How Dependent is the Chinese Economy on Exports and in What Sense has its Growth been Export-led?
This paper studies the interaction between foreign trade and domestic demand and supply in China¡¦s economic transformation. It compares China¡¦s export dependency with other economies using input-output analysis. The paper also conducts econometric analysis of provincial level data to examine causality between the growth of foreign trade and different components of domestic demand, and causality between the growth of foreign trade and total factor productivity. The main message is that China¡¦s export dependency is significantly lower than commonly thought. Moreover, the contribution of export to economic growth in China came mainly from its impact on total factor productivity growth from a supply perspective rather than its multiplier effect from a demand perspective. This relationship was found to be stronger in the more developed coastal areas than in the less developed inland areas.
|Date of creation:||Oct 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 55th Floor, Two International Finance Centre, 8 Finance Street, Central|
Web page: http://www.info.gov.hk/hkma/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven Barnett & Ray Brooks, 2006. "Whatâ€™s Driving Investment in China?," IMF Working Papers 06/265, International Monetary Fund.
- Venet, Baptiste & Hurlin, Christophe, 2001. "Granger Causality Tests in Panel Data Models with Fixed Coefficients," Economics Papers from University Paris Dauphine 123456789/6159, Paris Dauphine University.
- Kui-Wai Li, 2003.
"China's Capital and Productivity Measurement Using Financial Resources,"
851, Economic Growth Center, Yale University.
- Kui-Wai Li, 2004. "China's Capital and Productivity Measurement Using Financial Resources," Yale School of Management Working Papers ysm338, Yale School of Management.
- Xiaolan Fu, 2004. "Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries," ESRC Centre for Business Research - Working Papers wp278, ESRC Centre for Business Research.
- Dong He & Wenlang Zhang & Jimmy Shek, 2006.
"How Efficient Has Been China's Investment? Empirical Evidence from National and Provincial Data,"
0619, Hong Kong Monetary Authority.
- Dong He & Wenlang Zhang & Jimmy Shek, 2007. "How Efficient Has Been China'S Investment? Empirical Evidence From National And Provincial Data," Pacific Economic Review, Wiley Blackwell, vol. 12(5), pages 597-617, December.
- Panagariya, Arvind, 1991. "Unraveling the mysteries of China's foreign trade regime : a view from Jiangsu Province," Policy Research Working Paper Series 801, The World Bank.
- Robert C. Feenstra & Chang Hong, 2007.
"China's Exports and Employment,"
NBER Working Papers
13552, National Bureau of Economic Research, Inc.
- Dong He & Lillian Cheung & Jian Chang, 2007. "Sense and Nonsense on Asia's Export Dependency and The Decoupling Thesis," Working Papers 0703, Hong Kong Monetary Authority.
- Gene M. Grossman & Elhanan Helpman, 1990.
"Trade, Knowledge Spillovers, and Growth,"
NBER Working Papers
3485, National Bureau of Economic Research, Inc.
- Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
- Matthews, Kent & Guo, Jianguang & Zhang, Nina, 2007.
"Non-Performing Loans and Productivity in Chinese Banks: 1997-2006,"
Cardiff Economics Working Papers
E2007/30, Cardiff University, Cardiff Business School, Economics Section.
- Kent Matthews & Xu Zhang & Jianguang Guo, 2009. "Nonperforming Loans and Productivity in Chinese Banks, 1997-2006," Chinese Economy, M.E. Sharpe, Inc., vol. 42(2), pages 30-47, March.
- Matthews, Kent & Guo, Jianguang & Zhang, Nina, 2007. "Non-Performing Loans and Productivity in Chinese Banks: 1997-2006," Cardiff Economics Working Papers E2008/17, Cardiff University, Cardiff Business School, Economics Section, revised Aug 2008.
- Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
When requesting a correction, please mention this item's handle: RePEc:hkg:wpaper:0814. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Chan)
If references are entirely missing, you can add them using this form.