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How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive

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  • Robert Koopman
  • Zhi Wang
  • Shang-Jin Wei

Abstract

The rise of China in world trade has brought both benefits and anxiety to other economies. For many policy questions, it is crucial to know the extent of domestic value added (DVA) in exports, but the computation is more complicated when processing trade is pervasive. We propose a method for computing domestic and foreign contents that allows for processing trade. By our estimation, the share of domestic content in exports by the PRC was about 50% before China’s WTO membership, and has risen to over 60% since then. There are also interesting variations across sectors. Those sectors that are likely labeled as relatively sophisticated such as electronic devices have particularly low domestic content (about 30% or less).

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14109.

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Date of creation: Jun 2008
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Handle: RePEc:nbr:nberwo:14109

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  1. Does Import Competition Improve the Quality of Domestic Goods?
    by Blog Author in Liberty Street Economics on 2013-04-08 11:00:00
  2. Les aventures d'un Boeing dans l'économie globalisée
    by ? in D'un champ l'autre on 2014-05-04 16:01:00
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