How Dependent is the Chinese Economy on Exports and in What Sense has its Growth been Export-led?
AbstractThis paper studies the interaction between foreign trade and domestic demand and supply in China¡¦s economic transformation. It compares China¡¦s export dependency with other economies using input-output analysis. The paper also conducts econometric analysis of provincial level data to examine causality between the growth of foreign trade and different components of domestic demand, and causality between the growth of foreign trade and total factor productivity. The main message is that China¡¦s export dependency is significantly lower than commonly thought. Moreover, the contribution of export to economic growth in China came mainly from its impact on total factor productivity growth from a supply perspective rather than its multiplier effect from a demand perspective. This relationship was found to be stronger in the more developed coastal areas than in the less developed inland areas.
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Bibliographic InfoPaper provided by Hong Kong Monetary Authority in its series Working Papers with number 0814.
Length: 36 pages
Date of creation: Oct 2008
Date of revision:
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More information through EDIRC
Export-led growth; Export dependency; Input-output analysis; Malmquist index;
Other versions of this item:
- He, Dong & Zhang, Wenlang, 2010. "How dependent is the Chinese economy on exports and in what sense has its growth been export-led?," Journal of Asian Economics, Elsevier, vol. 21(1), pages 87-104, February.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-CNA-2008-11-11 (China)
- NEP-INT-2008-11-11 (International Trade)
- NEP-TRA-2008-11-11 (Transition Economics)
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.:
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