A1 - Sandra Poncet
A1 - Felipe Starosta de Waldemar
TI - Export upgrading and growth: the prerequisite of domestic embeddedness
IS - 2012-26
T3 - Working Papers
KW - Economic complexity
KW - export upgrading
KW - processing trade
KW - growth
N2 - 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 for 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 the key for capacity building and technology adoption to be growth enhancing.
ER -