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Title:	Trade flows and trade potential : China and its major trading partners
Authors:	Meng Xiang Na (P50306)
Supervisor:	Noor Aini Khalifah, Professor Dr.
Keywords:	Trade flows International economic relations
Issue Date:	15-Feb-2012
Description:	During the last three decades, China has experienced vast economic reforms and achieved many great successes. Nowadays, China plays an important role as the world's largest goods supplier. However, due to the subprime-born-financial crisis, the economy of China was impacted badly and its export advantage which is the major driver of its economic growth is being challenged. To examine the issue of trade flows and trade potential in China, this study employs the popular gravity model which is estimated using panel data set of bilateral export flows from China and its 21 major trading partners over the period 1980-2006. This study incorporates into the static model the time-varying multilateral resistance terms to obtain unbiased estimates. In addition, to gauge the dynamic effects of trade, this study also estimates a dynamic version of the gravity model using Instrumental Variables estimator. The results indicate a positive and significant coefficient estimate of the gross domestic product, foreign direct investment, and colonies variables for both the static panel data and dynamic panel data estimators. The effects of the variables population, endowment and exchange rate on export flows are mixed. The negative and significant coefficient estimate of common land and common language dummy variables on export flows in static models, which indicate that they are not the major trade barriers between countries. Forming free trade agreements (FTAs) with Asia-Pacific Economic Cooperation countries and Association of Southeast Asian Nations will generate trade creation among members, which require the Chinese government to accelerate in enhancing FTA strategies in the future. The results have shown us that the Chinese government has to transform its export structure to keep its export advantage and has to expand economic cooperation through FTAs to trade more from the regional economic growth.,Master / Sarjana
Pages:	123
Call Number:	HF1379.M438 2012
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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