Sponsored by University of International Business and Economics
ISSN 1002-4670 CN 11-1692/F
12 issues per year
Discipline(s): Economics & Finance
Current Issue: Issue 09, 2015
Journal of International Trade is supervised by Ministry of Education of PRC, and sponsored by University of International Business and Economics. It aims to build up the top one academic journal with an international perspective in the field of economy and trade in China, and to provide services for China’s economic progress and enterprise development. The scope covers East Asia economic cooperation, regional trade, service trade, international investment and transnational operation, and international finance. The journal is included in CSSCI.
Anthony Vennables(UK), David Round(Australia), Edmund Phelps(U.S.A.), E. Kwan Choi, Francisco Rivera-Batiz(U.S.A.), Gordon Anderson(Canada), Jagdish N. Bhagwati(U.S.A.), John Whal
By building a spatial econometric model based on the geographical distance among the 221 cities in China from 2003 to 2011, this paper examines whether FDI inflow increases the tax reveune of cities in China. It is found that FDI has a negative impact on tax increase, with 1% increase in FDI resulting in 0.31% to 0.37% decrease in tax income. The tax income of a city has a significantly positive corelation with that of the neighboring cities, possibly as a result of the economic policies for attracting foreign investment introduced by local governments such as various tax breaks and tax incentives to improve employment, promote regional GDP growth or boost administrative achievements. While these preferential policies can promote GDP growth, they could inevitably bring about the loss of financial resources of the local governments which may put the local government into “prisoner' s dilemma.” To address this, local governments should coordinate their policies on FDI and manage to promote the tax revenue growth while enhancing the economic development.
Impact of human capital composition, relative wage and international migration on income distribution
As an important part of economic globalization, the influence of international migration on income inequality is examined by growing literature. This paper first builds an overlapping generation model to examine how the international migration of skilled workers influences the income distribution of host countries in the context of endogenous human capital. The results show the immigration of skilled workers not only affects the income disparity between native skilled workers and unskilled workers in host countries, which is termed “relative income effect” on human capital, but also affects the relative proportion of native skilled workers and unskilled workers in host countries, which is called “composition effect” on human capital. Therefore, the relationship between international immigration and income inequality in host countries is determined by the net effect of “relative income effect” combined with “composition effect.” Based on OECD's data from 2000 to 2011, this paper employs the dynamic panel data model to carry out system GMM estimation of the impact of immigration on income inequality in host countries. The empirical results suggest that in the short run, foreign immigration can serve to reduce the income inequality in host countries; however, in the long run, foreign immigration can increase income inequality in host countries.
R&D knowledge spillovers of agricultural products trade: an empirical analysis based on spatially extended Coe–Helpman model
Agricultural products trade not only brings the importers physical explicit knowledge such as germ plasm resources, but also brings tacit knowledge such as agricultural managerial experiences which can contribute to subsequent spatial spillovers to the adjacent areas of the agricultural importing regions. Recognizing tacit knowledge as a spatial omitted variable from the tacit knowledge linear model, the paper develops the linear Coe-Helpman paradigm in international R&D spillovers into a non-linear spatial model. Using panel data of 31 provinces from 1999 to 2011, the tests show that not only the agricultural products trade knowledge produce significant first spillover effects on the agricultural total factor productivity in the importing region but the tacit knowledge has significant secondary spillover effects on other regions adjacent to importing regions. Furthermore, the secondary spillover effect is greater than the first spillover effect.
This paper analyzes the impact mechanism of intellectual property rights (IPR) protection on margins of export by introducing IPR protection into heterogeneous firm trade model. Then, it constructs an extended trade gravity model incorporating IPR protection variables. By applying OLS and instrumental variable estimation method, this paper investigates the effect of IPR protection in the export market on the dual margins of China’s export growth based on China’s manufacturing products export data of 95 export markets during 2002 to 2013. The results show the effect of IPR protection on the extensive margin is significantly positive and that on the intensive margin is significantly negative, indicating that IPR protection promotes China’s export growth through the extensive margin. Economic scale, geographical distance, fixed trade cost and multilateral resistance work along the extensive margin to impact China’s export growth. The above results are robust for estimations on technology intensive industry, different decomposition approaches of export margins and different measurement indicators under IPR protection.
Technology input, openness and “resource curse”: an examination of terms of trade with China's provincial panel data
Employing the threshold model and adopting provincial panel data from 1997 to 2012, this paper conducts an empirical study to reveal the interactional mechanism between technology input, openness degree and the “resource curse” phenomena, test the validity of the threshold effect and evaluate the influence of the threshold effect. The research finds that technology input and the openness degree have a threshold effect on the “resource curse” phenomenon; when technology input and openness degree are higher than the respective threshold values 0.0176 and 1.1653 they can effectively improve the relationship between resources and economic growth and promote regional economic development; abundant natural resources will not hinder the development of the regional economy, and the crux of the appearance of “resource curse” in the regional economy is resource dependency; the labor intensive and low–tech characteristics of the natural resource sector make technology input and openness degree the main influencing factors of natural resource hindering China’s economic growth.