Export Sophistication and Economic Performance: Evidence from Chinese Provinces
Abstract
We consider the effect of export sophistication on economic performance using regional variations within a single country (China) over the period 1997-2007. We confirm Hausmann, Hwang and Rodrik (2007)’s prediction that regions that engage in the cost discovery process of developing sophisticated goods grasp greater gains from globalization and grow faster. We find that these gains are limited to to export activities undertaken by domestic entities. Direct gains do not appear to derive from foreign entities typically engaged in processing trade even though they are the main contributors to the global upgrading of China’s exports. Our findings globally suggest that the expected gains from exporting higher productivity goods are not unconditional, they are greater for provinces already blessed by high incomes, better market centrality and higher trade performance and Foreign Direct Investment attractiveness. These features consistent with evidence of increasing returns to sophistication are unfortunately likely to contribute further to the current widening of spatial economic disparities across China.Download Info
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Paper provided by CEPII research center in its series Working Papers with number 2009-34.Length:
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:cii:cepidt:2009-34
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Keywords: EXPORT SOPHISTICATION; ECONOMIC GROWTH; OUTWARD ORIENTATION; CHINA;Find related papers by JEL classification:
- F1 - International Economics - - Trade
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
- NEP-INT-2010-01-23 (International Trade)
- NEP-TRA-2010-01-23 (Transition Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Florian MAYNERIS & Sandra PONCET, 2011.
"Export performance of Chinese domestic firms: the role of foreign export spillovers,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2011003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- MAYNERIS, Florian & PONCET, Sandra, 2011. "Export performance of Chinese domestic firms: the role of foreign export spillovers," CORE Discussion Papers 2011008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Florian Mayneris & Sandra Poncet, 2010. "Export Performance of China's Domestic Firms: the Role of Foreign Export Spillovers," Working Papers 2010-32, CEPII research center.
- Lee, Jim, 2011. "Export specialization and economic growth around the world," Economic Systems, Elsevier, vol. 35(1), pages 45-63, March.
- Françoise Lemoine, 2010. "Past Successes and New Challenges: China's Foreign Trade at a Turning Point," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(3), pages 1-23.
- Marco Alderighi & Alberto Gaggero, 2012. "Accessibilità aerea e capacità esportativa del manifatturiero italiano," Quaderni di Dipartimento 163, University of Pavia, Department of Economics and Quantitative Methods.
- Jacek Rothert & Amanda Michaud, 2011. "Optimal Borrowing Constraints and Growth in a Small Open Economy," Department of Economics Working Papers 130225, The University of Texas at Austin, Department of Economics, revised Feb 2013.
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