Abstract
Little is known about the interaction between domestic and international trade because of the paucity of data on domestic trade. The opening of international trade may change, for example, the extent of domestic market integration as more domestic goods are moved to ports that serve foreign markets. In addition, domestic infrastructure and market networks can also be expected to adapt as a greater volume of foreign goods are imported and subsequently distributed to different domestic market locations. Furthermore, as new goods are introduced by domestic producers to the foreign market, these Chinese-produced goods (what are commonly termed ‘native goods’) may occupy new and separate trading networks.1
We thank Timur Kuran, Debin Ma, as well as the participants and the audience at our session of the IEA World Congress in Bei**g (July 2011) for useful comments on an earlier version of this paper. Part of this research was done while Keller and Shiue were visiting the Economics department at Princeton, whose hospitality they gratefully acknowledge; they also benefited from NSF support (grants SES 0453040 and 1124426). Excellent research assistance was provided by Xavier Gitiaux.
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Keller, W., Li, B., Shiue, C.H. (2012). The Evolution of Domestic Trade Flows When Foreign Trade Is Liberalized: Evidence from the Chinese Maritime Customs Service. In: Aoki, M., Kuran, T., Roland, G. (eds) Institutions and Comparative Economic Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137034014_9
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