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Electronics Production Upgrading: Is China Exceptional?

Author

Listed:
  • Ari Van Assche
  • Byron Gangnes

Abstract

In this paper, we make use of a unique world electronics production data set to assess China's upgrading trajectory in the global electronics industry. Contrary to existing studies, we find no evidence that China's electronics production activities are more sophisticated than one would expect from its level of development. We also find little evidence that China is rapidly upgrading into more sophisticated production activities. Cette étude emploie une banque de données unique sur la production électronique mondiale pour évaluer la trajectoire de perfectionnement de la Chine dans le secteur électronique mondial. Contrairement aux études existantes, nous ne trouvons aucune évidence que les activités de production de la Chine dans le secteur électronique sont plus sophistiquées que ce à quoi on pourrait s'attrendre de son niveau de développement. En plus, nous trouvons peu d'évidence que la Chine perfectionne rapidement ses activités de production.

Suggested Citation

  • Ari Van Assche & Byron Gangnes, 2007. "Electronics Production Upgrading: Is China Exceptional?," CIRANO Working Papers 2007s-16, CIRANO.
  • Handle: RePEc:cir:cirwor:2007s-16
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    File URL: http://www.cirano.qc.ca/files/publications/2007s-16.pdf
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    References listed on IDEAS

    as
    1. Carl Bonham & Byron Gangnes & Ari Van Assche, 2007. "Fragmentation and East Asia's information technology trade," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 215-228.
    2. 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.
    3. Peter K. Schott, 2008. "The relative sophistication of Chinese exports," Economic Policy, CEPR;CES;MSH, vol. 23, pages 5-49, January.
    4. Finger, J M & Kreinin, M E, 1979. "A Measure of 'Export Similarity' and Its Possible Uses," Economic Journal, Royal Economic Society, vol. 89(356), pages 905-912, December.
    5. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2007. "On Some Effects of International Fragmentation of Production on Comparative Advantages, Trade Flows and the Income of Countries," The World Economy, Wiley Blackwell, vol. 30(11), pages 1726-1769, November.
    6. 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.
    7. Lall, Sanjaya & Weiss, John & Zhang, Jinkang, 2006. "The "sophistication" of exports: A new trade measure," World Development, Elsevier, vol. 34(2), pages 222-237, February.
    8. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gabor Pula & Daniel Santabárbara, 2012. "Is china climbing up the quality ladder?," Working Papers 1209, Banco de España;Working Papers Homepage.
    2. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    3. Byron Gangnes & Ari Van Assche, 2010. "Global Production Networks in Electronics and Intra-Asian Trade," LICOS Discussion Papers 25710, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. repec:eee:wdevel:v:102:y:2018:i:c:p:90-110 is not listed on IDEAS
    5. Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi, 2012. "The impact of China on manufacturing exports of Italy and Germany," RSCAS Working Papers 2012/26, European University Institute.
    6. Ari Van Assche & Byron Gangnes, 2011. "Product Modularity and the Rise of Global Value Chains: Insights from the Electronics Industry," CIRANO Working Papers 2011s-64, CIRANO.
    7. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    8. repec:hal:cesptp:halshs-00962593 is not listed on IDEAS
    9. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    10. Yuan Fang & Guoda Gu & Hongyi Li, 2015. "The impact of financial development on the upgrading of China’s export technical sophistication," International Economics and Economic Policy, Springer, vol. 12(2), pages 257-280, June.
    11. Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," PSE - G-MOND WORKING PAPERS halshs-00960684, HAL.
    12. repec:hal:cesptp:halshs-00960684 is not listed on IDEAS
    13. Ari Van Assche & Chang Hong & Veerle Slootmaekers, 2008. "China's International Competitiveness: Reassessing the Evidence," LICOS Discussion Papers 20508, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    14. Joachim Jarreau & Sandra Poncet, 2011. "Export sophistication and economic growth: evidence from China," Working Papers halshs-00962593, HAL.
    15. Giorgia Giovannetti & Marco Sanfilippo & Margherita Velucchi, 2011. "The “China effect” on EU Exports to OECD markets – A focus on Italy," Working Papers - Economics wp2011_17.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    16. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    17. Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," Working Papers halshs-00960684, HAL.
    18. Xu, Bin, 2010. "The sophistication of exports: Is China special?," China Economic Review, Elsevier, vol. 21(3), pages 482-493, September.

    More about this item

    Keywords

    China; industrial upgrading; electronics.; Chine; perfectionnement industriel; électronique.;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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