US-CHINA TRADE PATTERNS AND DETERMINANTS: NATION, STATES, AND KANSAS FOCUS

Bienvenido S. Cortes
Pittsburg State University
ABSTRACT
This study evaluates the importance of China as a destination country for U.S. exports,
examines trends and product diversity in U.S. national and state-level exports to China, and
identifies the factors (local and external) which determine the variations in a specific state’s
(Kansas) exports to China. The study applies random effects panel regression on pooled data for
28 sectors in Kansas for the period 2000-2010. It was found that China per capita GDP positively
affects Kansas exports, reflecting China’s importance to Kansas. The significant location quotient
indicates that Kansas exports are concentrated and that there may be a need for a more
diversified economic base. Finally, the Kansas sectors of food processing, agriculture,
transportation equipment, and leather products continue to be successful in the international
markets.