Working Paper: NBER ID: w14716
Authors: Robert C. Feenstra; Shangjin Wei
Abstract: Over the last three decades, the value of Chinese trade has approximately doubled every four years. This rapid growth has transformed the country from a negligible player in world trade to the world's second largest exporter, as well as a substantial importer of raw materials, intermediate inputs, and other goods. This paper provides an overview of the microstructure of Chinese trade, its macroeconomic implications, trade disputes with other WTO member countries, and the role of foreign firms.
Keywords: China; World Trade; Trade Growth; Processing Trade; Foreign Direct Investment
JEL Codes: F1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| China's export growth (F14) | Economic conditions of trading partners (F10) |
| China's export growth (F14) | Competitive pressure on countries like India, Malaysia, and Mexico (F69) |
| Rise in processing trade (F14) | Sophistication of Chinese exports (F14) |
| China's industrial production (L69) | Global prices for building materials and commodities (L74) |
| FDI (F23) | Growth of domestic firms in China (F23) |
| Government policies promoting high-tech zones (R38) | Higher-value exports (F14) |