ABSTRACT

This chapter utilizes data at Standard Industrial Trade Classification 1-digit level to identify the industrial heterogeneous effect of China’s trade on ASEAN’s trade. But country-level trade data are from the global database, a subset of the CEIC database. The chapter calculates the revealed comparative advantage indexes and the export value-added ratios of ASEAN countries. China competes with ASEAN countries on the world market. Therefore, an increase of China’s export to the rest of the world would crowd out ASEAN countries’ export. The trade liberalization and internal improvement would help ASEAN countries improve their labor productivity. The chapter introduces the data sets used in empirical analysis and describes the measures of key variables, presents the empirical evidence for the impact of China’s trade on ASEAN’s trade, and provides some robust checks. The bilateral trade between China and ASEAN increases dramatically, especially after the launch of the ASEAN-China’s FTA in 2010.