Geographic Concentration and China's Agricultural Export Instability

Abstract

This paper investigates the impacts of geographic concentration on China's agricultural export instability with a multiple‐region variance decomposition approach. The decomposition results suggest that China's agricultural export concentration into the Japanese market greatly lowers agricultural export instability, while concentration into the Hong Kong, South Korea, ASEAN, the US, and Russian Federation markets increases export instability. China's exports to the EU also lower its agricultural export instability. Further decomposition results indicate that the impacts of geographic concentration on different agricultural product export instabilities are different.

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