Foreign direct investment, processing trade, and the sophistication of China's exports

Bin Xu; Jiangyong Lu

doi:10.1016/j.chieco.2009.01.004

Foreign direct investment, processing trade, and the sophistication of China's exports

Bin Xu (First Author), Jiangyong Lu (Participant Author)

Economics

Peking Univ

Research output: Contribution to journal › Journal

90 Citations (Web of Science)

Abstract

China's export structure has shown a rapid shift towards more sophisticated industries. While some believe that this trend is a result of processing trade and foreign direct investment, the evidence is mixed. This paper examines variations in level of export sophistication across China's manufacturing industries. We find that an industry's level of export sophistication is positively related to the share of wholly foreign owned enterprises from OECD countries and the share of processing exports of foreign-invested enterprises, and negatively related to the share of processing exports of indigenous Chinese enterprises. Evidence from the relative export prices of Chinese goods, which measure within-product export sophistication, shows a similar pattern.

Original language	English
Pages (from-to)	425-439
Journal	China Economic Review
Volume	20
Issue number	3
DOIs	https://doi.org/10.1016/j.chieco.2009.01.004
Publication status	Published - 2009

Corresponding author email

xubin@ceibs.edu

Keywords

China
Foreign direct investment
Processing trade
Sophistication of exports

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ABDC-A
Scopus
SSCI

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Xu, B., & Lu, J. (2009). Foreign direct investment, processing trade, and the sophistication of China's exports. China Economic Review, 20(3), 425-439. https://doi.org/10.1016/j.chieco.2009.01.004

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Foreign direct investment, processing trade, and the sophistication of China's exports

Abstract

Corresponding author email

Keywords

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UN SDGs

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