IDEAS home Printed from https://ideas.repec.org/a/spr/weltar/v147y2011i2p325-350.html
   My bibliography  Save this article

Has China de-industrialised other developing countries?

Author

Listed:
  • Adrian Wood
  • Jörg Mayer

Abstract

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
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Adrian Wood & Jörg Mayer, 2011. "Has China de-industrialised other developing countries?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 325-350, June.
    • Handle: RePEc:spr:weltar:v:147:y:2011:i:2:p:325-350
    DOI: 10.1007/s10290-011-0088-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10290-011-0088-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10290-011-0088-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The revived Bretton Woods system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 307-313.
    2. Andrea Goldstein & Nicolas Pinaud & Helmut Reisen, 2006. "The Rise of China and India: What's in it for Africa?," OECD Development Centre Policy Insights 19, OECD Publishing.
    3. Mesquita Moreira, Mauricio, 2007. "Fear of China: Is There a Future for Manufacturing in Latin America?," World Development, Elsevier, vol. 35(3), pages 355-376, March.
    4. Daniel Lederman & Marcelo Olarreaga & Eliana Rubiano, 2008. "Trade Specialization in Latin America: The Impact of China and India," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 248-271, July.
    5. Yongzheng Yang, 2003. "China'S Integration Into the World Economy: Implications for Developing Countries," IMF Working Papers 2003/245, International Monetary Fund.
    6. David Greenaway & Aruneema Mahabir & Chris Milner, 2010. "Has China Displaced Other Asian Countries’ Exports?," Palgrave Macmillan Books, in: David Greenaway & Chris Milner & Shujie Yao (ed.), China and the World Economy, chapter 4, pages 60-90, Palgrave Macmillan.
    7. Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December.
    8. Sanjaya Lall & John Weiss & Hiroshi Oikawa, 2005. "China's Competitive Threat to Latin America: An Analysis for 1990-2002," Oxford Development Studies, Taylor & Francis Journals, vol. 33(2), pages 163-194.
    9. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
    10. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
    11. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    12. Adrian Wood (ODID), "undated". "A more general Heckscher-Ohlin model," QEH Working Papers qehwps185, Queen Elizabeth House, University of Oxford.
    13. Jorg Mayer & Adrian Wood, 2001. "South Asia's Export Structure in a Comparative Perspective," Oxford Development Studies, Taylor & Francis Journals, vol. 29(1), pages 5-29.
    14. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters, in: China's Growing Role in World Trade, pages 35-56, National Bureau of Economic Research, Inc.
    15. Alberto Melo, 2001. "Industrial Policy in Latin America and the Caribbean at the Turn of the Century," IDB Publications (Working Papers) 6492, Inter-American Development Bank.
    16. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    17. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
    18. Gordon H. Hanson & Raymond Robertson, 2010. "China and the Manufacturing Exports of Other Developing Countries," NBER Chapters, in: China's Growing Role in World Trade, pages 137-159, National Bureau of Economic Research, Inc.
    19. Irene Brambilla, 2010. "Comment on "China and the Manufacturing Exports of Other Developing Countries"," NBER Chapters, in: China's Growing Role in World Trade, pages 159-163, National Bureau of Economic Research, Inc.
    20. Spilimbergo, Antonio & Londono, Juan Luis & Szekely, Miguel, 1999. "Income distribution, factor endowments, and trade openness," Journal of Development Economics, Elsevier, vol. 59(1), pages 77-101, June.
    21. Kaplinsky, Raphael & Morris, Mike, 2008. "Do the Asian Drivers Undermine Export-oriented Industrialization in SSA," World Development, Elsevier, vol. 36(2), pages 254-273, February.
    22. Gallagher, Kevin P. & Moreno-Brid, Juan Carlos & Porzecanski, Roberto, 2008. "The Dynamism of Mexican Exports: Lost in (Chinese) Translation?," World Development, Elsevier, vol. 36(8), pages 1365-1380, August.
    23. Adrian Wood (QEH), "undated". "Heckscher-Ohlin in Theory and Reality," QEH Working Papers qehwps157, Queen Elizabeth House, University of Oxford.
    24. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
    25. Peter K. Schott, 2008. "The relative sophistication of Chinese exports [‘Manufacturing Earnings and Compensation in China’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 6-49.
    26. Adrian Wood (QEH), "undated". "Openness is a Matter of Degree: How Trade Costs Reduce Demand Elasticities," QEH Working Papers qehwps169, Queen Elizabeth House, University of Oxford.
    27. Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries," NBER Working Papers 10332, National Bureau of Economic Research, Inc.
