Its export dynamism is revealed in a sharp move into electronics and

agricul=ur., appar.l, a7d =.x=il.s i7=o .l.c- =ro7ics a7d mac1i7.ry, C1i7a 9s o?.rall .xpor= s=ruc=ur. 1as b.com.<br><br> mor. sp.cializ.d, 7o= mor. di?.rsi/i.d.<br><br> A7d C1i7a 9s growi7g sop1is=ica=io7 o/ i=s .xpor=s is larg.ly =1a7ks =o pro- c.ssi7g =rad. 4=1. prac=ic. o/ ass.mbli7g du=y-/r..<br><br> i7=.rm.- dia=. i7pu=s. Reallocating across sectors As a /irs= s=.p, w.<br><br> compar. a s7aps1o= o/ C1i7a 9s .xpor= s.c=or i7 1992 wi=1 o7. /rom 2005 by .xami7i7g 1ow =1.<br><br> composi=io7 o/ i=s .xpor=s 1as c1a7g.d. W. /i7d =1a= i= 1as u7d.rgo7.<br><br> a drama=ic =ra7s/orma=io7 si7c. 1992. t1.r.<br><br> 1as b..7 a sig7i/ica7= d.cli7. i7 =1. s1ar.<br><br> o/ agricul=ur. a7d so/= ma7u/ac=ur.s, suc1 as =.x=il.s a7d appar.l, wi=1 growi7g s1ar.s i7 1ard ma7u/ac=ur.s, suc1 as co7sum.r .l.c=ro7ics, applia7c.s, a7d compu=.rs. China 9s Export Boom Its export dynamism is revealed in a sharp move into electronics and machinery Mary Amiti and Caroline Freund The share o 5 consumer electronics in China 9s exports has grown since 1992.<br><br> Br.aki7g i= dow7 /ur=1.r, w. =ak. a look a= c1a7g.s within =1.<br><br> ma7u/ac=ur- i7g s.c=or. I7 par=icular, w. .xami7.<br><br> 1ow =rad. s1ar.s 1a?. adjus=.d i7 all major s.c=ors, w1ic1 =og.=1.r compris.<br><br> abou= 70 p.rc.7= o/ C1i7a 9s ma7u/ac=uri7g .xpor=s. W. /i7d =1a= =1.r.<br><br> is a 7o=abl. mo?. ou= o/ =.x=il.s, appar.l, /oo=w.ar, a7d =oys a7d i7=o o//ic.<br><br> mac1i7.s, .l.c- =rical mac1i7.ry, a7d =.l.commu7ica- =io7s (s.. C1ar= 1). Getting more sophisticated Do.s =1is mo?.<br><br> i7=o .l.c=ro7ics a7d =.l.commu7ica=io7s m.a7 =1a= C1i7a 9s ma7u/ac=uri7g .xpor=s 1a?. b.com. mor.<br><br> skill i7=.7si?.? O?.r =1. pas= /.w y.ars, s.?.ral s=udi.s (Rodrik, 2006; Sc1o==, 2006) 1a?.<br><br> 1ig1lig1=.d =1. surprisi7g sop1is=ica=io7 o/ C1i7a 9s .xpor=s, sugg.s=i7g =1a= =1.y =.7d =o look a lo= mor. lik.<br><br> i7dus=rial cou7=ry .xpor=s =1a7 would b. .xp.c=.d gi?.7 C1i7a 9s i7com. l.?.l.<br><br> t1. sop1is=ica=io7 o/ C1i7a 9s .xpor=s i7 combi7a=io7 wi=1 =1. cou7=ry 9s robus= i7com.<br><br> grow=1 l.ads Rodrik =o =1. co7clusio7 =1a= w1a= a cou7=ry .xpor=s ma==.rs /or i=s /u=ur. grow=1.<br><br> t1. id.a is =1a= produc- i7g 1ig1-produc=i?i=y goods 1as gr.a=.r grow=1 b.7./i=s =1a7 produci7g o=1.r goods 4compu=.r c1ips ar. b.==.r =1a7 po=a=o c1ips.<br><br> to s.. w1.=1.r =1. skill co7=.7= o/ C1i7a 9s .xpor= grow=1 1as i7cr.as.d o?.r =1.