Gains from trade or from catching-up? Value creation and distribution in the era of China’s WTO accession

Giovanni Dosi, Maria Enrica Virgillito and Xiaodan Yu ()
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Xiaodan Yu: Scuola Superiore Sant’Anna

Eurasian Business Review, 2023, vol. 13, issue 1, No 5, 119-166

Abstract: Abstract In this article we focus on the role of exports in Chinese economic development in the era of WTO accession. We address a series of different, although connected, questions. First, do Chinese exporting and non-exporting firms differ in terms of their productivity performance and paid wages? Second, to what extent exporting and non-exporting firms have contributed to the process of convergence and catching-up? Third, does the productivity-wage pass-through differ between exporting and non-exporting firms? Overall our findings downplay the role of exporting firms as both carriers of labor productivity and wage growth for the Chinese economy. In this respect, “gains from catching-up” outweigh any “gain from trade”.

Keywords: Export; Wage; Productivity; Trade; Event studies (search for similar items in EconPapers)
JEL-codes: D24 F16 J31 L6 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s40821-022-00212-5

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