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Abstract
The objective of this article is to evaluate the role of the determinants of China’s free trade agreements (FTAs) partner choices. Although we note China’s heterogeneous trade behavior, we assume that there are common traits as key drivers in China’s trade policy. Empirical results based on a logit model show that traditional variables such as distance, a dummy for Asia, and the number of regional trade agreements held by the partner country are statistically significant. Besides, and most importantly, we find that the larger the share of the partner country in China’s commodity imports the higher the probability to hold an FTA with China.
Notes
1 The number of WTO member countries rose from 135 in 2000 (January) to 164 in 2018 (April).
2 For an example of this application, see Pomfret (2007).
3 In this article, for the matter of simplification, primary goods exports are classified—based on the 2-digit code system of the HS-2017—as referring to products from chapter 1 to chapter 27. Nonprimary goods exports are, therefore, codes between 28 and 99 (Comtrade, Citation2018).
4 For a technical report on this agreement, see Vigfúsdóhir (2008).
5 For a technical report on the perspectives of this FTA agreement, see Kovziridze (2017).
6 Ministry of Commerce of the People’s Republic of China (MOFCOM, Citation2018).