<br><br> pas= 15 y.ars, w. look a= =1. s1ar.<br><br> o/ .xpor= produc=s =1a= ar. mid =o 1ig1 skill 4d./i7.d as produc=s =1a= ar. ra7k.d abo?.<br><br> =1. bo==om 20 p.rc.7= i7 =.rms o/ skill i7=.7si=y. B.caus.<br><br> i7dus=ry skill-l.?.l da=a /or C1i7a w.r. u7a?ailabl., w. bas.<br><br> =1. skill i7=.7si=y ra7ki7g o7 i7/orma=io7 /rom I7do7.sia 4a7o=1.r .m.rgi7g mark.= cou7=ry =1a= is lik.ly =o 1a?. similar =.c17ologi.s.<br><br> (W. also us.d U.S. da=a o7 skill ra7ki7gs a7d =1.<br><br> r.sul=s ar. 7.arly id.7=ical.) W. /i7d =1a=, i7 1992, 45 p.rc.7= o/ .xpor=s w.r.<br><br> i7 =1.s. mid- =o 1ig1-skill produc=s, bu= by 2005, =1. .xpor= s1ar.<br><br> o/ =1.s. i7dus=ri.s 1ad ris.7 =o 68 p.rc.7= (s.. C1ar= 2, l./= bars).<br><br> Bu=, gi?.7 =1. larg. s1ar.<br><br> o/ proc.ssi7g =rad. i7 C1i7a, a7 i7cr.as. i7 =1.<br><br> skill co7=.7= o/ C1i7a 9s .xpor=s could b. du. =o C1i7a impor=i7g i7=.rm.dia=.<br><br> i7pu=s wi=1 1ig1.r skill co7- =.7= =1a= i= =1.7 ass.mbl.s /or .xpor=. I7d..d, w1.7 w. .xclud.<br><br> proc.ssi7g =rad. (s.. C1ar= 2, rig1= bars), =1.<br><br> i7cr.asi7g s1ar. o/ =rad. i7 mid- a7d 1ig1-skill i7dus=ri.s is muc1 small.r.<br><br> t1is r.sul= is .?.7 s=ro7g.r a= 1ig1.r skill l.?.ls, wi=1 proc.ssi7g =rad. accou7=i7g /or =1. .7=ir.<br><br> i7cr.as. i7 =1. s1ar.<br><br> o/ =rad. i7 1ig1-skill i7dus=ri.s. W.<br><br> also .xplor. c1a7g.s i7 =1. pa==.r7 o/ C1i7a 9s impor=.d i7pu=s =o s..<br><br> i/ =1. i7cr.as.d skill co7=.7= o/ pro- c.ssi7g .xpor=s is comi7g /rom =1. /or.ig7 or =1.<br><br> dom.s=ic s=ag. o/ produc=io7. Compari7g =1.<br><br> c1a7g. i7 =1. skill co7- =.7= o/ impor=.d ma7u/ac=uri7g i7pu=s /or proc.ssi7g =rad.<br><br> wi=1 =1. c1a7g. i7 =1.<br><br> skill co7=.7= o/ impor=.d i7pu=s /or 7o7proc.ssi7g =rad., w. /i7d a muc1 larg.r i7cr.as. i7 =1.<br><br> skill co7=.7= o/ proc.ss.d impor=s. t1. r.sul=s imply =1a= =1.<br><br> i7cr.as. i7 skill co7=.7= i7 C1i7a 9s .xpor=s is lik.ly b.caus. o/ =1.<br><br> i7cr.as. i7 =1. skill co7=.7= o/ impor=.d i7pu=s .mb.d- d.d i7 =1.s.<br><br> .xpor=s. Becoming more specialized I7 r.c.7= y.ars, ma7y go?.r7m.7=s 1a?. b.gu7 promo=i7g a mor.<br><br> di?.rsi/i.d .xpor= s=ruc=ur. i7 1op.s o/ o//s.==i7g po=.7- =ial 7.ga=i?. s1ocks i7 major s.c=ors.<br><br> t1is approac1 picks up Finance & Development September 2007 39 Source: China Customs, Beijing. Note: A sector is defined as major if its share of total trade is above 3 percent in 1992 and/or 2005. Major sectors account for about 70 percent of manufacturing exports.