Vertical Specialization and Trade Surplus in China

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An empirical analysis on transformation of China’s foreign trade development mode: based on vertical specialization

Abstract:

This chapter probes the evolution of China’s foreign trade between 1980 and 2009. It establishes an evaluation system to measure the transformation of foreign trade in three aspects: the promotion of China’s export trade structure, China’s total factor productivity, and the promotion of China’s industry structure. It is shown that there is vertical specialization in China. Moreover, foreign invested processing trade products are the primary driving force of the transformation of China’s foreign trade development mode?

Keywords

Transformation

development mode

processing trade

vertical specialization

Introduction ...