Further Tests of Ahn, Khandelwal, and Wei’s (2011) Model of Intermediated Trade

Type of content
Discussion / Working Papers
Publisher's DOI/URI
Thesis discipline
Degree name
Publisher
University of Canterbury, Department of Economics and Finance
Journal Title
Journal ISSN
Volume Title
Language
Date
2019
Authors
Duan J
Qian X
Das K
Meriluoto L
Reed WR
Abstract

This study subjects Ahn, Khandelwal, and Wei’s (2011) model of intermediary trade to a series of additional tests. Using data mostly sourced independently from AKW, we demonstrate that we are able to reproduce the evidence supporting their three main predictions for Chinese exports. However, further tests reveal that these results are not robust. When we repeat the analysis underlying their first prediction with more recently available data, we estimate coefficients that are wrong-signed and significant. When we re-analyze the evidence supporting their second and third predictions, we find that the full sample results mask significant heterogeneity across Chinese regions. In many cases, key coefficients are insignificant. In a few cases, they are wrong-signed and significant. Finally, we find that there are multiple versions of a key variables measuring the number of required import documents by country, and that results are not robust across versions.

Description
Citation
Duan J, Qian X, Das K, Meriluoto L, Reed WR (2019). Further Tests of Ahn, Khandelwal, and Wei’s (2011) Model of Intermediated Trade. University of Canterbury, Department of Economics and Finance. University of Canterbury, Department of Economics and Finance.
Keywords
Intermediaries, exports, productivity, heterogeneous firms, China
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Fields of Research::35 - Commerce, management, tourism and services::3507 - Strategy, management and organisational behaviour::350706 - International business
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