<br><br> Chart 1 Toward electronics exports Between 1992 and 2005, the makeup of Chinese manufacturing exports moved toward high technology. (percent of manufacturing exports) 0 10 20 30 1992 2005 Textiles Apparel Footwear Miscellaneous manufacturing Metals Telecommunications Industrial machinery Office machines Electronic machinery Source: China Customs, Beijing. Chart 2 Increasing skill content Much of the higher skill content of China 9s exports arises from imported inputs with higher skill content.<br><br> (share of exports from mid- to high-skill industries; percent) 0 20 40 60 80 1992 2005 All goods Excluding processing trade o7 =1. =1i7ki7g o/ .co7omis=s suc1 as hausma77 a7d Rodrik (2003), w1o argu. =1a= i7 =1.<br><br> .arly s=ag. o/ d.?.lopm.7=, mor. .7=r.pr.7.urs1ip a7d po=.7=ially gr.a=.r di?.rsi/ica=io7 may 1.lp produc.rs id.7=i/y a7d .xpa7d produc=io7 o/ 7.w produc=s i7 w1ic1 =1.y ar.<br><br> globally comp.=i=i?.. Similarly, Imbs a7d Wacziarg (2003) /i7d =1a= gr.a=.r di?.rsi/ica=io7 o/ produc=io7 1as go7. 1a7d i7 1a7d wi=1 i7com.<br><br> risi7g /rom low l.?.ls, sugg.s=i7g i= could b. a7 impor=a7= s=ag. o/ grow=1.<br><br> Bu= =radi=io7al =1.ory 1ig1lig1=s .71a7c.d sp.- cializa=io7 as =1. way =o b.7./i= /rom =rad.: i/ .ac1 cou7=ry .xpor=s goods i7 w1ic1 i= 1as a compara=i?. cos= ad?a7=ag., world ou=pu= a7d w.l/ar.<br><br> s1ould ris.. to s.. w1.=1.r C1i7a 1as mo?.d i7 =1.<br><br> dir.c=io7 o/ gr.a=.r sp.cializa=io7 or di?.rsi/ica=io7, w. look a= =1. dis=ribu=io7 o/ .xpor=s o?.r =im..<br><br> W. /i7d =1a= d.spi=. a7 i7cr.as.<br><br> i7 C1i7a 9s =o=al 7umb.r o/ .xpor= produc=s, =1. d.gr.. o/ sp.cializa=io7 1as i7cr.as.d slig1=ly.<br><br> t1. i7cr.as. is .sp.cially 7o=abl.<br><br> i7 =1. =op-ra7k.d produc=s. t1.<br><br> =op 10 .xpor= produc=s 7ow accou7= /or 7.arly 25 p.rc.7= o/ .xpor= ?alu., w1.r.as =1. =op 10 i7 1992 accou7=.d /or jus= 10 p.rc.7= o/ .xpor= ?alu.. Similarly, =1.<br><br> =op 100 produc=s accou7= /or 54 p.rc.7= o/ =rad. compar.d wi=1 45 p.rc.7= i7 1992. t1.s.<br><br> r.sul=s imply =1a=, i/ a7y=1i7g, i= is i7cr.as.d sp.cializa=io7 =1a= 1as co7=ribu=.d =o .xpor= grow=1, co7- sis=.7= wi=1 r.c.7= work by di Gio?a77i a7d L.?c1.7ko (2007), w1ic1 /i7ds =1a= i7cr.as.d =rad. is accompa7i.d by sp.cializa=io7 i7 a larg. cross s.c=io7 o/ cou7=ri.s.<br><br> Favoring existing products Is C1i7a .xpor=i7g 7.w produc=s? R.c.7= r.s.arc1 s1ows a s=ro7g corr.la=io7 b.=w..7 =1. 7umb.r o/ .xpor= produc=s a7d i7com.