ABSTRACT

This chapter discusses the influence of China's exports on ASEAN countries' exports using econometric analysis. It introduces the data sets used in the empirical analysis and describes the measures of key variables. The chapter presents the empirical evidence for the impact of China's trade on Association of Southeast Asian Nations' (ASEAN) trade. It provides some robustness checks and makes most use of data at the Standard International Trade Classification (SITC) one-digit level to identify the industrial heterogeneous effect of China's trade on ASEAN's trade. However, country-level trade data are from the global database, a subset of the CEIC database. All trade data are at the SITC two-digit level. The chapter explains the influence of China's exports to ASEAN and to the rest of the world on ASEAN countries' exports, the value added of exports, and revealed comparative advantage. It also focuses on export value added ratios of China and ASEAN countries.