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The Anatomy of China's Export Growth

In: China's Growing Role in World Trade

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  • Mary Amiti
  • Caroline Freund

Abstract

Decomposing China's real export growth, of over 500 percent since 1992,reveals a number of interesting findings. First, China's export structure changed dramatically, with growing export shares in electronics and machinery and a decline in agriculture and apparel. Second, despite the shift into these more sophisticated products, the skill content of China's manufacturing exports remained unchanged, once processing trade is excluded. Third, export growth was accompanied by increasing specialization and was mainly accounted for by high export growth of existing products (the intensive margin) rather than in new varieties (the extensive margin). Fourth, consistent with an increased world supply of existing varieties, China's export prices to the United States fell by an average of 1.5 percent per year between 1997 and 2005, while export prices of these products from the rest of the world to the United States increased by 0.4 percent annually over the same period.

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This chapter was published in:

  • Robert C. Feenstra & Shang-Jin Wei, 2010. "China's Growing Role in World Trade," NBER Books, National Bureau of Economic Research, Inc, number feen07-1, Ekim.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10451.

    Handle: RePEc:nbr:nberch:10451

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    1. Christian Broda & David Weinstein, 2004. "Globalization and the gains from variety," Staff Reports 180, Federal Reserve Bank of New York.
    2. Ralf Ruhwedel & Michael Funke, 2001. "Product Variety and Economic Growth Empirical Evidence for the OECD Countries," Quantitative Macroeconomics Working Papers, Hamburg University, Department of Economics 20104, Hamburg University, Department of Economics.
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    11. Costas Arkolakis, 2007. "Market Access Costs and the New Consumers Margin in International Trade," 2007 Meeting Papers, Society for Economic Dynamics 234, Society for Economic Dynamics.
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