China and the Manufacturing Exports of Other Developing Countries
AbstractIn this paper, we examine the impact of China's growth on developing countries that specialize in manufacturing. Over 2000-2005, manufacturing accounted for 32% of China's GDP and 89% of its merchandise exports, making it more specialized in the sector than any other large developing economy. Using the gravity model of trade, we decompose bilateral trade into components associated with demand conditions in importing countries, supply conditions in exporting countries, and bilateral trade costs. We identify 10 developing economies for which manufacturing represents more than 75% of merchandise exports (Hungary, Malaysia, Mexico, Pakistan, the Philippines, Poland, Romania, Sri Lanka, Thailand, and Turkey), which are in theory the countries most exposed to the adverse consequences of China's export growth. Our results suggest that had China's export supply capacity been constant over the 1995-2005 period, demand for exports would have been 0.8% to 1.6% higher in the 10 countries studied. Thus, even for the developing countries most specialized in export manufacturing, China's expansion has represented only a modest negative shock.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14497.
Date of creation: Nov 2008
Date of revision:
Publication status: published as Gordon H. Hanson, Raymond Robertson. "China and the Manufacturing Exports of Other Developing Countries," in Robert C. Feenstra and Shang-Jin Wei, editors, "China's Growing Role in World Trade" University of Chicago Press (2010)
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Other versions of this item:
- Gordon H. Hanson & Raymond Robertson, 2010. "China and the Manufacturing Exports of Other Developing Countries," NBER Chapters, in: China's Growing Role in World Trade, pages 137-159 National Bureau of Economic Research, Inc.
- F15 - International Economics - - Trade - - - Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-CNA-2008-11-25 (China)
- NEP-CWA-2008-11-25 (Central & Western Asia)
- NEP-DEV-2008-11-25 (Development)
- NEP-INT-2008-11-25 (International Trade)
- NEP-SEA-2008-11-25 (South East Asia)
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