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Has China de-industrialised other developing countries?

  • Adrian Wood (ODID), Joerg Mayer (UNCTAD)

China's opening to trade is interpreted as a shift in world average factor endowments, which altered the comparative advantage of other countries. In the rest of the world on average, this shift reduced the ratio of labour-intensive manufacturing to primary production by 7-10% for output and 10-15% for exports. China's impact is clearest on East Asian countries: in other developing regions, it was swamped by other causes of structural change. The de-industrialising effect was significant, but not big enough to be a serious threat to growth or equity in most other developing countries

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Paper provided by Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps175.

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Handle: RePEc:qeh:qehwps:qehwps175
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