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What has China learned from processing trade?

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  • Bawoo Kim

    (Korea Institute for Industrial Economics and Trade)

Abstract

Processing trade in China has been prevalent, despite rapid economic growth and consequent structural changes. This study examines the role of the processing trade, especially as it relates to exports productivity and export variety. Our model predicts that high productivity of processing exports, which can be characterized by leverage and coverage, may enhance the productivity of the sector. An empirical analysis gives firm support to the model. It also shows a learning effect of processing exports to the productivity of ordinary exports.

Suggested Citation

  • Bawoo Kim, 2017. "What has China learned from processing trade?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-14, December.
    • Handle: RePEc:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0088-5
    DOI: 10.1186/s40008-017-0088-5
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    References listed on IDEAS

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    Cited by:

    1. López, Luis Antonio & Arce, Guadalupe & Jiang, Xuemei, 2020. "Mapping China's flows of emissions in the world's carbon footprint: A network approach of production layers," Energy Economics, Elsevier, vol. 87(C).

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