Who Gains and Who Loses from China's Growth?
Emerging countries have been winning large market shares since the early 1990s. Among these, China stands out with the most remarkable performance: it almost tripled its world market share since 1994 reaching 16.1% in 2007. The present paper attempts to identify the countries that have profited the most from this increase in the size of the Chinese market. I use an econometric shift-share methodology, that permits to identify for each trade flow the share of growth arising from the capacity to target the products and markets with the highest increase in demand, and the share due exclusively to exporter’s performance.
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