What factors drive Chinese cities’ poultry trade flows? Assessing the role of regional governmental efficiency

This paper examines the role of regional government efficiency in poultry trade flows between Chinese cities. The study uses a novel database of bilateral trade flows at the local level, estimated for a sample of 313 Chinese cities in 2016. Empirical results are obtained by estimating a gravity model of trade, showing that the effect of government efficiency on poultry trade is heterogeneous across quintiles. We also find sharp differences in trade patterns across city sizes because the effect of regional government efficiency on a city’s poultry trade is positive for medium and large cities.