Domestic Value Added in Exports [electronic resource] Theory and Firm Evidence from China. Kee, Hiau Looi.

Kee, Hiau Looi
Other Title:
World Bank working papers.
Washington, D.C. : The World Bank, 2015.
Policy research working papers.
World Bank e-Library.
Government document
1 online resource (83 p.)
Local subjects:
Finance and financial sector development
Private sector development
Macroeconomics and economic growth
Water resources
Markets & market access
Water & industry
Economic theory & research
Currencies and exchange rates
Firm heterogeneity
Domestic value added
Value added trade
Global value chains
Trade liberalization
Fdi liberalization
System Details:
Mode of Access: World Wide Web.
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.
Kee, Hiau Looi
Tang, Heiwai
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Print Version: Kee, Hiau Looi Domestic Value Added in Exports: Theory and Firm Evidence from China
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