Who gains and who loses from China’s growth?

Emerging countries have been winning large market shares since the early 1990s. Among these, China stands out with the most remarkable performance: it almost tripled its world market share becoming a leading exporter, second only to EU 27. Products exported by China incorporate, however, a large share of foreign inputs. By 2007 one tenth of internationally traded products were shipped to China. These recent evolutions reveal the large and growing domestic market potential and explain the increasing attractiveness of the Chinese market to foreign producers. The present paper attempts to identify the countries that profit and suffer the most from the recent expansion of the Chinese market. I use an econometric shift-share methodology that permits to identify for each trade flow the share of growth arising from the capacity to target the products and markets with the highest increase in demand, and the share due exclusively to exporter's performance.


Issue Date:
2012
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/207990
Total Pages:
36
Series Statement:
12-03




 Record created 2017-04-01, last modified 2017-04-26

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