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Economic Relations between the Czech Republic and China
Vakrman, Tomáš ; Semerák, Vilém (advisor) ; Stakhovych, Lyudmyla (referee)
This paper examines the Czech-Chinese trade relationship, including both bilateral trade and competition on third markets, between years 1999 and 2009. The bilateral trade examined with an emphasis on intra-industry trade, which is measured by two different methods and is found to be rising throughout time by both measures. The intra-industry trade is disentangled into its vertical and horizontal part, where the former one has proved to have larger share in Czech-Chinese trade. It is observed that, the Czech Republic generally exports higher quality goods than it imports, to and from China. In this case, four methods of disentangling of intra-industry trade are used and the most suitable one for Czech-Chinese trade is identified. Moreover, the competition between Czech and Chinese exports on the EU- 15 market is examined. One new method, based on a simple modification of Grubel-Lloyd index, measuring the overlap between the two export flows, is employed. The overlap between Czech and Chinese exports seems to be rising and the structure of their exports has been converging throughout the time observed.

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