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Export sophistication and economic growth: Evidence from China

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  • Jarreau, Joachim
  • Poncet, Sandra

Abstract

We consider the effect of export sophistication on economic performance by appealing to regional variation within one single country (China) over the 1997–2009 period. We find evidence in support of Hausmann, Hwang and Rodrik (2007), in that regions specializing in more sophisticated goods subsequently grow faster. We find substantial variation in export sophistication at the province and prefecture level, controlling for the level of development, and that this sophistication in turn drives growth. Our results suggest that these gains are limited to the ordinary export activities undertaken by domestic firms: no direct gains result from either processing trade activities or foreign firms, even though these are the main contributors to the global upgrading of China's exports. As such, the extent of assembly trade and foreign entities should be distinguished in order to measure the true movement in a country's technology and the contribution of exports to economic growth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 97 (2012)
Issue (Month): 2 ()
Pages: 281-292

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Handle: RePEc:eee:deveco:v:97:y:2012:i:2:p:281-292

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Export sophistication; Economic growth; Processing trade; China;

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References

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Citations

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Cited by:
  1. Sandra PONCET & Felipe STAROSTA DE WALDEMAR, 2012. "Product relatedness and firm exports in China," Working Papers P58, FERDI.
  2. THORBECKE, Willem & Hao-Kai PAI, 2013. "The Sophistication of East Asian Exports," Discussion papers 13092, Research Institute of Economy, Trade and Industry (RIETI).
  3. Lansana Bangoura & Diadié Diaw & Karim Barkat, 2013. "Does North-South trade favors training effects : What to learn from trade sophistication links?," Economics Bulletin, AccessEcon, vol. 33(4), pages 2763-2777.
  4. Gnidchenko, Andrey A., 2012. "Новый Метод Оценки Структуры И Базы Экспортного Потенциала
    [The new method for estimating the structure and the basis of export potential]
    ," MPRA Paper 43691, University Library of Munich, Germany.
  5. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
  6. repec:hal:cesptp:halshs-00960684 is not listed on IDEAS
  7. Mayneris, Florian & Poncet, Sandra, 2013. "Chinese firms'entry to export markets : the role of foreign export spillovers," Policy Research Working Paper Series 6398, The World Bank.
  8. Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," PSE - G-MOND WORKING PAPERS halshs-00960684, HAL.
  9. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
  10. Françoise Lemoine & Deniz Ünal, 2012. "Scanning the Ups and Downs of China’s Trade Imbalances," Working Papers 2012-14, CEPII research center.
  11. Fernandes, Ana M. & Paunov, Caroline, 2012. "The risks of innovation : are innovating firms less likely to die ?," Policy Research Working Paper Series 6103, The World Bank.

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