Domestic value added in exports: theory and firm evidence from China

Hiau Looi Kee, Heiwai Tang, Hiau Looi Kee and Heiwai Tang
Authors registered in the RePEc Author Service: Heiwai Tang and Hiau Looi Kee ()

No 7491, Policy Research Working Paper Series from The World Bank

Abstract: China has defied the declining trend in domestic content in exports in many countries. This paper studies China?s rising domestic content in exports using firm- and customs transaction-level data. The approach embraces firm heterogeneity and hence reduces aggregation bias. The study finds that the substitution of domestic for imported materials by individual processing exporters caused China?s domestic content in exports to increase from 65 to 70 percent in 2000?2007. Such substitution was induced by the country?s trade and investment liberalization, which deepened its engagement in global value chains and led to a greater variety of domestic materials becoming available at lower prices.

Keywords: International Trade and Trade Rules; Transport and Trade Logistics; Industrial and Consumer Services and Products; Food&Beverage Industry; Plastics&Rubber Industry; Construction Industry; General Manufacturing; Common Carriers Industry; Business Cycles and Stabilization Policies; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Labor Markets (search for similar items in EconPapers)
Date: 2015-11-13
New Economics Papers: this item is included in nep-cna, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Domestic Value Added in Exports: Theory and Firm Evidence from China (2016)
Working Paper: Domestic Value Added in Exports: Theory and Firm Evidence from China (2015)
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