Product relatedness and firm exports in China
This paper proposes the first evaluation using micro-level data of the gains from the consistency of activities with a local comparative advantage. Using firm-level data from Chinese customs over the 2000-6 period, the study investigates the relationship between the export performance of firms and how their products relate to local comparative advantage. The key indicator measures the density of the links between a product and the local product space. Hence, it combines information on the intrinsic relatedness of a good with information on the local pattern of specialization. The results indicate that exports grow faster for goods that have denser links with those currently produced in the firm's locality. The density of links between products seems to yield export-enhancing spillovers. However, this positive effect of product relatedness on export performance is mainly limited to ordinary trade activities and domestic firms. It is also stronger for more productive firms, suggesting that spillover diffusion may be hindered by insufficient absorptive capacity.
|Date of creation:||01 Oct 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:
More information through EDIRC
References listed on IDEAS
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.:
- Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1027-1043, November.
- Hausmann, Ricardo & Klinger, Bailey, 2006.
"South Africa's Export Predicament,"
Working Paper Series
rwp06-040, Harvard University, John F. Kennedy School of Government.
- Crespo, Nuno & Fontoura, Maria Paula, 2007.
"Determinant Factors of FDI Spillovers - What Do We Really Know?,"
Elsevier, vol. 35(3), pages 410-425, March.
- Nuno Crespo & Maria Paula Fontoura, 2005. "Determinant Factors of FDI Spillovers – What Do We Really Know?," Working Papers Department of Economics 2005/06, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, .
"Export Dynamics in Colombia: Transactions Level Evidence,"
Borradores de Economia
522, Banco de la Republica de Colombia.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2008. "Export Dynamics in Colombia: Transactions Level Evidence," BORRADORES DE ECONOMIA 004748, BANCO DE LA REPÚBLICA.
- Peter K. Schott, 2008.
"The relative sophistication of Chinese exports,"
CEPR;CES;MSH, vol. 23, pages 5-49, 01.
- Rodrik, Dani, 2006.
"What's So Special about China's Exports?,"
Working Paper Series
rwp06-001, Harvard University, John F. Kennedy School of Government.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010. "Local Export spillovers in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00633782, HAL.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997.
"Spillovers, foreign investment, and export behavior,"
Journal of International Economics,
Elsevier, vol. 43(1-2), pages 103-132, August.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007.
"What you export matters,"
Journal of Economic Growth,
Springer, vol. 12(1), pages 1-25, March.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005. "What You Export Matters," Working Paper Series rwp05-063, Harvard University, John F. Kennedy School of Government.
- Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005. "What You Export Matters," NBER Working Papers 11905, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2006. "What You Export Matters," CEPR Discussion Papers 5444, C.E.P.R. Discussion Papers.
- Koenig, Pamina & Mayneris, Florian & Poncet, Sandra, 2010.
"Local export spillovers in France,"
European Economic Review,
Elsevier, vol. 54(4), pages 622-641, May.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local Export Spillovers in France," Working Papers 2009-18, CEPII research center.
- KOENIG, Pamina & MAYNERIS, Florian & PONCET, Sandra, . "Local export spillovers in France," CORE Discussion Papers RP -2225, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Arnaud Costinot & Dave Donaldson & Ivana Komunjer, 2010.
"What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas,"
NBER Working Papers
16262, National Bureau of Economic Research, Inc.
- Arnaud Costinot & Dave Donaldson & Ivana Komunjer, 2012. "What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 581-608.
- Elsa Leromain & Gianluca Orefice, 2014.
"New revealed comparative advantage index: Dataset and empirical distribution,"
CEPII research center, issue 139, pages 48-70.
- Elsa Leromain & Gianluca Orefice, 2013. "New Revealed Comparative Advantage Index: Dataset and Empirical Distribution," Working Papers 2013-20, CEPII research center.
- Gaulier, Guillaume & Zignago, Soledad, 2004.
"Notes on BACI (analytical database of international trade). 1989-2002 version,"
32401, University Library of Munich, Germany.
- Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers 2010-23, CEPII research center.
- Shang-Jin Wei & Jaebin Ahn & Amit K. Khandelwal, 2010.
"The Role of Intermediaries in Facilitating Trade,"
- Rauch, James E., 1999.
"Networks versus markets in international trade,"
Journal of International Economics,
Elsevier, vol. 48(1), pages 7-35, June.
- Lemoine, Francoise & Unal-Kesenci, Deniz, 2004. "Assembly Trade and Technology Transfer: The Case of China," World Development, Elsevier, vol. 32(5), pages 829-850, May.
- Galina Hale & Cheryl Long, 2011.
"Are There Productivity Spillovers From Foreign Direct Investment In China?,"
Pacific Economic Review,
Wiley Blackwell, vol. 16(2), pages 135-153, 05.
- Galina Hale & Cheryl Long, 2007. "Are there productivity spillovers from foreign direct investment in China?," Working Paper Series 2006-13, Federal Reserve Bank of San Francisco.
- Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
- Ricardo Hausmann & César Hidalgo, 2011.
"The network structure of economic output,"
Journal of Economic Growth,
Springer, vol. 16(4), pages 309-342, December.
- Deborah L. Swenson, 2008.
"Multinationals and the creation of Chinese trade linkages,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 41(2), pages 596-618, May.
- Deborah L. Swenson, 2007. "Multinationals and the Creation of Chinese Trade Linkages," NBER Working Papers 13271, National Bureau of Economic Research, Inc.
- Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
- Usui, Norio & A. Abdon, Arnelyn May, 2010. "Structural Transformation in the Kyrgyz Republic: Engineering Future Paths of Capability Accumulation," ADB Economics Working Paper Series 200, Asian Development Bank.
- Dani Rodrik, 2006. "Whatâ€™s So Special about Chinaâ€™s Exports?," Working Papers id:410, eSocialSciences.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6676. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.