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Title: A Case Study of China’s Decomposition in the Trading of Information and Communication Technology Products
Abstract: It is widely acknowledged that technology plays a crucial role in the growth of the global economy, especially when it comes to the trade of information and communications technology (ICT) products. Since 2000, the decomposition of export growth has become a popular method for examining the influences on trade. Although China is the de facto largest exporter and importer of ICT goods, little is known about the organization of its ICT product trading. With a non-parametric model, this paper adds to the already existing methodologies. The coefficient calculates which factors’ functions correspond to a dynamic analysis of the influences on the decomposed growth of trade. The empirical study demonstrates that China’s strategy tends to be conservative, as the growth in trade with developed countries was primarily driven by an increase in the volume of already-existing trade lines rather than a rise in trade varieties. There have been suggestions that the trade expansion could profit from resource reallocation in the ICT sectors and the streamlining of exporting ICT products’ processes. This study also offers empirical proof that the Belt and Road Initiative (BRI), by completing the transportation chain and lowering variable trade costs, increased trading volume and frequency. Additionally, recommendations are made to enhance the impact of ICT on globalization.
Keywords: ICT products; trade growth; the intensive and extensive margins; strategy; policy
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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