China's Gains from WTO Accession: Imports vs Exports

Lai, Ting‐Wei; Riezman, Raymond; Wang, Ping

doi:10.1111/roie.12240

Cited by 6 publications

(2 citation statements)

References 8 publications

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“…The paper from Lai et al (2016) confirms the fact that China has huge trade from its 2002 accession to the WTO. The acceleration of OFDI was a key drivers for China’s pursuit of WTO membership (Blanchard, 2013).…”

Section: Discussion and Comparison With Other Studiesmentioning

confidence: 61%

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Shahriar

Kea

2019

IJOEM

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Purpose The purpose of this paper is to investigate the major determinants of China’s outward foreign direct investment (OFDI) in the economies along the “Belt & Road” Initiative (BRI afterward). China works on to advance the agenda of the BRI both at home and abroad. The BRI is set up to promote connectivity in five key areas: policy coordination, infrastructure connectivity, trade facilitation, financial cooperation and people-to-people contacts. Design/methodology/approach The existing literature is inconclusive with regards to the motives, patterns and determinants of the Chinese OFDI. The authors are, therefore, motivated to undertake this study to shed some new light on the influencing factors of the Chinese OFDI. The authors have made a unique data set that consists of China and its 64 partnering countries of the BRI over a time period of 12 years spanning from 2004 to 2015. This time period is chosen on the chief consideration of data availability. The authors have a balanced panel, and applied the gravity model in line with the theoretical arguments and econometric developments. Findings The paper assumes that China’s OFDI along the BRI was a function of gross domestic product (GDP), income per capita, distance and WTO. The findings showed that GDP, per capita income and distance were the key determinants of the OFDI. China’s entry into the WTO did not strongly affect the OFDI. China maintained a tradition of historical relationships along the BRI economies. After all, China is relocating its investment resources in line with the consideration of its partnering countries’ economic size, cross-border distance and per capita income. Originality/value This study is the first of its kinds to analyze the determinants of OFDI by means of gravity model. The authors have covered all the countries along the BRI. Hence, this paper aims to make a substantial contribution to the literature, both from a scientific and a policy perspective.

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Section: Discussion and Comparison With Other Studiesmentioning

confidence: 61%

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Shahriar

Kea

2019

IJOEM

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“…Import trade is of great significance in the economic development of a country or region, which is conducive to improving the production efficiency of enterprises and promoting the improvement of export quality. After joining the WTO, China experienced impressive export growth, which caused a huge trade surplus (Lai et al, 2016). This trade surplus resulted in substantial trade frictions (Xing & Detert, 2010) such as the US–China trade war (Chen et al, 2019; Fatma & Bharti, 2019).…”

Section: Introductionmentioning

confidence: 99%

New driving force for China’s import growth: Assessing the role of cross‐border e‐commerce

Guo

Zhang

2021

World Economy

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This paper investigates the role of cross‐border e‐commerce on China's import growth, using the promulgation of cross‐border e‐commerce‐related policies since 2012 as a quasi‐natural experiment and using the ‘Cross‐border E‐commerce Retail Import Commodity List’ to identify cross‐border e‐commerce industries. Our difference‐in‐difference results show that cross‐border e‐commerce has significantly boosted China's import growth. Dynamic effects show that while China's imports were low prior to 2012, cross‐border e‐commerce has increased China's imports significantly since 2012, verifying the validity of our baseline results. Placebo tests and a series of robustness checks further confirm the validity and robustness of the baseline results. Further analysis reveals that cross‐border e‐commerce has mainly promoted imports from developed countries, and primarily facilitated imports of clothing, food and daily necessities. Mechanism analysis shows that cross‐border e‐commerce not only stimulated both the intensive and extensive margins in import growth, but also reduced cultural distances and increased China's imports from countries with larger cultural distances substantially. However, geographical and institutional distances still matter and exhibit significantly negative effects on China's cross‐border e‐commerce imports.

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