LUO Changyuan, WEI Na：The Price Effect of China's Export:Evidence from Products of Machinery and Transport Equipment

Abstract：This paper explores the price effect of China's export on other countries and regions. We analyze the price effect of China's export to 21 medium-high income countries in the markets of the US, EU, and Japan. The estimation results show that the export price of China and the export prices of these 21 countries are positively correlated, indicating that there exists price competition between China and these countries. With China's export price going down, export prices of these countries also decline. Further investigation also suggests that the magnitude of this competition depends on the destination markets and the source countries of export. Compared to the US and EU, the price competition effect of China's export in Japanese market is more significant; compared to other source countries, the price competition effects of China in East Asia and Pacific Regions are more significant. In addition, we also find that the competition also depends on the share of China's export in destination markets. As China's share goes up, other countries will face more fierce price competition in the same destination market.

Key words： China's Export    Price Effect    Destination Markets    Source Countries of Export

source:Finance & Trade Economics ,No.8,2015