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Puzzle of Home Bias About Trade: China Paradox and Empirical Analysis
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TitlePuzzle of Home Bias About Trade: China Paradox and Empirical Analysis  
AuthorZhang Shaojun  
OrganizationXIAMEN University 
Email54foxzhang@163.com 
Key WordsHome Bias; Adjacent Bias; Gravity Model; Provincial Input-Output Table 
AbstractMainly in the input-output table of China's five years and 30 provinces, this paper first builds a sub-provinces and sub-industries database including intra-provincial trade, inter-provincial trade and international trade,etc.Based on gravity model,this paper hereafter adopts this database to test trade bias of China comprehensively and systematically. This paper finds that China's trade does not hold home bias at the national level and does not also hold home bias and adjacent bias at the province level from the perspective of the total trade; and from the perspective of export and import; by the control of the individual effects of time, province and sector,as well as from the perspective of three grouped dimensions that is before and after joining the WTO, coastal and inland, intermediate goods and final goods. To this end, China should make efforts to develop intra-provincial trade and inter-provincial trade, promote the rebalancing between remote bias and home bias,adjacent bias.This is only way to help the China economy achieve rebalancing. 
Serial NumberWP436 
Time2013-04-26 
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