May 2013
Intermediate to advanced
204 pages
3h 33m
English
Content preview from Vertical Specialization and Trade Surplus in China
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A cointegration analysis of the linkage between US exports to China and US imports from China based on vertical specialization
Abstract:
Based on monthly data from 2005–2012, using the econometric method, this chapter discusses the relationship between US Exports to China and US Imports from China. The empirical results show that there is a long-run cointegration relationship and a one-way causality between the changes of US Exports to China and US Imports from China. The error correction model shows that the short-term fluctuation of US Exports to China would cause the same type of change in US Imports from China. The impulse response function shows that US Exports to China have an important impact on US Imports from China. As a result, ...
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