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Emerald Management Reviews
ISSN: 1474-6085
Online from: 1988
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The relative sophistication of Chinese exports
| Title: | The relative sophistication of Chinese exports |
|---|---|
| Author(s): | Schott P K |
| Journal: | Economic Policy, Jan 2008, Volume: 53 pp.5-48 (44 pages) |
| Issn: | 0266-4658 |
| Keywords: | China, Comparative Advantage, Competition, Exporting, International Trade, Pricing |
| Article type: | Research paper |
| Reference: | 37AD979 (Permanent URL) |
| Abstract: |
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. |
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