Article
China’s exports in a world of increasing oil prices
Abstract
Purpose – This paper aims to examine the impact of oil prices on trade’s sensitivity to distance. Furthermore, it seeks to investigate if the nature of trade and the type of goods have a mediating role
on the oil prices’ impact on trade. Design/methodology/approach – A set of gravity models are estimated on a unique panel dataset from China Customs Statistics that reports trade by customs regime (processing trade vs non-processing trade) and by transportation mode (air vs sea) for the years 1988-2008.