Has China de-industrialised other developing countries?

Date: Jan, 2009
ODID Working Paper No. 175
Author(s): Adrian Wood (ODID), Joerg Mayer (UNCTAD)

China's opening to trade is interpreted as a shift in world average factor endowments, which altered the comparative advantage of other countries. In the rest of the world on average, this shift reduced the ratio of labour-intensive manufacturing to primary production by 7-10% for output and 10-15% for exports. China's impact is clearest on East Asian countries: in other developing regions, it was swamped by other causes of structural change. The de-industrialising effect was significant, but not big enough to be a serious threat to growth or equity in most other developing countries. (DATASET AVAILABLE AT: http://www3.qeh.ox.ac.uk/pdf/qehwp/qeh175_dataset.zip )

ODID Author(s)