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Essays on Regions, China, and Trade

出版	University of Chicago, Division of the Social Sciences, Department of Economics, 2012
ISBN	12674728719781267472878
URL	http://books.google.com.hk/books?id=LPLwnQEACAAJ&hl=&source=gbs_api

註釋This thesis consists of three essays. The first essay examines the claim that domestic trade protectionism across Chinese provinces appears to be high and rising even as China has become more integrated with the global economy (Young, 2000; Poncet, 2003). I examine the claim for the period 1992 to 2002 by exploiting Chinese provincial level domestic trade data. Because of the difficulty in measuring trade barriers and limited domestic trade data, existing studies on the topic relied on indirect inferences or estimation of border effects. I apply a method of calculating trade barriers that addresses the limitation of the data while making minimal estimation assumptions. I find that the ad valorem tariff-equivalent level of domestic trade barriers for all goods and services averaged across Chinese provinces are 54%, 56%, and 61% in 1992, 1997, and 2002, respectively. Trade barriers in manufacture goods, however, are substantially lower at 49% in 2002. Furthermore, I verify that domestic trade barriers rose from 1992 to 1997, as suggested by previous studies, and continued to rise in the later period of 1997 to 2002. As domestic trade is almost twice as large as international trade in China's economy, an implication of the findings of this paper is that domestic trade can potentially overtake international trade as the more important driver of China's growth if the decline in domestic trade barriers were to hasten.