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A global view of productivity growth in China


Hsieh, Chang-Tai; Ossa, Ralph (2016). A global view of productivity growth in China. Journal of International Economics, 102:209-224.

Abstract

How does a country's productivity growth affect worldwide real incomes through international trade? In this paper, we take this classic question to the data by measuring the spillover effects of China's productivity growth. Using a quantitative trade model, we first estimate China's productivity growth between 1995 and 2007 and then isolate what would have happened to real incomes around the world if only China's productivity had changed. We find that the spillover effects are small for all countries in our sample, ranging from a cumulative real income loss of at most −0.2% to a cumulative real income gain of at most 0.2%.

Abstract

How does a country's productivity growth affect worldwide real incomes through international trade? In this paper, we take this classic question to the data by measuring the spillover effects of China's productivity growth. Using a quantitative trade model, we first estimate China's productivity growth between 1995 and 2007 and then isolate what would have happened to real incomes around the world if only China's productivity had changed. We find that the spillover effects are small for all countries in our sample, ranging from a cumulative real income loss of at most −0.2% to a cumulative real income gain of at most 0.2%.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Spillovers, productivity growth, China
Language:English
Date:September 2016
Deposited On:08 Mar 2017 16:03
Last Modified:19 Apr 2017 09:14
Publisher:Elsevier
ISSN:0022-1996
Publisher DOI:https://doi.org/10.1016/j.jinteco.2016.07.007

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