College of Economics
Beijing, P.R. China
Institutional Affiliation: China Agricultural University
Information about this author at RePEc
NBER Working Papers and Publications
|April 2007||Regionalization, Changes in Home Bias, and the Growth of World Trade|
with John Whalley: w13023
In this paper we use numerical modeling methods to quantitatively assess the impacts of changes in home bias within regions on the growth of world trade among major blocs over the last three decades. Existing work focuses on the impacts of trade barrier, transport cost and income changes on trade growth, rather than preferences. Removing changes in home bias over the last three decades from our global general equilibrium model reduces world trade by 27% compared to actual world trade in 2004 in our central case scenario. These results support the view that world trade among major blocs has became more regionalized rather than internationalized which we suggest may be due to a proliferation of free trade agreements. We calibrate a simple global trade model of inter bloc trade to both 1975 a...
|August 2006||Home and Regional Biases and Border Effects in Armington Type Models|
with John Whalley: w12439
We discuss biases in preferences and their trade effects in terms of impacts on non-neutral trade flows motivated by recent literature on both home bias and the border effect. These terms take on multiple definitions in the literature and are often used interchangeably even though they differ. The border effect refers to a higher proclivity to trade behind rather than across national borders and is usually defined by the coefficients of regional dummies from an estimated gravity model. It can be present both in data and in counterfactual model solutions. Sometimes the reduced form of the gravity model used is asserted to reflect an Armington type model. For the border effect to occur as a model outcome, a structural model with at least 2 home regions and 1 country abroad is needed. In cont...
Published: Whalley, John & Xin, Xian, 2009. "Home and regional biases and border effects in Armington type models," Economic Modelling, Elsevier, vol. 26(2), pages 309-319, March. citation courtesy of
|May 2006||China's FDI and Non-FDI Economies and the Sustainability of Future High Chinese Growth|
with John Whalley: w12249
This paper presents assesses of the contribution of inward FDI to China%u2019s recent rapid economic growth using a two stage growth accounting approach. Recent econometric literature focuses on testing whether Chinese growth depends on inward FDI rather than measuring the contribution. Foreign Invested Enterprises (FIEs), often (but not exclusively) are joint ventures between foreign companies and Chinese enterprises, and can be thought of as forming a distinctive subpart of the Chinese economy. These enterprises account for over 50% of China%u2019s exports and 60% of China%u2019s imports. Their share in Chinese GDP has been over 20% in the last two years, but they employ only 3% of the workforce, since their average labor productivity exceeds that of Non-FIEs by around 9:1. Their product...
Published: Whalley, John and Xian Xin. "China's FDI and Non-FDI Economies and the Sustainability of Future High Chinese Growth." China Economic Review 21, 1 (March 2010): 123-135. citation courtesy of