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/
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.:
- Ricardo Hausmann & Cesar A. Hidalgo, 2011.
"The Network Structure of Economic Output,"
1101.1707, arXiv.org, revised Feb 2012.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005.
"What You Export Matters,"
Working Paper Series
rwp05-063, Harvard University, John F. Kennedy School of Government.
- 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, 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.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- 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.
- Jarreau, Joachim & Poncet, Sandra, 2012.
"Export sophistication and economic growth: Evidence from China,"
Journal of Development Economics,
Elsevier, vol. 97(2), pages 281-292.
- Joachim Jarreau & Sandra Poncet, 2011. "Export sophistication and economic growth: evidence from China," PSE - G-MOND WORKING PAPERS halshs-00962593, HAL.
- 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.
- Shang-Jin Wei & Jaebin Ahn & Amit K. Khandelwal, 2010.
"The Role of Intermediaries in Facilitating Trade,"
- Elsa Leromain & Gianluca Orefice, 2013.
"New Revealed Comparative Advantage Index: Dataset and Empirical Distribution,"
2013-20, CEPII research center.
- Elsa Leromain & Gianluca Orefice, 2014. "New revealed comparative advantage index: Dataset and empirical distribution," Economie Internationale, CEPII research center, issue 139, pages 48-70.
- Rodrik, Dani, 2006.
"What's So Special about China's Exports?,"
Working Paper Series
rwp06-001, Harvard University, John F. Kennedy School of Government.
- 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.
- 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.
- 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.
- Ricardo Hausmann & Bailey Klinger, 2008.
"South Africa's export predicament ,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(4), pages 609-637, October.
- 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.
- 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.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010.
"Local Export spillovers in France,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Rauch, James E., 1999.
"Networks versus markets in international trade,"
Journal of International Economics,
Elsevier, vol. 48(1), pages 7-35, June.
- Peter K. Schott, 2006.
"The Relative Sophistication of Chinese Exports,"
NBER Working Papers
12173, National Bureau of Economic Research, Inc.
- Guillaume Gaulier & Soledad Zignago, 2010.
"BACI: International Trade Database at the Product-Level. The 1994-2007 Version,"
2010-23, CEPII research center.
- Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
- 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.
- 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.
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.