Export upgrading and growth: the prerequisite of domestic embeddedness
Abstract
Our 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.Download Info
If 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 Info
Paper provided by CEPII research center in its series Working Papers with number 2012-26.Length:
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:cii:cepidt:2012-26
Contact details of provider:
Postal: 113, rue de Grenelle, 75700 Paris SP07
Phone: 33 01 53 68 55 00
Fax: 33 01 53 68 55 01
Web page: http://www.cepii.fr
More information through EDIRC
Related research
Keywords: 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)
References
References listed on IDEASPlease 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.:
- Lemoine, Francoise & Unal-Kesenci, Deniz, 2004. "Assembly Trade and Technology Transfer: The Case of China," World Development, Elsevier, vol. 32(5), pages 829-850, May.
- Torfinn Harding & Beata Javorcik, 2011. "FDI and Export Upgrading," Economics Series Working Papers 526, University of Oxford, Department of Economics.
- Iacovone, Leonardo & Javorcik, Beata S., 2008. "Multi-product exporters : diversification and micro-level dynamics," Policy Research Working Paper Series 4723, The World Bank.
- Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
- Olivier CADOT & C�line CARRERE & Vanessa STRAUSS-KHAN, 2007.
"Export Diversification:What's behind the Hump?,"
Working Papers
200724, CERDI.
- Cadot, Olivier & Carrère, Céline & Strauss-Kahn, Vanessa, 2007. "Export Diversification: What’s behind the Hump?," CEPR Discussion Papers 6590, C.E.P.R. Discussion Papers.
- Olivier CADOT & C�line CARRERE & Vanessa STRAUSS-KHAN, 2009. "Export Diversification: What's behind the Hump?," Working Papers 200934, CERDI.
- Crespo, Nuno & Fontoura, Maria Paula, 2007.
"Determinant Factors of FDI Spillovers - What Do We Really Know?,"
World Development,
Elsevier, vol. 35(3), pages 410-425, March.
- Nuno Crespo & Maria Paula Fontoura, 2005. "Determinant Factors of FDI Spillovers – What Do We Really Know?," Working Papers 2005/06, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
- Robert J. Barro, 1991.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May.
- Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
- Shunli Yao, 2009. "Why Are Chinese Exports Not So Special?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(1), pages 47-65.
- Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
- Guillaume Gaulier & Soledad Zignago, 2010.
"BACI: International Trade Database at the Product-Level. The 1994-2007 Version,"
Working Papers
2010-23, CEPII research center.
- Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
- Galina Hale & Cheryl Long, 2011.
"Are There Productivity Spillovers From Foreign Direct Investment In China?,"
Pacific Economic Review,
Wiley Blackwell, vol. 16(2), pages 135-153, 05.
- Galina Hale & Cheryl Long, 2007. "Are there productivity spillovers from foreign direct investment in China?," Working Paper Series 2006-13, Federal Reserve Bank of San Francisco.
- Beata Javorcik & Jens Matthias Arnold, 2009.
"Gifted Kids or Pushy Parents? Foreign Direct Investment and Plant Productivity in Indonesia,"
Economics Series Working Papers
434, University of Oxford, Department of Economics.
- Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
- David N. Weil, 1996.
"Appropriate Technology and Growth,"
Working Papers
96-24, Brown University, Department of Economics.
- Susanto Basu & David N. Weil, 1998. "Appropriate Technology And Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1025-1054, November.
- Susanto Basu & David N. Weil, 1996. "Appropriate Technology and Growth," NBER Working Papers 5865, National Bureau of Economic Research, Inc.
- Ricardo Hausmann & Cesar A. Hidalgo, 2011.
"The Network Structure of Economic Output,"
Papers
1101.1707, arXiv.org, revised Feb 2012.
- Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
- David Roodman, 2009.
"A Note on the Theme of Too Many Instruments,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
- David Roodman, 2007. "A Note on the Theme of Too Many Instruments," Working Papers 125, Center for Global Development.
- Cadot, Olivier & Carrère, Céline & Strauss-Kahn, Vanessa, 2010.
"Export Diversification: What's behind the Hump?,"
CEPREMAP Working Papers (Docweb)
1011, CEPREMAP.
- Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2011. "Export Diversification: What's behind the Hump?," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 590-605, May.
- Cadot, Olivier & Carrère, Céline & Strauss-Kahn, Vanessa, 2007. "Export Diversification: What’s behind the Hump?," CEPR Discussion Papers 6590, C.E.P.R. Discussion Papers.
- Felipe, Jesus & Kumar, Utsav & Abdon, Arnelyn & Bacate, Marife, 2012.
"Product complexity and economic development,"
Structural Change and Economic Dynamics,
Elsevier, vol. 23(1), pages 36-68.
- Arnelyn Abdon & Marife Bacate & Jesus Felipe & Utsav Kumar, 2010. "Product Complexity and Economic Development," Economics Working Paper Archive wp_616, Levy Economics Institute, The.
- Xiaolan Fu & Carlo Pietrobelli & Luc Soete, 2010. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching Up," IDB Publications 12078, Inter-American Development Bank.
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
- Jesus Felipe & Utsav Kumar & Norio Usui & Arnelyn Abdon, 2010. "Why Has China Succeeded-And Why It Will Continue To Do So," Economics Working Paper Archive wp_611, Levy Economics Institute, The.
- Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
- Ari Van Assche & Byron Gangnes, 2007.
"Electronics Production Upgrading: Is China Exceptional?,"
CIRANO Working Papers
2007s-16, CIRANO.
- Ari Van Assche & Byron Gangnes, 2010. "Electronics production upgrading: is China exceptional?," Applied Economics Letters, Taylor and Francis Journals, vol. 17(5), pages 477-482.
- Ari Van Assche & Byron Gangnes, 2007. "Electronics Production Upgrading: Is China Exceptional?," Working Papers 200722, University of Hawaii at Manoa, Department of Economics.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:cii:cepidt:2012-26For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

