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Machinery and China's nexus of foreign trade and economic growth

Author

Listed:
  • Dic Lo

    (Department of Economics, SOAS, University of London, UK)

  • Thomas M. H. Chan

    (China Business Centre, Hong Kong Polytechnic University, Hung Hom, Hong Kong)

Abstract

This paper offers an interpretation of China's nexus of foreign trade and economic growth that centres around technological development. Evidence, mainly related to the performance of the machinery sector, is presented indicating that the phenomenal export expansion is not reducible to a market-centred trade regime, and that the standard thesis of export-led growth would not apply-the contribution of trade to growth realises rather through imports. With an emphasis on the central importance of the production side, we present further evidence to substantiate the argument that the relatively successful aspects of the trade-growth nexus have been largely underpinned by a mix of the market mechanism and various non-market institutions. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Dic Lo & Thomas M. H. Chan, 1998. "Machinery and China's nexus of foreign trade and economic growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(6), pages 733-749.
    • Handle: RePEc:wly:jintdv:v:10:y:1998:i:6:p:733-749
    DOI: 10.1002/(SICI)1099-1328(1998090)10:6<733::AID-JID506>3.0.CO;2-5
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    References listed on IDEAS

    as
    1. Hanna, N. & Boyson, S. & Gunaratne, S., 1996. "The East Asian Miracle and Information Technology," World Bank - Discussion Papers 326, World Bank.
    2. World Bank, 1987. "World Development Report 1987," World Bank Publications - Books, The World Bank Group, number 5970, April.
    3. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
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    Cited by:

    1. 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.
    2. Dic Lo, 2003. "China, the ‘East Asian Model’ and Late Development," Working Papers 131, Department of Economics, SOAS University of London, UK.
    3. Badibanga, Thaddee Mutumba & Diao, Xinshen & Roe, Terry L. & Somwaru, Agapi, 2008. "Dynamics of Structural Transformation: Understanding the Key Factors That Drive Innovative Activities in Selected Asian and African Countries," Bulletins 43890, University of Minnesota, Economic Development Center.
    4. Glawe, Linda & Wagner, Helmut, 2020. "China in the middle-income trap?," China Economic Review, Elsevier, vol. 60(C).
    5. Chien-Chiang Lee & Chi-Chuan Lee & Chun-Ping Chang, 2015. "Globalization, Economic Growth and Institutional Development in China," Global Economic Review, Taylor & Francis Journals, vol. 44(1), pages 31-63, March.
    6. Dic Lo, 2004. "Assessing the Role of Foreign Direct Investment in China’s Economic Development: Macro Indicators and Insights from Sectoral-Regional Analyses," Working Papers 135, Department of Economics, SOAS University of London, UK.
    7. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    8. Dic Lo, 2004. "China'S Nexus Of Foreign Trade And Economic Growth: Making Sense Of The Anomaly," Working Papers 143, Department of Economics, SOAS University of London, UK.
    9. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    10. Ana Luísa Coutinho & Maria Paula Fontoura, 2012. "What determines the export performance? A comparative analysis of China and India in the European Union," Working Papers Department of Economics 2012/35, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    11. Da HUO & Ken HUNG, 2015. "Internationalization Strategy and Firm Performance: Estimation of Corporate Strategy Effect Based on Big Data of Chinese IT Companies in a Complex Network," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 148-163, June.

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