2013 | OriginalPaper | Chapter
Can Strategic Trade Policies Improve Comparative Advantages of Exports? A Heterogeneous Panel Analysis of Chinese Agro-Based Manufactures
Authors : Yu Hong, Hong-wei Su
Published in: Advanced Technology in Teaching
Publisher: Springer Berlin Heidelberg
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
This study tests for the effects of export oriented strategic trade policies on the comparative adv0061ntages of Chinese agro-based manufactured products, which are consisted of 39 SITC (Rev.3) 3-digit products. "Net exports ratio " is employed to capture the strength of strategic trade policies, while "revealed symmetric comparative advantage" is used to measure the comparative advantages. Using yearly data from 1992 to 2008, a heterogeneous panel cointegration test indicates a cointegrating relation across the NX and RSCA panels. No short-run Granger causal relationship of either direction can be identified. In the long-run, however, there exists a bi-directional causality. By examining the coefficients of the first-differenced lagged terms in panel vector error correction models, this study argues that the net exports of Chinese agro-based manufactures are virtually based on the comparative advantages, and the strategic trade policies which are featured by export promotion may contrarily hurt the comparative advantages in the long-run.