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Export upgrading and growth in China: the prerequisite of domestic embeddedness

Sandra Poncet () and Felipe Starosta
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Felipe Starosta: UP1 - Université Panthéon-Sorbonne

PSE - G-MOND WORKING PAPERS from HAL

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 to domestic _rms 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 _rms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is key in order 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)
New Economics Papers: this item is included in nep-int
Date: 2013-03
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00960684
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