Resumen
Two features of China's trade patterns suggest that elements beyond factor abundance explain its export performance. The high penetration in world markets of labor-intensive products has been accompanied by: (i) a high share in exports of productivity-advanced foreign-invested enterprises (FIEs) and (ii) a high penetration of FIEs in labor-intensive sectors. We show that FDI liberalization endogenously introduces Ricardian features to an otherwise standard endowment-based trade model, strengthening China's natural comparative advantage in labor-intensive products. We discuss how capital accumulation, productivity growth, rural-urban migration, incentives for foreign investment, and distortions in financial markets affect this bias.
Idioma original | Inglés |
---|---|
Páginas (desde-hasta) | 740-753 |
Número de páginas | 14 |
Publicación | Review of Development Economics |
Volumen | 13 |
N.º | 4 |
DOI | |
Estado | Publicada - 2009 |
Publicado de forma externa | Sí |