Export bias related to its long-run equilibrium in China

ABSTRACT

This article investigated export bias related to its long-run equilibrium. By using the autoregressive distributed lag method, a dynamic econometric model was built to isolate export bias from its equilibrium. Using China’s dataset for 1982–2018, we found that export size deviated from its equilibrium level, and export bias accounted for a share of −22% to 35% of the equilibrium. Moreover, the results also confirmed that export size was cointegrated with the main explanatory variables, and export bias tended to fade in the long-run.

KEYWORDS:

• Export
• export bias
• long-run equilibrium
• cointegration

JEL CLASSIFICATION:

• C22
• C53
• F17

Acknowledgments

Many thanks for the support from the Key Project of Social Science of China, grant number 17ZDA096, and Postgraduate Research & Practice Innovation Project of Jiangsu Province, Grant number KYCX18_0212.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Key Project of Social Science of China [17ZDA096]; Postgraduate Research & Practice Innovation Project of Jiangsu Province [KYCX18_0212].