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

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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