Title: How Much of Chinese Exports is Really Made In China?

Abstract: As China's export juggernaut employs many imported inputs, there are many policy questions for which it is crucial to know the extent of domestic and foreign value added in its exports. The best known approach - the concept of "vertical specialization" proposed by Hummels, Ishii and Yi (2001) - is not appropriate for countries that engage actively in tariff/tax-favored processing exports such as China, Mexico, and Vietnam. We develop a general formula for computing domestic and foreign contents when processing exports are pervasive…

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Publication ID: 88

Category Description: Indicators for International Trade and Economic Globalization

Publication Type: Paper

Inistitute: NBER

Year: 2008

Month: June

Sub Title: Assessing Domestic Value-Added When Processing Trade is Pervasive

Author 1: Robert Koopman

Author 2: Zhi Wang

Author 3:Shang-Jin Wei

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Link: http://www.nber.org/papers/w14109

Tags: China , domestic content , foreign content , processing exports ,

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