The People’s Republic of China’s High-tech Exports: Myth and Reality
AbstractTrade statistics portray the People's Republic of China (PRC) as the largest exporter of high-tech products. In this paper the author argues that the PRC’s leading position in high-tech exports is a myth created by outdated trade statistics, which are inconsistent with trade based on global supply chains. Current trade statistics mistakenly credit entire values of assembled high-tech products to the PRC, thus greatly inflating its exports. He suggests that a value-added-based approach should be adopted to accurately measure high-tech exports. Furthermore, if assembly is the only source of the value-added generated by PRC workers, in terms of technological contribution these assembled high-tech exports are no different from labor-intensive products, so they should be excluded from the high-tech classification.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 357.
Length: 12 pages
Date of creation: 07 May 2012
Date of revision:
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More information through EDIRC
prc; high-tech; value added; iphone;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F20 - International Economics - - International Factor Movements and International Business - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-INT-2012-05-15 (International Trade)
- NEP-SEA-2012-05-15 (South East Asia)
- NEP-TRA-2012-05-15 (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.:
- Xing, Yuqing, 2012.
"Processing trade, exchange rates and China's bilateral trade balances,"
Journal of Asian Economics,
Elsevier, vol. 23(5), pages 540-547.
- Yuqing Xing, 2011. "Processing Trade, Exchange Rates and China’s bilateral Trade Balances," GRIPS Discussion Papers 10-30, National Graduate Institute for Policy Studies.
- Yuqing Xing & Neal Detert, 2010. "How iPhone Widens the US Trade Deficits with the PRC?," GRIPS Discussion Papers 10-21, National Graduate Institute for Policy Studies.
- Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 81-116, February.
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