Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269338 
Year of Publication: 
2012
Series/Report no.: 
FERDI Working Paper No. p57
Publisher: 
Fondation pour les études et recherches sur le développement international (FERDI), Clermont-Ferrand
Abstract: 
Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available to domestic firms operating in ordinary trade is an important driver of economic growth. However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign firms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is key in order for capacity building and technology adoption to be growth enhancing.
Subjects: 
Economic complexity
export upgrading
FDI
processing trade
growth
China
JEL: 
F1
O11
O14
O40
O53
R1
Document Type: 
Working Paper

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