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Assessing the displacement effect of exports with gravity trade model: China’s textile and clothing case and OBOR implications

Citation

Lau, YY and Chan, MH and Nguyen, H-O, Assessing the displacement effect of exports with gravity trade model: China's textile and clothing case and OBOR implications, Proceedings of the OBOR Conference 2016, 1-2 December 2016, Melbourne, Victoria, Australia, pp. 1-25. (2016) [Refereed Conference Paper]


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Abstract

This paper employs the gravity model to investigate how the growth of China’s textile and clothing (T&C) exports is displacing the exports of other Asian developing countries over the 1990-2015 period. Aggregate analyses were undertaken, and the endogeneity of Chinese exports were accounted by applying instrumental variables with country fixed effects. It was found that there was a negative impact of China’s emergence on T&C exports from other Asian developing countries. Further, we explored if the displacement effect varies across Asian countries and the result showed that a more pronounced effect was found in low-income than in high-income Asian countries. Therefore, the export competitiveness of China’s neighbours, both more and less developed Asian countries, are affected by the emergence of China in T&C Trade. The implications for China’s One Belt, One Road initiative are also discussed

Item Details

Item Type:Refereed Conference Paper
Keywords:International trade, gravity model, econometric analysis, China
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation and Freight Services
Research Field:Transportation and Freight Services not elsewhere classified
Objective Division:Transport
Objective Group:Other Transport
Objective Field:Transport not elsewhere classified
Author:Nguyen, H-O (Dr Oanh Nguyen)
ID Code:114333
Year Published:2016
Deposited By:Maritime and Logistics Management
Deposited On:2017-02-13
Last Modified:2017-03-15
Downloads:2 View Download Statistics

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