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China's International Competitiveness: Reassessing the Evidence

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Listed:
  • Ari Van Assche
  • Chang Hong
  • Veerle Slootmaekers

Abstract

In this paper we argue that export data are an inadequate tool to measure a country's international competitiveness when external trade is dominated by export-processing trade. Export data do not necessarily reflect the value produced in an exporting country, but rather capture the gross value of the products that leave a country's ports. We demonstrate that, in the case of China, this leads to an upward bias in both the perceived quantitative and qualitative threats to the Western economies.

Suggested Citation

  • 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.
  • Handle: RePEc:lic:licosd:20508
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp205.pdf
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    References listed on IDEAS

    as
    1. Ari Van Assche & Byron Gangnes, 2010. "Electronics production upgrading: is China exceptional?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(5), pages 477-482.
    2. Byron Gangnes & Ari Van Assche, 2008. "China and the Future of Asian Electronics Trade," CIRANO Working Papers 2008s-05, CIRANO.
    3. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
    4. F. Gerard Adams & Byron Gangnes & Yochanan Shachmurove, 2006. "Why is China so Competitive? Measuring and Explaining China's Competitiveness," The World Economy, Wiley Blackwell, vol. 29(2), pages 95-122, February.
    5. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643.
    6. Abraham, Filip & Konings, Jozef & Slootmaekers, Veerle, 2007. "FDI Spillovers in the Chinese Manufacturing Sector: Evidence of firm heterogeneity," CEPR Discussion Papers 6573, C.E.P.R. Discussion Papers.
    7. Ph. Monfort & Hylke Vandenbussche & E. Forlani, 2008. "Chinese Competition and Skill-Upgrading in European Textiles: Firm-level Evidence," LICOS Discussion Papers 19808, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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    Cited by:

    1. Ahmed, Khalid & Long, Wei, 2012. "An Analysis of Core Factors Contributing to U.S – China Trade Imbalance," MPRA Paper 44733, University Library of Munich, Germany.
    2. Ana Cardoso & António Portugal Duarte, 2017. "The impact of the Chinese exchange policy on foreign trade with the European Union," Brazilian Journal of Political Economy, Center of Political Economy, vol. 37(4), pages 870-893.
    3. Ma, Alyson C. & Van Assche, Ari, 2010. "The role of trade costs in global production networks : evidence from China's processing trade regime," Policy Research Working Paper Series 5490, The World Bank.

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    More about this item

    Keywords

    China; export-processing trade; technological intensity; trade balance;
    All these keywords.

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