    28. Dimaranan, Betina & Ianchovichina, Elena & Martin, William J., 2007. "China, India, and the future of the world economy : fierce competition or shared growth?," Policy Research Working Paper Series 4304, The World Bank.
    29. Jorg Mayer & Pilar Fajarnes, 2008. "Tripling Africa's Primary Exports: What, How, Where?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 80-102.
    30. Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2007. "China and the Exports of Other Asian Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(2), pages 201-226, July.
    31. Wood, Adrian & Mayer, Jorg, 2001. "Africa's Export Structure in a Comparative Perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(3), pages 369-394, May.
    32. Betina Dimaranan & Elena Ianchovichina & Will Martin, 2009. "How will growth in China and India affect the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 551-571, October.
    33. Alessandro Nicita & Marcelo Olarreaga, 2007. "Trade, Production, and Protection Database, 1976--2004," The World Bank Economic Review, World Bank, vol. 21(1), pages 165-171.
    34. Rodríguez-Clare, Andrés & Devlin, Robert & Estevadeordal, Antoni, 2006. "The Emergence of China: Opportunities and Challenges for Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 421, November.
    35. L. Alan Winters & Shahid Yusuf, 2007. "Dancing with the Giants: China, India, and the Global Economy," World Bank Publications - Books, The World Bank Group, number 6632.
    36. Melo, Alberto, 2001. "Industrial Policy in Latin America and the Caribbean at the Turn of the Century," IDB Publications (Working Papers) 6088, Inter-American Development Bank.
    37. Andrés Rodríguez-Clare & Robert Devlin & Antoni Estevadeordal, 2006. "The Emergence of China: Opportunities and Challenges for Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 79458 edited by Andrés Rodríguez-Clare & Robert Devlin & Antoni Estevadeordal, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olivier Cadot & Jaime de Melo & Patrick Plane & Laurent Wagner & Martha Tesfaye Woldemichael, 2016. "Industrialisation et transformation structurelle : l’Afrique subsaharienne peut-elle se développer sans usines ?," Revue d’économie du développement, De Boeck Université, vol. 24(2), pages 19-49.
    2. Naved Hamid & Maha Khan, 2015. "Pakistan: A Case of Premature Deindustrialization?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 107-141, September.
    3. Iacovone, Leonardo & Rauch, Ferdinand & Winters, L. Alan, 2013. "Trade as an engine of creative destruction: Mexican experience with Chinese competition," Journal of International Economics, Elsevier, vol. 89(2), pages 379-392.
    4. Alexandra Sotiriou & Andrés Rodríguez-Pose, 2021. "Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile," Journal of Development Studies, Taylor & Francis Journals, vol. 57(12), pages 2095-2111, December.
    5. Umberto Monarca & Ernesto Cassetta & Michele Lo Re & Linda Meleo, 2019. "A Network Analysis of the Intersectoral Linkages Between Manufacturing and Other Industries in China and Italy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(1-2), pages 80-97, January.
    6. Christoph Scherrer, 2018. "The Disrupted Passage from an Agrarian Rural to an Industrial Urban Workforce in Most Countries in the Global South," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 7(3), pages 301-319, December.
    7. Christoph Scherrer, 2018. "Labour surplus is here to stay: why ‘decent work for all’ will remain elusive," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 20(2), pages 293-307, October.
    8. L. Alan Winters, 2012. "Living with China—Locally and Globally," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 37-58.
    9. Olivier CADOT & Jaime de MELO & Patrick PLANE & Laurent WAGNER & Martha TESFAYE WOLDEMICHAEL, 2017. "L’Afrique subsaharienne peut-elle se développer sans usines ?," Working Paper 084c8bee-b301-4412-8ca4-c, Agence française de développement.
    10. Bräutigam, Deborah & Tang, Xiaoyang, 2014. "“Going Global in Groups”: Structural Transformation and China’s Special Economic Zones Overseas," World Development, Elsevier, vol. 63(C), pages 78-91.
    11. Adrian Wood, 2017. "Variation in structural change around the world, 1985–2015: Patterns, causes and implications," WIDER Working Paper Series 034a, World Institute for Development Economic Research (UNU-WIDER).
    12. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
    13. Wong, Chin-Yoong & Eng, Yoke-Kee & Habibullah, Muzafar Shah, 2014. "Rising China, anxious Asia? A Bayesian New Keynesian view," China Economic Review, Elsevier, vol. 28(C), pages 90-106.
    14. Sabyasachi Kar & Selim Raihan & Kunal Sen, 2017. "Do economic institutions matter for growth episodes?," Global Development Institute Working Paper Series esid-092-17, GDI, The University of Manchester.
    15. Nguyen, Anh & Nguyen, Nhat, 2010. "Vietnam Industrial Policy and Large Economic Groups: A discussion," MPRA Paper 63461, University Library of Munich, Germany.
