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


Lau, Y-Y and Chan, M-H and Nguyen, H-O, Assessing the displacement effect of exports with gravity trade model: China's textile and clothing case and OBOR implications, Journal of International Logistics and Trade, 15, (1) pp. 19-32. ISSN 1738-2122 (2017) [Refereed Article]

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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 on other Asian developing countries. We further explored whether such displacement effect varies across Asian countries and the results showed that a more pronounced effect was found in low-income countries than high-income ones. Our findings suggest that the export competitiveness of China’s neighbors, i.e. both more and less developed Asian countries, are affected by the emergence of China in T&C Trade. The implications of China’s One Belt, One Road initiative are also discussed.

Item Details

Item Type:Refereed Article
Keywords:China, Asia, gravity model, textile and clothing exports, One Bell-One Road, Silk Road
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Transportation, logistics and supply chains not elsewhere classified
Objective Division:Transport
Objective Group:Other transport
Objective Field:Other transport not elsewhere classified
UTAS Author:Nguyen, H-O (Associate Professor Oanh Nguyen)
ID Code:116921
Year Published:2017
Deposited By:Maritime and Logistics Management
Deposited On:2017-05-25
Last Modified:2018-04-18

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