The effects of oil shocks on export duration of China

Abstract

This paper investigates the effects of oil shocks on export duration of China using the firm-level dataset of Chinese industrial enterprises over the period 1999–2009. The results show that oil supply shocks and other oil-specific shocks have significantly negative impacts on China’s export duration, while aggregate demand shocks have a significantly positive impact on China’s export duration in the full sample. The sub-samples analysis shows that the adverse effects of oil supply shocks and aggregate demand shocks on export duration are smaller in energy intensive industries (EII) than in non-energy intensive industries (NEII). All the three oil price shocks have lower adverse effects on China’s export duration in the processing firms (PF) than in non-processing firms (NPF).