Product relatedness and firm exports in China
AbstractWe propose the first evaluation using micro-level data of the expected growth gains from the consistency of activities with local comparative advantage. Using firm level data from Chinese customs over 2000-2006, we investigate the relationship between the export performance of firms and how their products relate to local comparative advantage. Our key indicator measures the density of the links between a product and the local product space. It hence combines information on the intrinsic relatedness of a good with that on the local pattern of specialization. Our results indicate that exports grow faster for goods that have denser links with those currently produced in the firm’s locality. The density of links between products thus seems to yield export-enhancing spillovers. We however also show that this positive effect of product relatedness on export performance is mainly limited to ordinary trade activities and domestic firms. It is also stronger for more productive firms, suggesting that spillover diffusion may be hindered by insufficient absorptive capacity.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by FERDI in its series Working Papers with number P58.
Date of creation: Nov 2012
Date of revision:
Other versions of this item:
- Sandra Poncet & Felipe Starosta de Waldemar, 2012. "Product relatedness and firm exports in China," Working Papers 2012-27, CEPII research center.
- Poncet, Sandra & de Waldemar, Felipe Starosta, 2013. "Product relatedness and firm exports in China," Policy Research Working Paper Series 6676, The World Bank.
- Sandra PONCET & Felipe STAROSTA DE WALDEMAR, 2012. "Product relatedness and firm exports in China," Working Papers P58, FERDI.
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
Please 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.:
- Ricardo Hausmann & Bailey Klinger, 2008.
"South Africa's export predicament ,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(4), pages 609-637, October.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005.
"What You Export Matters,"
Working Paper Series
rwp05-063, Harvard University, John F. Kennedy School of Government.
- Shang-Jin Wei & Jaebin Ahn & Amit K. Khandelwal, 2010.
"The Role of Intermediaries in Facilitating Trade,"
- Guillaume Gaulier & Soledad Zignago, 2010.
"BACI: International Trade Database at the Product-Level. The 1994-2007 Version,"
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.
- Rodrik, Dani, 2006.
"What's So Special about China's Exports?,"
Working Paper Series
rwp06-001, Harvard University, John F. Kennedy School of Government.
- Dani Rodrik, 2006. "What's So Special about China's Exports?," NBER Working Papers 11947, National Bureau of Economic Research, Inc.
- Dani Rodrik, 2006. "What’s So Special about China’s Exports?," Working Papers id:410, eSocialSciences.
- Rodrik, Dani, 2006. "What's So Special About China's Exports?," CEPR Discussion Papers 5484, C.E.P.R. Discussion Papers.
- Deborah L. Swenson, 2007.
"Multinationals and the Creation of Chinese Trade Linkages,"
NBER Working Papers
13271, National Bureau of Economic Research, Inc.
- Deborah L. Swenson, 2008. "Multinationals and the creation of Chinese trade linkages," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 596-618, May.
- Arnaud Costinot & Dave Donaldson & Ivana Komunjer, 2010.
"What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas,"
NBER Working Papers
16262, National Bureau of Economic Research, Inc.
- Arnaud Costinot & Dave Donaldson & Ivana Komunjer, 2012. "What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 581-608.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994.
"Spillovers, Foreign Investment, and Export Behavior,"
NBER Working Papers
4967, National Bureau of Economic Research, Inc.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- KOENIG, Pamina & MAYNERIS, Florian & PONCET, Sandra, .
"Local export spillovers in France,"
CORE Discussion Papers RP
-2225, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010. "Local Export spillovers in France," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) hal-00633782, HAL.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local Export Spillovers in France," Working Papers 2009-18, CEPII research center.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local export spillovers in France," PSE Working Papers halshs-00566142, HAL.
- James E. Rauch, 1996.
"Networks versus Markets in International Trade,"
NBER Working Papers
5617, National Bureau of Economic Research, Inc.
- Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2008.
"Export Dynamics in Colombia: Transactions Level Evidence,"
BORRADORES DE ECONOMIA
004748, BANCO DE LA REPÚBLICA.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, . "Export Dynamics in Colombia: Transactions Level Evidence," Borradores de Economia 522, Banco de la Republica de Colombia.
- Peter K. Schott, 2008.
"The relative sophistication of Chinese exports,"
CEPR & CES & MSH, vol. 23, pages 5-49, 01.
- Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1027-1043, November.
- 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.
- Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
- 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.
- Crespo, Nuno & Fontoura, Maria Paula, 2007.
"Determinant Factors of FDI Spillovers - What Do We Really Know?,"
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 Department of Economics 2005/06, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Elsa Leromain & Gianluca Orefice, 2013. "New Revealed Comparative Advantage Index: Dataset and Empirical Distribution," Working Papers 2013-20, CEPII research center.
- Ricardo Hausmann & Cesar A. Hidalgo, 2011.
"The Network Structure of Economic Output,"
1101.1707, arXiv.org, revised Feb 2012.
- Usui, Norio & A. Abdon, Arnelyn May, 2010. "Structural Transformation in the Kyrgyz Republic: Engineering Future Paths of Capability Accumulation," ADB Economics Working Paper Series 200, Asian Development Bank.
- Françoise Lemoine & Grégoire Mayo & Sandra Poncet & Deniz Ünal, 2014. "The Geographic Pattern of China's Growth and Convergence within Industry," Working Papers 2014-04, CEPII research center.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod).
If references are entirely missing, you can add them using this form.