Much more than comparative advantage and free markets have been at play in shaping China's export success. Government policies have helped nurture domestic capabilities in consumer electronics and other advanced areas that would most likely not have developed in their absence. As a result, China has ended up with an export basket that is significantly more sophisticated than what would be normally expected for a country at its income level. This has been an important determinant of China's rapid growth. What matters for China's future growth is not the volume of exports, but whether China will continue to latch on to higher-income products over time.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
5484.
Find related papers by JEL classification: F1 - International Economics - - Trade O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2006.
"What You Export Matters,"
CEPR Discussion Papers
5444, C.E.P.R. Discussion Papers.
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Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005.
"What You Export Matters,"
NBER Working Papers
11905, National Bureau of Economic Research, Inc.
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