Product Relatedness and Firm Exports in China

This paper proposes the first evaluation using micro-level data of the gains from the consistency of activities with a local comparative advantage. Using firm-level data from Chinese customs over the 2000-6 period, the study investigates the relati...

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Main Authors: Poncet, Sandra, Starosta de Waldemar, Felipe
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
CD
GDP
Online Access:http://documents.worldbank.org/curated/en/2013/01/18435554/product-relatedness-firm-exports-china
http://hdl.handle.net/10986/16891
id okr-10986-16891
recordtype oai_dc
spelling okr-10986-168912021-04-23T14:03:32Z Product Relatedness and Firm Exports in China Poncet, Sandra Starosta de Waldemar, Felipe ABSORPTIVE CAPACITY AGGREGATE EXPORTS APPAREL ASSEMBLY AUTONOMY BENCHMARK BILATERAL TRADE BORDER TRADE CAPACITY BUILDING CAPACITY OF FIRMS CD COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGE INDEX COMPARATIVE ADVANTAGES COMPETITIVENESS CONSTRUCTION DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DOWNWARD BIAS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC REVIEW ECONOMIC STUDIES ECONOMIES OF SCALE ECONOMIES OF SCOPE ELASTICITY EMPIRICAL LITERATURE EMPIRICAL RESULTS EXPLANATORY VARIABLES EXPORT EXPORT DIVERSIFICATION EXPORT DYNAMICS EXPORT GROWTH EXPORT INTENSITY EXPORT MARKETS EXPORT PERFORMANCE EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT SHARE EXPORT SHARES EXPORT STRUCTURE EXPORT VALUE EXPORTERS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TECHNOLOGY FUEL GDP GLOBAL ECONOMY GROWTH ELASTICITY GROWTH RATE HETEROSKEDASTICITY INCOME INDIVIDUAL COUNTRIES INDUSTRIAL POLICY INTERNATIONAL TRADE KNOWLEDGE SPILLOVERS LOCAL AUTHORITIES MERCHANDISE NATURAL ENDOWMENTS NEGATIVE COEFFICIENT PATTERN OF SPECIALIZATION POLICY DISCUSSIONS POLICY PERSPECTIVE POLICY RESEARCH POLITICAL ECONOMY POSITIVE CORRELATION POSITIVE EFFECT POSITIVE IMPACT PRODUCTIVITY PRODUCTIVITY GROWTH REFERENCE RELATIVE DEMAND RELATIVE SUPPLY RIGHT-HAND SIDE SALES SIGNIFICANT EFFECT SIGNIFICANT NEGATIVE SKILLED WORKERS STRUCTURAL CHANGE SUBSTITUTE TECHNOLOGY TRANSFER TRADE COMPETITIVENESS TRADE DATA TRADE DEFICIT TRADE FLOWS TRADE LIBERALIZATION TRADE REGIME UPPER WORLD TRADE This paper proposes the first evaluation using micro-level data of the gains from the consistency of activities with a local comparative advantage. Using firm-level data from Chinese customs over the 2000-6 period, the study investigates the relationship between the export performance of firms and how their products relate to local comparative advantage. The key indicator measures the density of the links between a product and the local product space. Hence, it combines information on the intrinsic relatedness of a good with information on the local pattern of specialization. The results indicate that exports grow faster for goods that have denser links with those currently produced in the firm's locality. The density of links between products seems to yield export-enhancing spillovers. However, this positive effect of product relatedness on export performance is mainly limited to ordinary trade activities and domestic firms. It is also stronger for more productive firms, suggesting that spillover diffusion may be hindered by insufficient absorptive capacity. 2014-02-04T20:30:55Z 2014-02-04T20:30:55Z 2013-10 http://documents.worldbank.org/curated/en/2013/01/18435554/product-relatedness-firm-exports-china http://hdl.handle.net/10986/16891 English en_US Policy Research Working Paper;No. 6676 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ABSORPTIVE CAPACITY
AGGREGATE EXPORTS
APPAREL
ASSEMBLY
AUTONOMY
BENCHMARK
BILATERAL TRADE
BORDER TRADE
CAPACITY BUILDING
CAPACITY OF FIRMS
CD
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGE INDEX
COMPARATIVE ADVANTAGES
COMPETITIVENESS
CONSTRUCTION
DEPENDENT VARIABLE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT STRATEGIES
DOWNWARD BIAS
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICY
ECONOMIC RESEARCH
ECONOMIC REVIEW
ECONOMIC STUDIES
ECONOMIES OF SCALE
ECONOMIES OF SCOPE
ELASTICITY
EMPIRICAL LITERATURE
EMPIRICAL RESULTS
EXPLANATORY VARIABLES
EXPORT
EXPORT DIVERSIFICATION
EXPORT DYNAMICS
EXPORT GROWTH
EXPORT INTENSITY
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT SHARE
EXPORT SHARES
EXPORT STRUCTURE
