In less than three decades, China has grown from having a negligible role in world trade to being one of the world’s largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both the recipient and sources of investments. Not surprisingly, China’s economic dynamism and rise has generated considerable attention and concern, whether in the United States or elsewhere. While some analysts have warned of the potential pitfalls of the rise of China, focusing on the loss of jobs for example, others have highlighted the benefits of less expensive goods and services along with the market and investment opportunities. Bringing together a top-notch group of contributors, China’s Growing Role in World Trade undertakes an empirical investigation of the positive and negative effects of China’s increasing role in world trade. Providing detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment, this volume’s careful examination of micro data in light of established economic theories clarifies a number of misconceptions, overturns some conventional wisdom, and documents data patterns that enhance our understanding of issues related to China’s trade.
