HOW MUCH DO EXPORTS CONTRIBUTE TO CHINA'S INCOME GROWTH?
It is a widespread belief that exports, in particular of ‘high-tech’ products, contribute much to China's income growth. This study addresses this issue by applying a structural decomposition analysis to input--output (I--O) data. We employ two extended I--O tables that distinguish processing trade from ordinary exports. The contribution of exports to the value-added growth from 2002 to 2007 is found to be overestimated by 32% when standard I--O tables are used rather than the extended I--O tables. Even more strikingly, the value-added growth that may be attributed to the exports of ‘high-tech’ telecommunication products is overestimated by no less than 63%. A serious overestimation of the contribution to income growth of certain products (such as high-tech products) sends out misleading signals to policymakers. When measured correctly, the true contribution appears to be substantially smaller than is generally believed to be.
Year of publication: |
2012
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Authors: | Pei, Jiansuo ; Oosterhaven, Jan ; Dietzenbacher, Erik |
Published in: |
Economic Systems Research. - Taylor & Francis Journals, ISSN 0953-5314. - Vol. 24.2012, 3, p. 275-297
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Publisher: |
Taylor & Francis Journals |
Saved in:
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