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What's So Special about China's Exports?

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  • Rodrik, Dani

    (Harvard U)

Abstract

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 Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp06-001.

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Date of creation: Jan 2006
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Handle: RePEc:ecl:harjfk:rwp06-001

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  1. Ricardo Hausmann & Dani Rodrik, 2002. "Economic Development as Self-Discovery," NBER Working Papers 8952, National Bureau of Economic Research, Inc.
  2. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005. "What You Export Matters," NBER Working Papers 11905, National Bureau of Economic Research, Inc.
  3. Eswar Prasad, 2004. "China's Growth and Integration into the World Economy," IMF Occasional Papers 232, International Monetary Fund.
  4. Dic Lo & Thomas M. H. Chan, 1998. "Machinery and China's nexus of foreign trade and economic growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(6), pages 733-749.
  5. Jorg Mayer & Adrian Wood, 2001. "South Asia's Export Structure in a Comparative Perspective," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 29(1), pages 5-29.
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