FSS ECON Seminar – “Provincial Administrative Borders, Trade, and Economic Growth” by Prof. Tongtong HAO, 8 Nov (Wed, 14:00-15:15)

社會科學學院經濟學系講座："Provincial Administrative Borders, Trade, and Economic Growth"，郝彤彤教授，11月8日 (星期三，14:00-15:15)

Seminar on Economics:

“Provincial Administrative Borders, Trade, and Economic Growth”

 

Speaker: Prof. Tongtong HAO

Assistant Professor

Lingnan College, Sun Yat-sen University, China

 

Abstract: How are trade barriers distributed across cities within and between provinces in China? This paper utilizes city-level VAT invoice (fapiao) transaction data and employs a spatial general equilibrium model to analyze city-to-city trade barriers in China. Our findings reveal a significant provincial border effect among cities. City trade costs between provinces are 40% higher than those within provinces, highlighting the presence of substantial administrative boundaries. A counterfactual analysis suggests that reducing trade costs can result in a 29% increase in GDP. Notably, the reduction in trade barriers between provinces accounts for three-quarters of this increase, while trade barriers within provinces contribute one-quarter. When provincial borders are eliminated, GDP could increase by 73%.

 

Date: 8 Nov 2023 (Wed)

Time: 14:00-15:15

Language: English

Venue: E21B-G002

 

All are welcome!

 

Department of Economics
Faculty of Social Sciences
University of Macau