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Export upgrading and growth: the prerequisite of domestic embeddedness

Sandra Poncet () and Felipe Starosta de Waldemar

Working Papers from CEPII research center

Abstract: Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available for domestic firms operating in ordinary trade is an important driver of economic growth. However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign firms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is the key for capacity building and technology adoption to be growth enhancing.

Keywords: Economic complexity; export upgrading; FDI; processing trade; growth; China (search for similar items in EconPapers)
JEL-codes: F10 O11 O14 O40 O53 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-fdg, nep-int and nep-tra
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Related works:
Journal Article: Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness (2013) Downloads
Working Paper: Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness (2013)
Working Paper: Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness (2013)
Working Paper: Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness (2013)
Working Paper: Export upgrading and growth: the prerequisite of domestic embeddedness (2012)
Working Paper: Export upgrading and growth: the prerequisite of domestic embeddedness (2012) Downloads
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