Product Relatedness and Firm Exports in China

We propose 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, we investigate the relationship between the export performance of firms and how their products...

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Bibliographic Details
Main Authors:	Poncet, Sandra, Starosta de Waldemar, Felipe
Format:	Journal Article
Language:	en_US
Published:	Published by Oxford University Press on behalf of the World Bank 2017
Subjects:	PRODUCT SPACE DENSITY SPILLOVERS EXPORT COMPETITIVENESS EXPORT PERFORMANCE
Online Access:	http://hdl.handle.net/10986/27688

id	okr-10986-27688
recordtype	oai_dc
spelling	okr-10986-276882021-04-23T14:04:46Z Product Relatedness and Firm Exports in China Poncet, Sandra Starosta de Waldemar, Felipe PRODUCT SPACE DENSITY SPILLOVERS EXPORT COMPETITIVENESS EXPORT PERFORMANCE We propose 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, we investigate the relationship between the export performance of firms and how their products relate to local comparative advantage. Our 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. Our 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, we show that 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. 2017-08-09T19:51:09Z 2017-08-09T19:51:09Z 2015-09-29 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/27688 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article 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	en_US
topic	PRODUCT SPACE DENSITY SPILLOVERS EXPORT COMPETITIVENESS EXPORT PERFORMANCE
spellingShingle	PRODUCT SPACE DENSITY SPILLOVERS EXPORT COMPETITIVENESS EXPORT PERFORMANCE Poncet, Sandra Starosta de Waldemar, Felipe Product Relatedness and Firm Exports in China
geographic_facet	East Asia and Pacific China
description	We propose 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, we investigate the relationship between the export performance of firms and how their products relate to local comparative advantage. Our 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. Our 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, we show that 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	Journal Article
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	Published by Oxford University Press on behalf of the World Bank
publishDate	2017
url	http://hdl.handle.net/10986/27688
_version_	1764465895146520576

Product Relatedness and Firm Exports in China

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