Are US Exports Different from China’s Exports? Evidence from Japan’s Imports

23 Pages Posted: 6 Oct 2010

See all articles by Kozo Kiyota

Kozo Kiyota

Keio University - Keio Economic Observatory

Abstract

Are US exports different from China’s exports? If so, how? This article attempts to answer this question, using product-level manufacturing import data from Japan. To make the comparison clear, this article also examines exports from the EU. The results indicate that more than 85 per cent and 83 per cent of products exported by the US and the EU, respectively, to Japan are also commonly exported from China. Both the US and the EU export products are priced higher than China’s export products, regardless of industries. This result suggests that quality differences matter in explaining the high overlap of China’s export products with US and EU export products. In some industries, however, the price differences of US and EU exports relative to China’s exports are relatively small. This result implies that either Chinese firms are upgrading the quality of their products, or US and EU firms are improving their efficiencies such that they can compete with Chinese firms.

Suggested Citation

Kiyota, Kozo, Are US Exports Different from China’s Exports? Evidence from Japan’s Imports. World Economy, Vol. 33, No. 10, pp. 1302-1324, October 2010. Available at SSRN: https://ssrn.com/abstract=1688065 or http://dx.doi.org/10.1111/j.1467-9701.2010.01295.x

Kozo Kiyota (Contact Author)

Keio University - Keio Economic Observatory ( email )

Mita 2-15-45, Minato-ku
Tokyo, 108-8345
Japan

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