China's leading position in high-tech exports is a myth created by outdated trade statistics, which are inconsistent with the trade based on global supply chains. Assembled high-tech products, made with imported key parts and components, accounted for 82% of China's high-tech exports. Current...

This paper examines the FDI-exchange rate nexus in the context of one FDI source and two host countries. It focuses on the effect of exchange rates on relative FDI inflows between the two host countries. The theoretical analysis shows explicitly that relative FDI inflows are a function of...

This paper investigates linkages among quot;reverse importsquot;, foreign direct investment, and exchange rates. As an example we have in mind the competition in the Japanese market of a Japanese multinational firm and a Chinese domestic firm. Products are differentiated based on Japanese...

This paper argues that relative exchange rates between the host countries of foreign direct investment affect their competition for FDI. Specifically, if the host country currency appreciates against the source country's currency more than that of its rival, FDI inflows of the host country will...

More and more American multinational corporations (MNCs) are outsourcing the production and assembly of their products to foreign companies. When they do so, they derive the largest share of their revenue from the intellectual property embedded in core technological innovation and brand names....

This study investigates the impacts of rising wages and the appreciation of the yuan on the structure of China's exports. China's exports are classified here as ordinary exports (OE) and two distinctive groups of processing exports, pure assembly exports (PAE) and mixed assembly exports (MAE)....

This paper argues that global value chains (GVCs) have functioned as a vehicle for “Made in China” products to enter international markets, especially the markets of high income countries. It identifies three spillover effects to Chinese firms participating in GVCs: brands, distribution...

We apply a direct approach to estimate domestic value added embedded in the People's Republic of China's (PRC) exports. The estimates suggest that the domestic value added of processing exports and processing high-tech exports gradually increased from 30% and 25%, to 44% and 45%, respectively,...

The global financial crisis and the recent growth slowdown in the People's Republic of China (PRC) have led to questions about the sustainability of the PRC's growth. The commonly used argument is that the PRC is too dependent on external demand and that it needs to rebalance its economy toward...

The global financial crisis and the recent growth slowdown in the People’s Republic of China (PRC) have led to questions about the sustainability of the PRC’s growth. The commonly used argument is that the PRC is too dependent on external demand and that it needs to rebalance its economy...