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Paper 103 – China and the Least Developed Countries: An Enquiry into the Trade Relationship during the Post-WTO Accession Period

Contributor: Debapriya Bhattacharya and Farzana Misha

Publication Period: August 2013

In the post-WTO accession decade, China’s trade relationship with the least developed countries (LDCs) has undergone significant transformation. In this context, the present paper seeks to analyse trends, nature and determinants of the evolving trade relationship between China and the LDCs. The paper, based on a cross-section analysis, further intends to develop an understanding of this relationship in terms of its changing regional attributes and product composition.

The analysis reveals that trade regime between China and the LDCs is characterised by high product concentration, regional orientation and positive trade balance in favour of China. As a part of the effort to explain the China-LDC trade performance, a basic gravity model has been used in the paper which shows that China’s entry into the WTO had both direct and indirect impact in promoting trade with the LDCs.

 

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