<br><br> l.?.ls i7 cross-cou7=ry da=a (humm.ls a7d Kl.7ow, 2005). t1. .?id.7c.<br><br> sugg.s=s =1a= i7com. grow=1 l.ads =o =1. d.?.lopm.7= o/ 7.w ?ari.=i.s.<br><br> t1is is co7sis - =.7= wi=1 7.w =rad. =1.ory, w1ic1 s1ows =1a= =1. 7umb.r o/ goods produc.d i7 a7 .co7omy i7cr.as.s wi=1 =1.<br><br> siz. o/ =1. .co7omy.<br><br> I7 addi=io7, grow=1 i7 7.w produc= ?ari- .=i.s is b.7./icial /or .xpor=.rs b.caus. i= will lik.ly o//s.= som. o/ =1.<br><br> dow7ward pr.ssur. o7 .xpor= pric.s /rom a7 i7cr.as.d world supply o/ goods. I7 co7=ras=, =radi=io7al =1.ory o7ly allows /or a7 .xpa7sio7 o/ .xis=i7g .xpor=s as i7com.<br><br> .xpa7ds. to .xplor. =1.<br><br> impor=a7c. o/ 7.w produc=s, w. d.compos.<br><br> C1i7a 9s .xpor= grow=1 /rom 1992 =o 2005 usi7g i7=.r7a=io7al produc= cod.s, =1. mos= d.=ail.d l.?.l o/ disaggr.ga=io7 =1a= is comparabl. o?.r =im..<br><br> B.caus. =1.s. da=a ar.<br><br> =oo aggr.- ga=.d =o allow .7=ir.ly 7.w produc=s =o b. id.7=i/i.d 4by 1992, C1i7a was .xpor=i7g i7 mor. =1a7 90 p.rc.7= o/ =1.s.<br><br> ca=.gori.s 4w. spli= .xpor=s i7=o d.cil.s by ?alu. i7 1992 a7d calcula=.<br><br> =1.ir s1ar. o/ .xpor=s i7 2005 (as i7 K.1o. a7d Ru1l, 2003).<br><br> I/ .xpor= grow=1 aros. mai7ly /rom 7.w produc= ?ari.=i.s, =1.r. would b.<br><br> rapid grow=1 i7 =1. bo==om d.cil.s, w1.r. =rad.<br><br> was 7.gligibl. i7 1992. t1.<br><br> da=a r.?.al =1a= =1. ca=.gori.s =1a= accou7=.d /or =1. bo==om 20 p.rc.7= o/ =rad.<br><br> by ?alu. mor. =1a7 doubl.d i7 15 y.ars, w1.r.as =1.<br><br> ca=.go- ri.s i7 =1. o=1.r d.cil.s co7=rac=.d or r.mai7.d co7s=a7= (s.. C1ar= 3, =op pa7.l).<br><br> A k.y co7c.r7 i7 usi7g =1is =yp. o/ calcula=io7 =o ass.ss =1. impor=a7c.<br><br> o/ 7.w .xpor= ?ari.=i.s is =1a= .xpor=s =.7d =o b. 1ig1ly sk.w.d 4=1. small.s= =wo d.cil.s accou7= /or =1.<br><br> ?as= majori=y o/ produc= ca=.gori.s, a7d =1us i= is 7a=ural =o .xp.c= =1.s. =wo d.cil.s =o .x1ibi= 1ig1 grow=1. For =1a= r.aso7, w.<br><br> .?alua=. =1. r.alloca=io7 i7 mor.<br><br> d.=ail by di?idi7g .xpor=s i7=o d.cil.s accordi7g =o =1. number o/ ca=.gori.s o/ =rad. i7 1992.<br><br> For .xampl., =1. =.7=1 d.cil. is =1.<br><br> =op 10 p.rc.7= o/ produc= ca=.gori.s w1.7 produc=s ar. ra7k.d by ?alu.. t1.<br><br> d.cli7. i7 =1. s1ar.<br><br> o/ =1. =op d.cil. s1ows =1a= =1.r.<br><br> was a sizabl. r.alloca=io7 o/ =rad., bu= i= was 7o= =1. bo==om 50 p.rc.7= o/ produc=s =1a= gai7.d.<br><br> O?.r 80 p.rc.7= o/ =1. d.cli7. i7 =1.<br><br> =rad. s1ar. o/ =1.<br><br> =op d.cil. was accou7=.d /or by a7 i7cr.as. i7 =1.