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:	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
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

Product Relatedness and Firm Exports in China

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