EXPORT VALUE
EXPORTERS
EXPORTS
EXTERNALITIES
FOREIGN DIRECT INVESTMENT
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN TECHNOLOGY
FUEL
GDP
GLOBAL ECONOMY
GROWTH ELASTICITY
GROWTH RATE
HETEROSKEDASTICITY
INCOME
INDIVIDUAL COUNTRIES
INDUSTRIAL POLICY
INTERNATIONAL TRADE
KNOWLEDGE SPILLOVERS
LOCAL AUTHORITIES
MERCHANDISE
NATURAL ENDOWMENTS
NEGATIVE COEFFICIENT
PATTERN OF SPECIALIZATION
POLICY DISCUSSIONS
POLICY PERSPECTIVE
POLICY RESEARCH
POLITICAL ECONOMY
POSITIVE CORRELATION
POSITIVE EFFECT
POSITIVE IMPACT
PRODUCTIVITY
PRODUCTIVITY GROWTH
REFERENCE
RELATIVE DEMAND
RELATIVE SUPPLY
RIGHT-HAND SIDE
SALES
SIGNIFICANT EFFECT
SIGNIFICANT NEGATIVE
SKILLED WORKERS
STRUCTURAL CHANGE
SUBSTITUTE
TECHNOLOGY TRANSFER
TRADE COMPETITIVENESS
TRADE DATA
TRADE DEFICIT
TRADE FLOWS
TRADE LIBERALIZATION
TRADE REGIME
UPPER
WORLD TRADE
spellingShingle ABSORPTIVE CAPACITY
AGGREGATE EXPORTS
APPAREL
ASSEMBLY
AUTONOMY
BENCHMARK
BILATERAL TRADE
BORDER TRADE
CAPACITY BUILDING
CAPACITY OF FIRMS
CD
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGE INDEX
COMPARATIVE ADVANTAGES
COMPETITIVENESS
CONSTRUCTION
DEPENDENT VARIABLE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT STRATEGIES
DOWNWARD BIAS
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICY
ECONOMIC RESEARCH
ECONOMIC REVIEW
ECONOMIC STUDIES
ECONOMIES OF SCALE
ECONOMIES OF SCOPE
ELASTICITY
EMPIRICAL LITERATURE
EMPIRICAL RESULTS
EXPLANATORY VARIABLES
EXPORT
EXPORT DIVERSIFICATION
EXPORT DYNAMICS
EXPORT GROWTH
EXPORT INTENSITY
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT SHARE
EXPORT SHARES
EXPORT STRUCTURE
EXPORT VALUE
EXPORTERS
EXPORTS
EXTERNALITIES
FOREIGN DIRECT INVESTMENT
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN TECHNOLOGY
FUEL
GDP
GLOBAL ECONOMY
GROWTH ELASTICITY
GROWTH RATE
HETEROSKEDASTICITY
INCOME
INDIVIDUAL COUNTRIES
INDUSTRIAL POLICY
INTERNATIONAL TRADE
KNOWLEDGE SPILLOVERS
LOCAL AUTHORITIES
MERCHANDISE
NATURAL ENDOWMENTS
NEGATIVE COEFFICIENT
PATTERN OF SPECIALIZATION
POLICY DISCUSSIONS
POLICY PERSPECTIVE
POLICY RESEARCH
POLITICAL ECONOMY
POSITIVE CORRELATION
POSITIVE EFFECT
POSITIVE IMPACT
PRODUCTIVITY
PRODUCTIVITY GROWTH
REFERENCE
RELATIVE DEMAND
RELATIVE SUPPLY
RIGHT-HAND SIDE
SALES
SIGNIFICANT EFFECT
SIGNIFICANT NEGATIVE
SKILLED WORKERS
STRUCTURAL CHANGE
SUBSTITUTE
TECHNOLOGY TRANSFER
TRADE COMPETITIVENESS
TRADE DATA
TRADE DEFICIT
TRADE FLOWS
TRADE LIBERALIZATION
TRADE REGIME
UPPER
WORLD TRADE
Poncet, Sandra
Starosta de Waldemar, Felipe
Product Relatedness and Firm Exports in China
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper;No. 6676
description This paper proposes the first evaluation using micro-level data of the gains from the consistency of activities with a local comparative advantage. Using firm-level data from Chinese customs over the 2000-6 period, the study investigates the relationship between the export performance of firms and how their products relate to local comparative advantage. The key indicator measures the density of the links between a product and the local product space. Hence, it combines information on the intrinsic relatedness of a good with information on the local pattern of specialization. The results indicate that exports grow faster for goods that have denser links with those currently produced in the firm's locality. The density of links between products seems to yield export-enhancing spillovers. However, this positive effect of product relatedness on export performance is mainly limited to ordinary trade activities and domestic firms. It is also stronger for more productive firms, suggesting that spillover diffusion may be hindered by insufficient absorptive capacity.
format Publications & Research :: Policy Research Working Paper
author Poncet, Sandra
Starosta de Waldemar, Felipe
author_facet Poncet, Sandra
Starosta de Waldemar, Felipe
author_sort Poncet, Sandra
title Product Relatedness and Firm Exports in China
title_short Product Relatedness and Firm Exports in China
title_full Product Relatedness and Firm Exports in China
title_fullStr Product Relatedness and Firm Exports in China
title_full_unstemmed Product Relatedness and Firm Exports in China
title_sort product relatedness and firm exports in china
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2013/01/18435554/product-relatedness-firm-exports-china
http://hdl.handle.net/10986/16891
_version_ 1764434828608929792