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What's So Special About China's Exports?

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  • Rodrik, Dani

Abstract

Much more than comparative advantage and free markets have been at play in shaping China's export success. Government policies have helped nurture domestic capabilities in consumer electronics and other advanced areas that would most likely not have developed in their absence. As a result, China has ended up with an export basket that is significantly more sophisticated than what would be normally expected for a country at its income level. This has been an important determinant of China's rapid growth. What matters for China's future growth is not the volume of exports, but whether China will continue to latch on to higher-income products over time.

Suggested Citation

  • Rodrik, Dani, 2006. "What's So Special About China's Exports?," CEPR Discussion Papers 5484, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5484
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    References listed on IDEAS

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    1. 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.
    2. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," Working Paper Series rwp04-047, Harvard University, John F. Kennedy School of Government.
    3. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    4. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    5. Mr. Eswar S Prasad, 2004. "China's Growth and Integration into the World Economy: Prospects and Challenges," IMF Occasional Papers 2004/006, International Monetary Fund.
    6. Jorg Mayer & Adrian Wood, 2001. "South Asia's Export Structure in a Comparative Perspective," Oxford Development Studies, Taylor & Francis Journals, vol. 29(1), pages 5-29.
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    More about this item

    Keywords

    development; economic growth;

    JEL classification:

    • F1 - International Economics - - Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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