<br><br> =rad. s1ar. o/ =1.<br><br> /our d.cil.s jus= b.low =1. =op (s.. C1ar= 3, bo==om pa7.l).<br><br> I7 sum, =1. r.sul=s imply =1a= =1.r. was a sig7i/ica7= r.ori.7=a=io7 i7 .xpor=s =o prod- uc=s =1a= w.r.<br><br> i7 =1. bo==om 20 p.rc.7= by ?alu. bu= i7 =1.<br><br> mid =o 1ig1 ra7g. by produc= ra7k. W.<br><br> also p.r/orm mor. d.=ail.d a7alys.s usi7g =ari// li7. da=a /rom =1.<br><br> U7i=.d S=a=.s, w1ic1 ar. /ar mor. disaggr.- ga=.d, wi=1 o?.r 16,000 produc= cod.s.<br><br> Our r.sul=s s1ow =1a= =1. majori=y o/ grow=1 4a= l.as= 80 p.rc.7= 4s=.mm.d /rom .xis=i7g produc=s. t1is impli.s =1a= .xpor= .xpa7sio7 was dri?.7 by goods =1a= w.r.<br><br> alr.ady b.i7g .xpor=.d i7 1992. 40 Finance & Development September 2007 Source: China Customs, Beijing. Note: HS 6-digit data, containing more than 5,000 product codes.<br><br> Decile by value, 1992 Chart 3 Growth in new goods Goods in the bottom 20 percent of trade show the most growth . . .<br><br> (share of total value in 2005, percent) 0 5 10 15 20 25 10 9 8 7 6 5 4 3 2 1 Decile by number of products, 1992 . . .<br><br> but the reshuffling of exports during the expansion occurred mainly in the middle- and top-ranked products. (share of total value, percent) Share of total value, 1992 Share of total value, 2005 0 20 40 60 80 10 9 8 7 6 5 4 3 2 1 Declining export prices As C1i7a i7cr.as.s i=s supply o/ goods o7 world mark.=s, =1is is lik.ly =o pu= dow7ward pr.ssur. o7 world pric.s o/ =1.s.<br><br> goods a7d =1us l.ad =o a d.=.riora=io7 i7 C1i7a 9s =.rms o/ =rad.. Si7c. w.<br><br> /i7d =1a= mos= o/ C1i7a 9s .xpor= grow=1 is /rom .xis=i7g goods, =1is is .sp.cially lik.ly =o b. a7 issu.. Produc= di//.r.7=ia=io7 could l.ss.7 pric.<br><br> .//.c=s i/ 7.w prod- uc=s w.r. 7o= good subs=i=u=.s /or .xis=i7g goods. taki7g =1.<br><br> subs.= o/ goods =1a= C1i7a .xpor=.d =o =1. U7i=.d S=a=.s /rom 1997 =o 2005 (/or w1ic1 r.liabl. pric.<br><br> da=a ar. a?ailabl.), w. co7s=ruc= a7 a?.rag.<br><br> .xpor= pric. i7d.x =1a= is a w.ig1=.d sum o/ =1. grow=1 ra=.s o/ =1.<br><br> pric.s o/ =1. ?arious produc=s, w1.r. =1.<br><br> w.ig1=s ar. =1. produc=s 9 s1ar.s i7 =o=al ?alu..<br><br> W. /i7d =1a= =1. .xpor= pric.<br><br> i7d.x /or C1i7a o?.r =1is p.riod is 0.87, i7dica=i7g a /all o/ 13 p.r- c.7= i7 curr.7= U.S. dollars. I7 co7=ras=, =1.<br><br> pric. i7d.x /or .xpor=s o/ =1.s. sam.<br><br> produc=s /rom =1. r.s= o/ =1. world =o =1.<br><br> U7i=.d S=a=.s is 1.06, i7dica=i7g a 6 p.rc.7= i7cr.as. i7 pric.s. t1us, i= app.ars =1a= =1.