Taking Grubel and Lloyd to dance in the city: Domestic intra-industry trade in China
We assess theoretical predictions regarding the determinants of domestic intra-industry trade in large panel data of pairs of 276 cities, as well as pairs of 42 sectors, over three years in China. We find that geographical and technological distances are the main impediments of intra-industry trade, being more important than relative endowment differences. This confirms expectations based on new trade theory in a novel data environment.
Authors
- Ouyang Jie
- Peter Egger (ORCID: https://orcid.org/0000-0002-0546-1207)
- Jie Li (ORCID: https://orcid.org/0000-0003-3312-6593)
Institutions
- Jinan University (CN)
- ETH Zurich (CH)
- Institute of Industrial Economics (CN)
- Centre for Economic Policy Research (GB)
Publication Details
- Journal
- Economics Letters
- Published
- 2024-08-22
- DOI
- https://doi.org/10.1016/j.econlet.2024.111925
- Citations
- 2
- Primary Topic
- Global trade and economics
- Type
- article
- Field-Weighted Citation Impact
- 1.66
Funders
- Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung
- National Natural Science Foundation of China
- Ministry of Education of the People's Republic of China
- National University's Basic Research Foundation of China
- Fundamental Research Funds for the Central Universities