Trade partners and the change of China’s total factor productivity: an empirical analysis based on segmented trade data I2C, NI2P, NI2E, E2C, and E2P

LIN Jihong1 YANG Junling1

(1.School of Economics, Xiamen University 361005)

【Abstract】On the basis of the latest trade division method from abroad, the dynamic panel model is employed in this study to empirically analyze the relationship between trade partners and the change of China’s total factor productivity (TFP). The results show that: (1) not all types of trade growth could bring about the technology spillover effect and learning effect, among which E2P and NI2P fail to improve TFP, which is closely related to China’s extensive growth mode of foreign trade and economic development; (2) developed trade partners fail to drive the technical progress completely, and the segmented E2P and NI2P have a significant negative effect on China’ s TFP; and (3) NI2E with non-developed trade partners has a positive effect on China’s TFP growth.

【Keywords】 trade partners; trade; total factor productivity; I2C/NI2P/NI2E/E2C/E2P;

【DOI】

【Funds】 Key Project of Philosophy and Social Sciences Research, Ministry of Education (13JZD010) Initial Results of Project (12BJY073) Supported by National Social Science Foundation

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(Translated by LIU Qin)

    Footnote

    [1]. 1 The accounting result is not listed here due to the limitation of length. If you require it, please ask the author for it. [^Back]

    [2]. 2 Please refer to the following part of this article for the specific explanation. [^Back]

    [3]. 3 See the detailed explanation below. Because of the limitation of length, no more tautology here. [^Back]

    [4]. 4 China’s trade partner countries are divided according to the level of economic development based on the latest modified results of the division of countries across the world published in Human Development Report 2010 on November 4, 2010 by United Nations Development Programme (UNDP). [^Back]

    References

    Baldwin r Lopez-Gonzalez-J., (2014) “Supply Chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses,” The World Economy.

    Rahman J, Zhao T., (2013) “Export Performance in Europe: What Do We Know from Supply Links?” Imf Working Papers.

This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 11, Pages 83-95

November 2015

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Article Outline

Abstract

  • Introduction
  • 1 Theoretical analysis and empirical hypothesis
  • 2 Segmented index and accounting method in international trade with global production network taking the lead
  • 3 Model construction of the relationship between China’s TFP change and its trade partners
  • 4 Empirical analysis of the relationship of trade partners and the change of China’s TFP
  • 5 Policy implications
  • Footnote

    References