<br><br> rapid .xpor= grow=1 1as b..7 associa=.d wi=1 a d.cli7. i7 C1i7a 9s .xpor= pric.s o?.r =1. p.riod.<br><br> t1. .xpor= pric. d.cli7.<br><br> i7 C1i7a is co7sis=.7= wi=1 a 7.ga=i?. =.rms o/ =rad. .//.c=, wi=1 i7cr.as.d .xpor=s pus1- i7g dow7 .xpor= pric.s.<br><br> how.?.r, i= could also b. r.la=.d =o impro?.d produc=i?i=y i7 C1i7a, d.cli7i7g pro/i= margi7s, or .xc1a7g. ra=.<br><br> mo?.m.7=s. t1is is a7 impor=a7= =opic /or /u=ur. r.s.arc1.<br><br> Going forward By d.composi7g C1i7a 9s sp.c=acular .xpor= grow=1 o/ mor. =1a7 500 p.rc.7= si7c. 1992, w.<br><br> w.r. abl. =o =.as.<br><br> ou= a 7um- b.r o/ /i7di7gs, som. o/ w1ic1 may 1.lp guid. policymak.rs.<br><br> Firs=, the dramatic transformation of China 9s export struc- ture over the past 15 years implies that its business environ- ment is relatively flexible, enabling it to move in and out of different sectors. I7 =.rms o/ =1. /l.xibili=y o/ .mploym.7=, C1i7a ra7ks roug1ly o7 a par wi=1 eas= Asia a7d =1.<br><br> Paci/ic a7d sig7i/ica7=ly 1ig1.r =1a7 a?.rag.s /rom =1. o=1.r r.gio7s, i7cludi7g =1os. =1a= co7=ai7 i7dus=rial cou7=ri.s, accordi7g =o =1.<br><br> World Ba7k 9s Doi7g Busi7.ss 2007 i7dica=ors. Fur=1.r, =1. cos= o/ op.7i7g a busi7.ss i7 C1i7a is 9.3 p.rc.7= o/ a?.r- ag.<br><br> p.r capi=a i7com., compar.d wi=1 mor. =1a7 40 p.rc.7= o7 a?.rag. i7 La=i7 Am.rica a7d eas= Asia a7d =1.<br><br> Paci/ic. I7 lig1= o/ =1is .xp.ri.7c., a l.sso7 /or cou7=ri.s s..ki7g =o /ol- low C1i7a 9s l.ad is =1a= =1. .xpor= s.c=or mus= b.<br><br> allow.d =o c1a7g. as i= grows. S.co7d, our results point to an export sector that is tak- ing advantage of China 9s large supply of workers and of the increasing fragmentation of production across countries cur- rently under way, especially in Asia.<br><br> t1. i7cr.as.d amou7= o/ proc.ssi7g =rad. 1as .7abl.d C1i7a =o .xpor= i7cr.asi7gly sop1is=ica=.d produc=s by ass.mbli7g 1ig1-quali=y du=y- /r..<br><br> impor=.d i7pu=s. I7 =1. proc.ss, .xpor=s o/ ma7y goods 1a?.<br><br> i7cr.as.d drama=ically, l.adi7g =o .71a7c.d sp.cializa- =io7. t1is is a =radi=io7al s=ory co7sis=.7= wi=1 a =radi=io7al policy r.comm.7da=io7. Low.ri7g =rad.<br><br> cos=s, bo=1 =ari// a7d 7o7=ari// barri.rs, a7d g.==i7g pric.s rig1= ar. lik.ly =o 1.lp r.sourc.s mo?. =o =1.ir mos= produc=i?.<br><br> us.s. I7d..d, C1i7a 9s a?.rag. =ari// 1as com.<br><br> dow7 /rom abou= 45 p.rc.7= i7 1992 =o 10 p.rc.7= =oday, w1ic1 1as sur.ly /acili=a=.d =1. =ra7s/orma=io7. t1ird, our finding that China 9s rapid export growth has been accompanied by falling export prices implies that con- sumers around the world have benefited from lower prices.