Cookies?
Library Header Image
LSE Research Online LSE Library Services

Structural adjustments and international trade: theory and evidence from China

Huang, Hanwei, Ju, Jiandong and Yue, Vivian Z. (2017) Structural adjustments and international trade: theory and evidence from China. CEP Discussion Papers (CEPDP1508). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

[img]
Preview
Text - Published Version
Download (985kB) | Preview

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

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2017 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce
JEL classification: F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure; Industrial Price Indices
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 30 Jan 2018 17:11
Last Modified: 07 Jun 2019 23:26
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/86601

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics