The Emergence of China and the Evolution of International Trade in Brazil
AbstractWe take advantage of a novel dataset that incorporates the technological content of each product and its quality to unveil some features of Brazil-China’s trade flows and challenge the view that the emergence of China would imply the deindustrialization of Brazilian exports. We show that Brazil increasingly exports to China products with lower technological content and increasingly imports products with higher technological content. The quality dimension of the dataset reveals that both countries export to each other basically low-quality goods. We show that from 1994 to 2007 the number of products in which the two countries have comparative advantage declined and that both countries increased their advantage in the products in which they already had advantage in 1994 and lost advantage in the sectors in which they had small advantage in producing by then. Brazilian exports of commodities increased significantly due to the emergence of Asian countries. However, Brazilian exports of high technological content and high quality increased more than the average and more than low technological and low quality exports. Overall, the emergence of China has been supporting a displacement of Brazilian exports not only towards natural-based products but also to goods with higher quality and higher technological content.
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Bibliographic InfoArticle provided by Inter-American Development Bank, INTAL in its journal Integration and Trade / Integración y Comercio.
Volume (Year): 35 (2012)
Issue (Month): 16 ()
COMERCIO INTERNACIONAL; EXPORTACIONES; COMMODITIES; MERCADO DE PRODUCTOS MANUFACTURADOS; INNOVACIONES TECNOLOGICAS; DESARROLLO INDUSTRIAL; SECTOR INDUSTRIAL; CRECIMIENTO ECONOMICO;
Other versions of this item:
- Dos Santos, Enestor & Zignago, Soledad, 2012. "El avance de China y la evolución del comercio internacional en Brasil," Revista Integración y Comercio (Integration and Trade Journal), Inter-American Development Bank, INTAL, vol. 35(16), pages 87-107.
- Enestor Dos Santos & Soledad Zignago, 2010. "The impact of the emergence of China on Brazilian international trade," Working Papers 1022, BBVA Bank, Economic Research Department.
- F1 - International Economics - - Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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