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Machinery and China's nexus of foreign trade and economic growth

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Author Info

  • Dic Lo

    (Department of Economics, SOAS, University of London, UK)

  • Thomas M. H. Chan

    (China Business Centre, Hong Kong Polytechnic University, Hung Hom, Hong Kong)

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    Abstract

    This paper offers an interpretation of China's nexus of foreign trade and economic growth that centres around technological development. Evidence, mainly related to the performance of the machinery sector, is presented indicating that the phenomenal export expansion is not reducible to a market-centred trade regime, and that the standard thesis of export-led growth would not apply-the contribution of trade to growth realises rather through imports. With an emphasis on the central importance of the production side, we present further evidence to substantiate the argument that the relatively successful aspects of the trade-growth nexus have been largely underpinned by a mix of the market mechanism and various non-market institutions. © 1998 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 10 (1998)
    Issue (Month): 6 ()
    Pages: 733-749

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    Handle: RePEc:wly:jintdv:v:10:y:1998:i:6:p:733-749

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    Cited by:
    1. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19.
    2. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    3. Dic Lo, 2004. "China'S Nexus Of Foreign Trade And Economic Growth: Making Sense Of The Anomaly," Working Papers 143, Department of Economics, SOAS, University of London, UK.
    4. Dic Lo, 2004. "Assessing the Role of Foreign Direct Investment in China’s Economic Development: Macro Indicators and Insights from Sectoral-Regional Analyses," Working Papers 135, Department of Economics, SOAS, University of London, UK.
    5. Badibanga, Thaddee Mutumba & Diao, Xinshen & Roe, Terry L. & Somwaru, Agapi, 2008. "Dynamics of Structural Transformation: Understanding the Key Factors That Drive Innovative Activities in Selected Asian and African Countries," Bulletins 43890, University of Minnesota, Economic Development Center.
    6. Ana Luísa Coutinho & Maria Paula Fontoura, 2012. "What determines the export performance? A comparative analysis of China and India in the European Union," Working Papers Department of Economics 2012/35, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    7. Dic Lo, 2003. "China, the ‘East Asian Model’ and Late Development," Working Papers 131, Department of Economics, SOAS, University of London, UK.

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