The extensive margin in international trade – the case of the Czech Republic and China
The extensive margin in international trade – the case of the Czech Republic and China

Author(s): Veronika Končikova, Miroslav Hloušek
Subject(s): Business Economy / Management, Economic policy, International relations/trade
Published by: Masarykova univerzita nakladatelství
Keywords: trade; China; Czech Republic; extensive margin;
Summary/Abstract: This paper deals with empirical analysis of international trade between China and the Czech Republic during the last fifteen years. The goal of the paper is to find out if the growth in export is of intensive or extensive type. We follow methodology of Kehoe and Ruhl (2013) and use detailed (four-digit) tradestatistics on the value of trade flows by commodity according to Standard International TradeClassification (SITC) codes. We find out that the goods that were traded the least in the benchmark year account for disproportionate share in trade after liberalization and reduction of trade barriers. Between the years 1999 and 2012 there was a significant increase in the goods which had not been traded previously.

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