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Are U.S. Exports Different from China's Exports? Evidence from Japan's Imports

  • Kozo Koyota

    (Research Seminar in International Economics, University of Michigan)

Are U.S. exports different from China's exports? If so, how? This paper attempts to answer this question, focusing on the quality, variety, and overlap of their products. Using product-level manufacturing import data from Japan, I find that the exports of China and the United States are similar in terms of variety. More than 85 percent of U.S. export products to Japan are commonly exported from China. However, U.S. exports are different from China's exports in terms of quality. A comparison with the European Union (EU) shows that U.S. exports are similar to EU exports in terms of both quality and variety when compared to Chinaàs exports. These results suggest that quality matters. Both the EU and the United States are better endowed with the factors needed to produce quality or are relatively more productive in producing quality products than China.

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File URL: http://www.fordschool.umich.edu/rsie/workingpapers/Papers576-600/r576.pdf
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Paper provided by Research Seminar in International Economics, University of Michigan in its series Working Papers with number 576.

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Length: 27 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:mie:wpaper:576
Contact details of provider: Postal: ANN ARBOR MICHIGAN 48109
Web page: http://fordschool.umich.edu/rsie/
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  13. Kozo Kiyota, 2011. "Paths of Development and Wage Variations," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 697-717, 09.
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