Weighing China’s export basket: The domestic content and technology intensity of Chinese exports

Richard Upward, Zheng Wang () and Jinghai Zheng

Journal of Comparative Economics, 2013, vol. 41, issue 2, 527-543

Abstract: In this paper we use new, detailed, and comprehensive linked firm-transaction data to measure the domestic content and technology intensity of Chinese exports over the period 2000–2007. We evaluate the extent of value-added in China’s exports, using a modification of a method proposed by Hummels et al. (2001) which takes into account the prevalence of processing firms. In addition, we provide new estimates of the skill-and technology-intensity of China’s exports. Our estimates of value-added suggest that the domestic content of China’s exports increased from only 53% to about 60% over the period 2003–2006. Our cross-firm analysis reveals that processing exporters have value-added shares approximately 50% lower than non-processing exporters, even after accounting for ownership, location, and industry. We also show that Chinese exports have become increasingly sophisticated, largely driven by skill and technology improvement within industries.

Keywords: Chinese exports; Domestic content; Vertical specialisation; Technology intensity (search for similar items in EconPapers)
JEL-codes: F14 O14 O53 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (135)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:41:y:2013:i:2:p:527-543

DOI: 10.1016/j.jce.2012.07.004

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