Online from: 1988
|Title:||The relative sophistication of Chinese exports|
|Author(s):||Schott P K|
|Journal:||Economic Policy, Jan 2008, Volume: 53 pp.5-48 (44 pages)|
|Keywords:||China, Comparative Advantage, Competition, Exporting, International Trade, Pricing|
|Article type:||Research paper|
|Reference:||37AD979 (Permanent URL)|
Design/methodology/approach - Identifies the relative endowments of China under Heckscher-Ohlin, then traces the growing diversity of its exports and their overlap with OECD products. Takes price as a proxy for quality.
Findings - Finds that Chinese exports substitute for the low-quality, low-skill products of industrial countries, which then specialize in high qualiy products instead, raising national welfare.
Research limitations/implications - Comments that the negative EU trade balance with China is half that of the USA. Notes that China imports high levels of foreign high level components, to assemble for export; while a high proportion of Chinese exporters are foreign-owned firms. Adds that the exchange rate is important.
Originality/value - Presents a rare, informed view of Chinese exports and their competitiveness.