Trade Openness and China's Economic Development: 1st Edition (Hardback) book cover

Trade Openness and China's Economic Development

1st Edition

By Miaojie Yu


398 pages

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Hardback: 9780367441845
pub: 2019-12-17
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With the expansion of globalization, international trade has played an increasingly significant role, especially for developing countries. As the largest developing country, China has made a lot of efforts to integrate to the global market since its Open and Reform Policy in 1978 and become the second largest economy in world. So, what is the effect of China’s trade-oriented strategy for the country and the world? How did it improve the country’s economic development? These are some critical questions this book discusses.

This book utilizes classic Western economic models to examine how China’s openness policies have affected the manufacturing upgrading and economic development of the country. A large amount of micro-level empirical evidence is added to support the conclusion.

Scholars and students in economics and business will benefit from this book. Also, it will appeal to readers interested in policy making and Chinese studies.

Table of Contents

PREFACE PART I: Macro Perspective 1. Industrial Structural Upgrading and Poverty Reduction in China 1.1 Introduction 1.2 China’s Economy before the Reform 1.3 China’s Industrial Growth and Structural Upgrading 1.4 How China Realized Structural Transformation and Industrial Upgrading 1.5 Effect of Structural Transformation on Employment and Poverty Reduction 1.6 Lessons to be Learned from China 1.7 Conclusions and Policy Suggestions 2. Labour, Demography, and the Export-oriented Growth Model in China 2.1 Introduction 2.2 Surplus Labour, Urbanisation, and Demographic Transition 2.3 Demography and China’s Economic Model 2.4. Concluding Remarks 3. China’s manufacturing value chain ascent to date 3.1 Introduction 3.2 Performance of China’s manufacturing sector 3.3 Data and methodology 3.4 Manufacturing productivity growth 3.5 Theoretical implications 3.6 Conclusion PART II: Micro Evidence 4. China’s Processing Trade: A firm-level analysis 4.1 Introduction 4.2 Policy Setting to Promote Processing Trade 4.3 The Characteristics of Processing Trade 4.4 Ownership of Processing Importing Firms 4.5 Firm-Trade Micro Data and Measure of Productivity 4.6 Matching Transaction-Level Trade Data and Firm-Level Production Data 4.7 Productivity for Processing Firms 4.8 Conclusions 5. Unexceptional Exporter Performance in China? The Role of Processing Trade 5.1 Introduction 5.2 China's Export-Processing Regime 5.3 Data 5.4 Stylized Facts on Processing Exporters 5.5 Possible Explanations for the Performance of Processing Exporters 5.6 Alternative Explanations 5.7 Further Discussion: Dynamics of Processing Status 5.8 Concluding Remarks 6. Processing Trade, Tariff Reductions, and Firm Productivity: Evidence from Chinese Firms 6.1 Introduction 6.2 Special Tariff Treatment on Processing Trade 6.3 Estimation Results 6.4 Concluding Remarks 7. Trade Liberalization, Product Complexity, and Productivity Improvement: Evidence from Chinese Firms 7.1 Introduction 7.2 China's Trade Liberalization 7.3 The Methodology 7.4 Data 7.5 Empirical Results 7.6 Concluding Remarks 8. Processing Trade, Export Intensity, and Input Trade Liberalization: Evidence from Chinese Firms 8.1 Introduction 8.2 Data 8.3 Measures and Empirics 8.4 Empirical Results 8.5 Concluding Remarks PART III: Channels and Mechanism 9 Exports and Credit Constraints under Incomplete Information: Theory and Evidence from China 9.1 Introduction 9.2 Incentive-Compatible Loans 9.3 Estimating Equation and Data 9.4 Estimation Results 9.5 Conclusions 10 Input Trade Liveralization, Processing Firms and Firm R&D: Empirical Evidence from Chinese Firms 10.1 Introduction 10.2 Data 10.3 Empirics and Results 10.4 Concluding Remarks 11. Imports, Product Complexity and Firm Productivity 11.1 Introduction 11.2 Stylized Facts and Literature Review 11.3 Data 11.4 Measures, Empirics and the Results 11.5. Concluding Remarks 12. Firm R&D, Absorptive Capacity and Learning by Exporting:Firm-Level Evidence from China 12.1 Introduction 12.2 Data description 12.3 Estimating the post-entry productivity gain 12.4 The role of pre-export R&D in generating post-entry productivity gains 12.5 Robustness and further discussion 12.6 Conclusion PART IV International Comparison 13. China and India: Trends in Trade over the Last Decade 13.1 Introduction 13.2 Trade Pattern of China and India 13.3 Channels of Exports Growth 13.4 Policy Settings 13.5 Conclusion 14. The Impact of China’s Trade on ASEAN’s Trade 14.1 Introduction 14.2 Literature Review 14.3 Data and Measures 14.4 Estimation Results 14.5 Robust Checks 14.6 Concluding Remarks References Index Appendix A: Matching Production and Trade Data Sets Appendix B: The Augmented Olley-Pakes TFP Measures 2.1 TFPOP used in the full-sample data set 2.2 TFPOP1 with separate estimates for processing and non-processing firms 2.3 TFPOP2 with Learning from Processing Appendix C: Derivation of Domar-Aggregation Productivity Appendix D: Estimate TFP by Olley-Pakes (1996)

About the Author

Miaojie YU is the Boya Chair Professor of Peking University and Deputy Dean of National School of Development, Peking University. His research interests include international trade and Chinese economy. His has published more than 100 peer-reviewed papers and won the prize of Royal Economic Society (2015).

About the Series

China Perspectives

The China Perspectives series focuses on translating and publishing works by leading Chinese scholars, writing about both global topics and China-related themes. It covers Humanities & Social Sciences, Education, Media and Psychology, as well as many interdisciplinary themes.

This is the first time that any of these books have been translated into English for international readers. The series aims to put forward a Chinese perspective, give insights into cutting-edge academic thinking in China, and inspire researchers globally.


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Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Commercial Policy
BUSINESS & ECONOMICS / Development / Economic Development
BUSINESS & ECONOMICS / Economics / General