On the Sources of China’s Export Growth
AbstractWe use detailed data on Chilean imports between 1990 and 2005 to analyze the causes of China’s import penetration relative to other countries. China exports a wide variety of products. The growth in China’s exports, however, is mainly driven by an increase in import penetration within common product categories with the rest of the world—the intensive margin—rather than by an increase in the number of product varieties exported—the extensive margin. Surprisingly, the growth in the intensive margin is explained by an increase in exported quantities without a significant fall in the relative price of Chinese varieties. This apparent paradox suggests that an increase in either the number of unobserved varieties or the willingness to pay for Chinese products—an increase in the relative quality of Chinese products—is the driving force behind China’s export performance. We present evidence regarding China’s export prices, the similarity of China’s export bundle to that of developed countries, and the relative quality of Chinese products, to conclude that improvements in the quality of Chinese products is an important dimension of Chinese export growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 426.
Date of creation: Aug 2007
Date of revision:
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.:
- Rauch, James E., 1999.
"Networks versus markets in international trade,"
Journal of International Economics,
Elsevier, vol. 48(1), pages 7-35, June.
- James Harrigan, 1996.
"Technology, Factor Supplies and International Specialization: Estimating the Neoclassical Model,"
NBER Working Papers
5722, National Bureau of Economic Research, Inc.
- Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September.
- James Harrigan, 1996. "Technology, factor supplies, and international specialization: estimating the neoclassical model," Staff Reports 15, Federal Reserve Bank of New York.
- Juan Carlos Hallak & Peter K. Schott, 2011.
"Estimating Cross-Country Differences in Product Quality,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 417-474.
- Juan Carlos Hallak & Peter K. Schott, 2008. "Estimating Cross-Country Differences in Product Quality," NBER Working Papers 13807, National Bureau of Economic Research, Inc.
- Peter K. Schott, 2006.
"The Relative Sophistication of Chinese Exports,"
NBER Working Papers
12173, National Bureau of Economic Research, Inc.
- Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2004. "The Impact of China on the Exports of Other Asian Countries," NBER Working Papers 10768, National Bureau of Economic Research, Inc.
- Leamer, Edward E, 1987. "Paths of Development in the Three-Factor, n-Good General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 961-99, October.
- David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.