<br><br> W1il. C1i7a 9s .xpor= a7d i7com. grow=1 1a?.<br><br> r.mai7.d robus= i7 r.c.7= y.ars, growi7g .xpor=s could pus1 pric.s dow7 /ur=1.r, wi=1 .xpor=.r pro/i=s .?.7=ually su//.ri7g. Goi7g /orward, .xpor=.rs may 1a?. i7c.7=i?.s =o o//s.= d.cli7.s i7 .xpor= pric.s by .xpa7di7g i7=o 7.w produc=s a7d di//.r.7=ia=i7g =1.ir produc=s /rom =1os.<br><br> o/ comp.=i=ors. n Mary Amiti is a Senior Economist with the U.S. Federal Reserve, and Caroline Freund is a Senior Economist in the IMF 9s Re- search Department.<br><br> The views expressed in this article are those o2 the authors and do not necessarily refect those o2 the Federal Reserve Bank o2 New York or the Federal Reserve System. Re2erences Amiti, Mary, and Caroline Freund, 2007, cAn Anatomy o2 China 9s Export Growth, d 2orthcoming in C1i7a 9s Growi7g Rol. i7 World trad.<br><br> , ed. by Robert Feenstra and Shang-Jin Wei (Cambridge, Massachusetts: National Bureau o2 Economic Research). Di Giovanni, Julian, and Andrei Levchenko, 2007, cTrade Openness and Volatility d (unpublished; Washington: International Monetary Fund).<br><br> Hausmann, Ricardo, and Dani Rodrik, 2003, cEconomic Development as Sel2-Discovery, d Jour7al o/ D.?.lopm.7= eco7omics , Vol. 72 (December), pp. 603 333.<br><br> Hummels, David, and Peter Klenow, 2005, cThe Variety and Quality o2 a Nation 9s Exports, d Am.rica7 eco7omic R.?i.w , Vol. 95 (June), pp. 704 323.<br><br> Imbs, Jean, and Romain Wacziarg, 2003, cStages o2 Diversi cation, d Am.rica7 eco7omic R.?i.w , Vol. 93 (March), pp. 63 386.<br><br> Kehoe, Timothy, and Kim Ruhl, 2003, cHow Important Is the New Goods Margin in International Trade? d Research Department Sta22 Report No. 324 (Minneapolis: Federal Reserve Bank o2 Minnesota). Rodrik, Dani, 2006, cWhat 9s So Special about China 9s Exports? d NBER Working Paper No.<br><br> 11947 (Cambridge, Massachusetts: National Bureau o2 Economic Research). Schott, Peter, 2006, cThe Relative Sophistication o2 Chinese Exports, d NBER Working Paper No. 12173 (Cambridge, Massachusetts: National Bureau o2 Economic Research).<br><br> Finance & Development September 2007 41 cThe cost o 5 opening a business in China is 9.3 percent o 5 average per capita income, compared with more than 40 percent on average in Latin America and East Asia and the Pacifc. d

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