Domestic Value Added in Exports: Theory and Firm Evidence from China
Hiau Looi Kee () and
American Economic Review, 2016, vol. 106, issue 6, 1402-36
China has defied the declining trend in domestic content in exports in many countries. This paper studies China's rising domestic content in exports using firm- and customs transaction-level data. The approach embraces firm heterogeneity and hence reduces aggregation bias. The study finds that the substitution of domestic for imported materials by individual processing exporters caused China's domestic content in exports to increase from 65 to 70 percent in the period 2000-2007. Such substitution was induced by the country's trade and investment liberalization, which deepened its engagement in global value chains and led to a greater variety of domestic materials becoming available at lower prices.
JEL-codes: F13 F14 L14 O19 O24 P31 P33 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20131687
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... YI-6nuIelpfD9O1aYqPB (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... QXR5dXRI4SztPAXnBGar (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... cZlgn5y2iNWY_HPcSUuP (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Domestic Value Added in Exports: Theory and Firm Evidence from China (2015)
Working Paper: Domestic value added in exports: theory and firm evidence from China (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:106:y:2016:i:6:p:1402-36
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().