Export upgrading and growth: the prerequisite of domestic embeddedness
AbstractOur work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available for domestic firms operating in ordinary trade is an important driver of economic growth. However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign firms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is the key for capacity building and technology adoption to be growth enhancing.
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Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2012-26.
Date of creation: Oct 2012
Date of revision:
Economic complexity; export upgrading; FDI; processing trade; growth; China;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-11 (All new papers)
- NEP-FDG-2012-11-11 (Financial Development & Growth)
- NEP-INT-2012-11-11 (International Trade)
- NEP-TRA-2012-11-11 (Transition Economics)
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