124.0
007 cr |||||||||||
008 080702s2008 mau sb 000 0 eng
010 $a 2008610810
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aHarrigan, James.
245 10 $aChina's local comparative advantage$h[electronic resource] /$cJames Harrigan, Haiyan Deng.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2008.
490 1 $aNBER working paper series ;$vworking paper 13963
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 7/2/2008.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"China's trade pattern is influenced not just by its overall comparative advantage in labor intensive goods but also by geography. We use two variants of the Eaton-Kortum (2002) model to study China's local comparative advantage. The theory predicts that China's share of export markets should grow most rapidly where China's share is initially large. A corollary is that exporters that have a big market share where China's share is initially large should see the largest fall in their market shares. These market share change predictions are strongly supported in the data from 1996 to 2006. We also show theoretically that since trade costs are proportional to weight rather than value, relative distance affects local comparative advantage as well as the overall volume of trade. The model predicts that China has a comparative advantage in heavy goods in nearby markets, and lighter goods in more distant markets. This theory motivates a simple empirical prediction: within a product, China's export unit values should be increasing in distance. We find strong support for this effect in our empirical analysis on product-level Chinese exports in 2006"--National Bureau of Economic Research web site.
700 1 $aDeng, Haiyan.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 13963.
856 40 $uhttp://papers.nber.org/papers/w13963