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Export upgrading and growth in China: the prerequisite of domestic embeddedness

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  • Sandra Poncet

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PSE - Paris School of Economics)

  • Felipe Starosta

    (UP1 - Université Panthéon-Sorbonne)

Abstract

Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available to domestic _rms operating in ordinary trade is an important driver of economic growth. However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign _rms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is key in order for capacity building and technology adoption to be growth enhancing.

Suggested Citation

  • Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," PSE - G-MOND WORKING PAPERS halshs-00960684, HAL.
  • Handle: RePEc:hal:gmonwp:halshs-00960684
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00960684
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Shengjun Zhu & Canfei He & Yi Zhou, 2015. "How to jump further? Path dependent and path breaking in an uneven industry space," Papers in Evolutionary Economic Geography (PEEG) 1524, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    2. Jérome Valette, 2017. "Do migrants transfer productive knowledge back to their origin countries?," Working Papers halshs-01425451, HAL.
    3. Gauvin, Ludovic & Rebillard, Cyril, 2013. "Towards Recoupling? Assessing the Impact of a Chinese Hard Landing on Commodity Exporters: Results from Conditional Forecast in a GVAR Model," MPRA Paper 65457, University Library of Munich, Germany.
    4. Kemp-Benedict, Eric, 2014. "An interpretation and critique of the Method of Reflections," MPRA Paper 60705, University Library of Munich, Germany.
    5. repec:tou:journl:v:46:y:2017:p:21-41 is not listed on IDEAS
    6. M. Albert & C. Jude & C. Rebillard, 2015. "The Long Landing Scenario: Rebalancing from Overinvestment and Excessive Credit Growth. Implications for Potential Growth in China," Working papers 572, Banque de France.
    7. repec:eee:jcecon:v:45:y:2017:i:4:p:809-826 is not listed on IDEAS
    8. Jérome VALETTE, 2016. "Do migrants transfer productive knowledge back to their origin countries?," Working Papers 201622, CERDI.
    9. repec:bla:jecsur:v:31:y:2017:i:4:p:905-922 is not listed on IDEAS
    10. John Gibson & Chao Li, 2017. "The Erroneous Use Of China'S Population And Per Capita Data: A Structured Review And Critical Test," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 905-922, September.
    11. Maggioni, Daniela & Lo Turco, Alessia & Gallegati, Mauro, 2016. "Does product complexity matter for firms' output volatility?," Journal of Development Economics, Elsevier, vol. 121(C), pages 94-109.
    12. Saleh Albeaik & Mary Kaltenberg & Mansour Alsaleh & Cesar A. Hidalgo, 2017. "Improving the Economic Complexity Index," Papers 1707.05826, arXiv.org, revised Jul 2017.

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    Keywords

    Economic complexity; Export upgrading; FDI; Processing trade; Growth; China;

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