Electronics production upgrading: is China exceptional?

Assche, Ari Van; Gangnes, Byron

doi:10.1080/13504850701765101

Cited by 46 publications

(19 citation statements)

References 15 publications

(20 reference statements)

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“…5 Our finding of a relationship between export upgrading and economic growth which depends on whether capabilities are embedded in processing activities further confirms that distinguishing between processing and ordinary exporters is crucial for our understanding of trade performance and growth potential. This would also seem to confirm the claims that processing trade systematically upwardly distorts the 'true' level of Chinese export sophistication (Amiti and Freund, 2010;Yao, 2009;Van Assche and Gangnes, 2010).…”

Section: Introductionsupporting

confidence: 69%

Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness

2013

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Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available to domestic firms operating in ordinary trade is an important driver of economic growth.However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign firms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is key in order for capacity building and technology adoption to be growth enhancing.

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Section: Introductionsupporting

confidence: 69%

Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness

2013

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“…39 Even though it is highly specific in many ways, China provides a good illustration of the issues raised by the trends described above. Although the trend towards export diversification and sophistication experienced by Chinese firms may be largely attributed to processing activities (Naughton, 2007;Van Assche and Gangnes, 2010), the pattern of specialization of the Chinese economy is not based on equally sophisticated domestic technological capabilities (Yue and Hua, 2002;Schott, 2008;Amiti andFreund, 2012, Dai et al, 2016). As a result, the domestic content of China's manufacturing exports has remained remarkably low -40% on average between 2002 and 2007 according to Koopman et al (2008)'s estimations -, especially in the most sophisticated industries like electronics.…”

Section: Discussion Of the Policy Issuesmentioning

confidence: 99%

Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization

Lectard

Rougier

2018

World Development

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ww .gr e th a .f r Les pays en développement doivent-ils défier leur avantage comparatif? Distance à l'avantage comparatif, diversification et sophistication des exportations, et dynamique de la spécialisation Résumé: Depuis les années 1990, les pays en développement ont tenté de promouvoir la diversification et la sophistication des exportations, notamment en attirant l'IDE vertical et en soutenant l'émergence de nouvelles industries dont l'intensité factorielle est éloignée de la dotation du pays. Nous étudions si le fait de défier l'avantage comparatif a entraîné un panier d'exportation plus sophistiqué et diversifié dans un vaste panel de pays sur la période 1992-2012. Nous constatons que les pays en développement qui défient leur avantage comparatif ont tendance à exporter plus de biens manufacturés et à fabriquer des produits plus sophistiqués. En ce qui concerne la diversification des exportations, l'impact est hétérogène à travers les niveaux de développement: bien que défier l'avantage comparatif semble contribuer à diversifier les paniers d'exportation des pays à revenu intermédiaire et riches en ressources naturelles, ceci tend à concentrer ceux des économies à faible revenu. En outre, nous constatons que l'impact de la distance à l'avantage comparatif sur la transformation productive est fortement conditionné par la taille des stocks d'IDE et par la spécialisation du pays dans les tâches productives à plus faible valeur ajoutée des chaînes de valeur mondiales (GVC). Plus précisément, nos résultats suggèrent que défier l'avantage comparatif en attirant l'IDE peut être une stratégie dangereuse à long terme, car elle n'apporte qu'une industrialisation partielle et superficielle, les exportations manufacturières augmentant alors que la valeur ajoutée industrielle domestique diminue.

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“…4 They also find that this foreign content is higher in more sophisticated sectors, such as electronic devices and telecommunication equipment (about 80%). Yao (2009) argues that once China's processing-trade regime is taken into account, Chinese exports no longer look very different from those in other countries with similar levels of development, a point also made by Van Assche and Gangnes (2010). It is in addition underlined that the uneven distribution of income, and of exports, across China's provinces should be taken into consideration when establishing any "China-is-special" phenomenon.…”

Section: Introductionmentioning

confidence: 93%

Export sophistication and economic growth: Evidence from China

Jarreau

Poncet

2012

Journal of Development Economics

279

142

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International audienceWe consider the effect of export sophistication on economic performance by appealing to regional variation within one single country (China) over the 1997-2009 period. We find evidence in support of Hausmann, Hwang and Rodrik (2007), in that regions specializing in more sophisticated goods subsequently grow faster. We find substantial variation in export sophistication at the province and prefecture level, controlling for the level of development, and that this sophistication in turn drives growth. Our results suggest that these gains are limited to the ordinary export activities undertaken by domestic firms: no direct gains result from either processing trade activities or foreign firms, even though these are the main contributors to the global upgrading of China's exports. As such, the extent of assembly trade and foreign entities should be distinguished in order to measure the true movement in a country's technology and the contribution of exports to economic growth

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Electronics production upgrading: is China exceptional?

Cited by 46 publications

References 15 publications

Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness

Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness

Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization

Export sophistication and economic growth: Evidence from China

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