Impacts of China’s Image on Export

Abstract

This study examines the perception of China’s image by trade partners using the big data tool, the GDELT project. In addition, this study extends the standard trade gravity model to estimate the influence of China’s image on its export using the Panel ARDL method. The GDELT’s sentiment index, which measures China’s image, shows that the vast majority of China’s trading partners had a positive view of China from 2001 to 2014. However, the trend has been declining since 2010 and the sentiment indexturnednegativesince2015.Nevertheless, thelong-run trendofChina’s exporthas grown significantly,mainly due to the GDPgrowth of both China and its trade partners. Besides, in the short run, China's image for Hong Kong, Singapore, and Bangladesh has a significant impact on exports.And only exports of intermediate products are affected by China's image in the short run.