Export Sophistication, Diversification And Product Space Evolution

8487 Words Sep 2nd, 2015 34 Pages
Abstract

By assessing the export sophistication, diversification and product space evolution, we discuss the reasons behind thirty years’ growth miracle of Chinese economy and causes of recent slowdown. Disaggregated export data dating back to 1985 is utilized to analyse the characteristics of China’s export basket especially its sophistication level and diversification degree. And China’s development path as constantly extending into production of new and more complex commodities is discussed. From the perspective of product space, the following progress route is identified. It firstly diversified from primary goods to manufactured articles, and then to electronics clusters as technology improved and capabilities accumulated. Currently, China is developing in machinery, chemicals and heath products. In addition, series of problems beneath prosperity and reasons of slowdown are also emphasised. It’s suggested that Chinese economy’s slowdown may seem inevitable while the slowdown also serves as a great opportunity to reflect on its internal and external problems alongside the development so as to deepen economic reform and rebalance the growth structure.

Keywords: export sophistication, diversification, product space and Chinese economy 1.Introduction

Chinese economy has benefited from three decades of spectacular development with average annual GDP growth rate approximating 10% . In 2013, China’s gross domestic product reached $4912.95 billion (constant 2005 US…
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