China's Trade Flows: Changing Price Sensitivies and the Reform Process

January 1, 1999

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Anuradha Dayal-Gulati, and Valerie Cerra. China's Trade Flows: Changing Price Sensitivies and the Reform Process, (USA: International Monetary Fund, 1999) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Over the past 20 years, the Chinese authorities have undertaken wide-ranging reforms of their exchange and trade systems that have steadily reduced the role of planning and increased the importance of market forces. As these reforms have taken root, relative prices and domestic and foreign demand would be expected to have played a bigger role in determining trade flows. Econometric estimates of export and import equations provide evidence that trade flows have indeed become increasingly price sensitive, owing to the gradual liberalization of the trade regime over time, and to the growing shares of foreign-funded enterprises and manufactures in total trade.

Subject: Balance of payments, Exports, Foreign direct investment, Foreign exchange, Imports, International trade, Real effective exchange rates

Keywords: Asia and Pacific, China, Econometric models, Export transaction, Export volume growth, Exports, Foreign direct investment, Foreign trade, Form export equation, Import ban, Import behavior, Import demand and supply equation, Import equation, Import plan, Import supply, Import volume, Imports, Nonmandatory import, Price elasticity, Real effective exchange rates, Trade reform, World imports, WP

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/001
Stock No:

WPIEA0011999
ISBN:

9781451841619
ISSN:

1018-5941

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