QU Ru-xiao School of Economics and Business Administration of Beijing Normal University 2011.7.1

1. QU Ru-xiao School of Economics and Business Administration of Beijing Normal University 2011.7.1 The Factors on Trade of Chinese Cultural Goods——An Empirical Analysis based on Panel Data

2. Main Point INTRODUCTION LITERATURE REVIEW DEFINITION STATUS QUO RESEARCH DESIGN ANALYSIS OF EMPIRICAL RESULTS CONCLUSION

3. 1. INTRODUCTION----background The international trade flows of cultural products grew fast in the last ten years, which has been the new source of the world economy, and the liberation of cultural trade has been an important issue in the future's multilateral trade negotiations. The development of cultural trade and the expansion of export will raise the international influence of China, and bring us huge economic and social benefits. Making clear the development of Chinese cultural trade and the factors determining its direction and scale are of great practical significance both for the way developing cultural trade and for the trend of international cultural trade.

4. 2. LITERATURE REVIEW • Lots of scholars in all fields tested the cultural factors' influence on international trade in different angles, such as the common language, the same religious beliefs, colonial affiliation, institution distance, cultural distance, and so on. Results are different. The Chinese studies on cultural trade basically analyze the state of current cultural trade from the perspective of economics, while literatures about empirical analysis is relatively small. In this article, an empirical analysis will be done to figure out the factors of trade of Chinese cultural products by use of gravity model. • .

5. 3. DEFINITION From: UNESCO Cultural goods → Consumer goods spreading ideas, symbols and lifestyle, when providing information and entertainment to form group identify and influence cultural behavior. In 2005, UNESCO divided cultural goods, and told core cultural goods (books, recorded media, visual arts, etc.) apart from related cultural goods (blank CDs, TV, etc.) by its content.

6. The core cultural goods and related goods under classification of UNESCO

7. 4. STATUS QUO THE FEATURES OF CHINESE CULTURE TRADE • Centralized export market • Faster export growth • Small exports proportion • Serious structural deficit

8. Figure 1 China's main trading partners of cultural goods exportData Source: UN COMTRADE Database 4.1 Centralized export market

9. 4.2 Faster export growth Figure 2 Trends of Chinese Culture exports 1992-2009 Data Source: UN COMTRADE Database

10. 4.3 Small exports proportion Table 2 The share of Chinese culture exports in total exports 2002-2008 Data Source: UN COMTRADE Database

11. 4.4 Serious structural deficit

12. 5. RESEARCH DESIGN • Variables selection • Data sources Construction of the regression equation

13. 5.1 Variables selection 5.1.1 Dependent variable Chinese exports of cultural products over the years (Ex) 5.1.2 Independent variables Gross domestic product (GDP) • GDP per capita • Geographical distance • Cultural distance • Land area • Terms of trade • Internet user 5.1.3 Dummy variables Common language FTA

14. 5.2 Data sources

15. 5.3 Construction of the regression equation 5.3.1 Classical gravity model • Tij=A·[(Yi ，Yj)/Dij] • ln Tij= a0 + a1lnGDPi + a2lnGDPj + a3lnDij+ εij

16. 5.3.2 Construction of the regression equation • Ln（Excjt）=α+β1Ln(GDPct) +β2Ln(GDPjt) +β3Ln(GDPPCct) +β4Ln(GDPPCjt) +β5 Ln(Dcj) +β6Ln(culDcj) +β7Ln(AREAj) +β8Ln(TERMjt) +β9INTjt +β10 CLANcj +β11 CFTAcj + μcjt

17. 6. ANALYSIS OF EMPIRICAL RESULTS

18. 7. CONCLUSION In addition to traditional conclusions that trading partner's economic scale, purchasing power of residents, land area and the common language have positive effects on cultural products trade, while geographic distance and terms of trade impact culture trade flows negatively, China's cultural products trade also has Chinese characteristics: the cultural distance with trade partners has a positive impact on the country's exports of cultural goods, which may be due to the unique nature of cultural goods in China to be more attractive to importing countries with a large cultural gap between China; partners' levels of technology application have positive effects on trade flows of cultural goods in China, because the spread of culture are related to development of new media as its carrier; China's economic scale, purchasing power of residents, and whether to enjoy the trade preferences have little effect on exports of cultural goods in the regression model

19. That’s all. Thank you!