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A global view of productivity growth in China

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  • Hsieh, Chang-Tai
  • Ossa, Ralph

Abstract

How does a country's productivity growth affect worldwide real incomes through international trade? In this paper, we take this classic question to the data by measuring the spillover effects of China's productivity growth. Using a quantitative trade model, we first estimate China's productivity growth between 1995 and 2007 and then isolate what would have happened to real incomes around the world if only China's productivity had changed. We find that the spillover effects are small for all countries in our sample, ranging from a cumulative real income loss of at most −0.2% to a cumulative real income gain of at most 0.2%.

Suggested Citation

  • Hsieh, Chang-Tai & Ossa, Ralph, 2016. "A global view of productivity growth in China," Journal of International Economics, Elsevier, vol. 102(C), pages 209-224.
    • Handle: RePEc:eee:inecon:v:102:y:2016:i:c:p:209-224
    DOI: 10.1016/j.jinteco.2016.07.007
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    More about this item

    Keywords

    Spillovers; Productivity growth; China;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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