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Who gains and who loses from China’s growth?

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  • Cheptea, Angela

Abstract

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 becoming a leading exporter, second only to EU 27. Products exported by China incorporate, however, a large share of foreign inputs. By 2007 one tenth of internationally traded products were shipped to China. These recent evolutions reveal the large and growing domestic market potential and explain the increasing attractiveness of the Chinese market to foreign producers. The present paper attempts to identify the countries that profit and suffer the most from the recent expansion 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.

Suggested Citation

  • Cheptea, Angela, 2012. "Who gains and who loses from China’s growth?," Working Papers 207990, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    • Handle: RePEc:ags:inrasl:207990
    DOI: 10.22004/ag.econ.207990
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    Cited by:

    1. Cheptea, Angela, "undated". "Who gains and who loses from China’s growth?," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135788, European Association of Agricultural Economists.

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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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