Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/66701 
Year of Publication: 
2006
Citation: 
[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 33 [Issue:] 2 [Publisher:] Universidad de Chile, Departamento de Economía [Place:] Santiago de Chile [Year:] 2006 [Pages:] 117-139
Publisher: 
Universidad de Chile, Departamento de Economía, Santiago de Chile
Abstract: 
China's import penetration in Chilean markets is higher in unskilled-labor intensive sectors as predicted by traditional endowment-based theories of comparative advantage. However, there is also evidence of within-industry specialization. In particular, high-income countries receive higher prices for its products, and Chinese products are not only cheaper in comparison to the world average but also relative to countries with similar income per capita. These price differences cannot account for the depth and sectoral distribution of China's import penetration. The relative price of Chinese products have stayed relatively constant since the beginning of the 1990s, which means that factors other than price, like quality upgrading, productivity growth or the access of foreign direct investment are crucial to explain the Chinese import boom.
Subjects: 
import penetration
China
imports price
extensive margin
intensive margin
JEL: 
F1
F2
L11
Document Type: 
Article

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