    16. Adrian Wood, 2017. "Variation in structural change around the world, 1985-2015: Patterns, causes and implications," WIDER Working Paper Series wp-2017-34, World Institute for Development Economic Research (UNU-WIDER).
    17. L Alan Winters, 2015. "China and the World Trading System: Will ‘In and Up’ be replaced by ‘Down and Out’?," RSCAS Working Papers 2015/82, European University Institute.
    18. Mr. Alberto Behar, 2013. "The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries," IMF Working Papers 2013/050, International Monetary Fund.
    19. Steven Husted & Shuichiro Nishioka, 2013. "China’s fare share? The growth of Chinese exports in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 565-585, September.
    20. Haraguchi, Nobuya & Cheng, Charles Fang Chin & Smeets, Eveline, 2017. "The Importance of Manufacturing in Economic Development: Has This Changed?," World Development, Elsevier, vol. 93(C), pages 293-315.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Débora Bellucci Módolo & Celio Hiratuka, 2017. "The impact of Chinese competition on third markets: An analysis by region and technological category," Development Policy Review, Overseas Development Institute, vol. 35(6), pages 797-821, November.
    2. Iacovone, Leonardo & Rauch, Ferdinand & Winters, L. Alan, 2013. "Trade as an engine of creative destruction: Mexican experience with Chinese competition," Journal of International Economics, Elsevier, vol. 89(2), pages 379-392.
    3. Larry D. Qiu & Chaoqun Zhan, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 45-71, February.
    4. Yoke Fong Kong & Richard Kneller, 2016. "Measuring the Impact of China's Export Growth on its Asian Neighbours," The World Economy, Wiley Blackwell, vol. 39(2), pages 195-220, February.
    5. Harald Fadinger & Pablo Fleiss, 2011. "Trade and Sectoral Productivity," Economic Journal, Royal Economic Society, vol. 121(555), pages 958-989, September.
    6. Sargent, John & Matthews, Linda, 2009. "China versus Mexico in the Global EPZ Industry: Maquiladoras, FDI Quality, and Plant Mortality," World Development, Elsevier, vol. 37(6), pages 1069-1082, June.
    7. Kevin Gallagher & Roberto Porzecanski, 2009. "China and the Latin America Commodities Boom: A Critical Assessment," Working Papers wp192, Political Economy Research Institute, University of Massachusetts at Amherst.
    8. Adrian Wood (ODID), "undated". "A practical Heckscher-Ohlin model," QEH Working Papers qehwps170, Queen Elizabeth House, University of Oxford.
    9. Peter E Robertson & Jessica Y Xu, 2010. "In China's Wake: Has Asia Gained From China's Growth?," Economics Discussion / Working Papers 10-15, The University of Western Australia, Department of Economics.
    10. Benedikt Heid & Raúl Mínguez & Asier Minondo, 2021. "Is competition from China so special?," The World Economy, Wiley Blackwell, vol. 44(1), pages 64-88, January.
    11. Adrian Wood (ODID), "undated". "A more general Heckscher-Ohlin model," QEH Working Papers qehwps185, Queen Elizabeth House, University of Oxford.
    12. Edwards, Lawrence & Jenkins, Rhys, 2014. "The margins of export competition: A new approach to evaluating the impact of China on South African exports to Sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 36(S1), pages 132-150.
    13. Matthias Flückiger & Markus Ludwig, 2015. "Chinese export competition, declining exports and adjustments at the industry and regional level in Europe," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 1120-1151, August.
    14. Ianchovichina, Elena & Ivanic, Maros & Martin, Will, 2009. "Implications of the growth of China and India for the other Asian giant : Russia," Policy Research Working Paper Series 5075, The World Bank.
    15. Majlesi, Kaveh & Narciso, Gaia, 2018. "International import competition and the decision to migrate: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 132(C), pages 75-87.
    16. Baiardi, Donatella & Bianchi, Carluccio, 2019. "At the roots of China's striking performance in textile exports: A comparison with its main Asian competitors," China Economic Review, Elsevier, vol. 54(C), pages 367-389.
    17. Richard L. Bernal, 2015. "The Growing Economic Presence of China in the Caribbean," The World Economy, Wiley Blackwell, vol. 38(9), pages 1409-1437, September.
    18. Ciani, Andrea & Mau, Karsten, 2023. "Delivery times in international competition: An empirical investigation," Journal of Development Economics, Elsevier, vol. 161(C).
    19. Decreux, Yvan & Ramos, Maria Priscila, 2007. "How does tariff-rate quota modelling affect CGE results? An application for MIRAGE," Working Papers 7206, TRADEAG - Agricultural Trade Agreements.
    20. Utar, Hale & Ruiz, Luis B. Torres, 2013. "International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras," Journal of Development Economics, Elsevier, vol. 105(C), pages 267-287.

    More about this item

    Keywords

    Development; Heckscher-Ohlin theory; China; De-industrialisation; F11; F15; O14; O19;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:147:y:2011:i:2:p:325-350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.