Why Are China's Exports Special?: The Role of FDI, Regional Trade, and Government Policies
This paper investigates why China is able to achieve a high level of technological sophistication in its exports beyond its current level of development. It concludes that a great portion of the high-tech exports are of the processing and assembly type and produced by foreign-invested enterprises. China's comparative advantage of labor abundance and the Chinese government's foreign direct investment (FDI) policy have encouraged the expansion of FDI-led export in general and FDI-led processing trade in particular. Given the disadvantages of the FDI-led export expansion, reform of the government's FDI and trade policies is needed to improve technological development and to enhance China's production and trade structures.
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Volume (Year): 41 (2008)
Issue (Month): 6 (November)
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References listed on IDEAS
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- Lionel Fontagné & Guillaume Gaulier & Soledad Zignago, 2007.
"Specialisation across Varieties within Products and North-South Competition,"
2007-06, CEPII research center.
- Lionel Fontagné & Guillaume Gaulier & Soledad Zignago, 2008. "Specialization across varieties and North-South competition," Economic Policy, CEPR;CES;MSH, vol. 23, pages 51-91, 01.
- Kim Song Tan & Hoe Ee Khor, 2006. "China's Changing Economic Structure and Implications for Regional Patterns of Trade, Production and Integration," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(6), pages 1-19.
- Guillaume Gaulier & Françoise Lemoine & Deniz Ünal-Kesenci, 2005. "China’s Integration in East Asia: Production Sharing, FDI & High-Tech Trade," Working Papers 2005-09, CEPII research center.
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