An Empirical Analysis of China's Wood Pulp and Recovered Paper Imports Using an Augmented Gravity Model Approach

Abstract

Abstract Production and consumption trends of China's pulp and paper products are discussed as well as imports of two principal raw materials: wood pulp and recovered paper. We developed an augmented gravity model to understand trade behavior between China and its trading partners using panel data from 1995 to 2012. The results show that China's economic growth is an important driver for wood pulp and recovered paper imports. Exporters' economic size has positive impacts on wood pulp exports and is also a significant factor in determining recovered paper exports. Distance has a significant negative impact on China's wood pulp and recovered paper imports. Finally, China's accession to the World Trade Organization increased both its wood pulp and recovered paper imports.

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