Product relatedness and firm exports in China

Sandra Poncet () and Felipe Starosta de Waldemar ()
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Felipe Starosta de Waldemar: RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We propose the first evaluation using micro-level data of the gains from the consistency of activities with a local comparative advantage. Using firm-level data from Chinese customs over the 2000-6 period, we investigate the relationship between the export performance of firms and how their products relate to local comparative advantage. Our key indicator measures the density of the links between a product and the local product space. Hence, it combines information on the intrinsic relatedness of a good with information on the local pattern of specialization. Our results indicate that exports grow faster for goods that have denser links with those currently produced in the firm's locality. The density of links between products seems to yield export-enhancing spillovers. However, we show that this positive effect of product relatedness on export performance is mainly limited to ordinary trade activities and domestic firms. It is also stronger for more productive firms, suggesting that spillover diffusion may be hindered by insufficient absorptive capacity.

Keywords: Chinese firms; Chinese customs; China; Export flux (search for similar items in EconPapers)
Date: 2014
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Published in World Bank Economic Review, 2014, pp.1-27. ⟨10.1093/wber/lht037⟩

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Related works:
Journal Article: Product Relatedness and Firm Exports in China (2015)
Working Paper: Product relatedness and firm exports in China (2014)
Working Paper: Product relatedness and firm exports in China (2012)
Working Paper: Product relatedness and firm exports in China (2012)
Working Paper: Product relatedness and firm exports in China (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01044982

DOI: 10.1093/wber/lht037

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