Chinese Exports To The U.s. Elasticity Analysis

Since the outbreak of the 2008 global financial crisis,the volume of international trade has fallen sharply,and China's export has also experienced a significant decline. Under an unprecedented shock,Export has put tremendous pressure on the Chinese economy.Well,why China's exports dropped so much? What factors resulted in this? To what extent,these factors impact on the exports? what is the nature of these factors? what kind of contact exist between them?Based on these issues,this paper dealt with the Chinese export to the United States.After briefly review of the history of Sino-US trade,this paper set a model of export demand,according to the assumption of imperfect-substitute based on Keynesian theory,and then added new variables to the basic model,with comparison.After using OLS Methods to estimate the parameters of the model,this article tried to find the long-run equilibrium relationship,by using the method of cointegration from the perspective of time series.The results showed the signl and significance of the estimated value of the parameters are similar in results of two methods studied in this paper.Empirical results show that,the income elasticity of exports is positive and significant,and the export price elasticity is not significant,and openness elasticity of exports is positive,so do FDI.The export tax rebate rate had no significant impact on China's exports to the United States in the long run.The transformation of China's trade strategy in 1992 had a positive role in promoting China's exports to the United States,so do China's accession to the WTO.Based on the analysis and discussion of the results of empirical testing,It is found that the income elasticity of exports will become smaller after adding the open index of the marke.Export price elasticity is not a significant in company with FDI, Further research also found that FDI flows seem to represent not only changes in the size of foreign-funded enterprises,but also exchange rate fluctuations between countries with similar elements,which make FDI more significant in the study of export price elasticity.In the conclusion,this article summarized the empirical findings of the study, and present policy recommendations in accordance with the results of research on China's exports to the United States,in the hope that this research can be an effective theory of reference,in the field of the Chinese exports.