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What's So Special about China's Exports? A Comment

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  • Masanaga Kumakura

Abstract

Dani Rodrik argues that China's exports are unusually sophisticated for a country at its income level. He also claims that China's export sophistication reflects the government's successful industrial policy and has been instrumental in the recent acceleration of its economic growth. Although Rodrik's interpretation of China's economic growth is broadly correct, the accuracy of his empirical analysis is questionable. This note identifies several problems regarding the “export sophistication” index used in his empirical work and casts doubt on his analysis.

Suggested Citation

  • Masanaga Kumakura, 2007. "What's So Special about China's Exports? A Comment," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(5), pages 18-37, September.
    • Handle: RePEc:bla:chinae:v:15:y:2007:i:5:p:18-37
    DOI: 10.1111/j.1749-124X.2007.00081.x
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    References listed on IDEAS

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    1. Dani Rodrik, 2008. "Understanding South Africa's economic puzzles," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 769-797, October.
    2. C. H. Kwan, 2002. "The Rise of China and Asia's Flying-Geese Pattern of Economic Development: An Empirical Analysis Based on US Import Statistics," Discussion papers 02009, Research Institute of Economy, Trade and Industry (RIETI).
    3. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19, September.
    4. Peter K. Schott, 2006. "The Relative Sophistication of Chinese Exports," NBER Working Papers 12173, National Bureau of Economic Research, Inc.
    5. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    6. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    7. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
    8. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
    9. Ahmed Zoromé, 2007. "Concept of Offshore Financial Centers: In Search of an Operational Definition," IMF Working Papers 2007/087, International Monetary Fund.
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    Cited by:

    1. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    2. Zheng, Hong-Hao & Wang, Zheng-Xin, 2019. "Measurement and comparison of export sophistication of the new energy industry in 30 countries during 2000–2015," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 140-158.
    3. Shunli Yao, 2009. "Why Are Chinese Exports Not So Special?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(1), pages 47-65, January.
    4. Zou, Zongsen & Zhang, Yu & Li, Xin & Wang, Xiuling, 2023. "The nexus between product sophistication and export survival: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 480-502.
    5. Shunli Yao, 2010. "Is China’s Export Sophistication Really Special?," ARTNeT Policy Briefs 30, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    6. Song Zhang & Chunlai Chen, 2020. "Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 64-89, September.

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