May 2013
Intermediate to advanced
204 pages
3h 33m
English
Content preview from Vertical Specialization and Trade Surplus in China
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Appendix
Methodology and hypotheses
The measure of VS as determined by Hummel et al. (2001) has been applied to the Chinese economy. The formula used is provided below:
where 
, the sum of all industrial sectors VS of year t;
, the sum of all industrial sectors export of year t; and
VSSt = the VS share of total export of year t.
VS for each industry sector is determined by:
where = imported intermediate good used by sector i for year t (including ...
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