47 Pages Posted: 14 Feb 2011
Date Written: February 2011
How does a country's productivity growth a¤ect worldwide real incomes through international trade? In this paper, we take this classic question to the data by measuring the spillover e¤ects of China's productivity growth. Our framework features traditional terms-of-trade e¤ects and new trade home market e¤ects as suggested by the theoretical literature and works from a reference point which perfectly matches industry-level trade. Focusing on the years 1995 to 2007, we find that the spillover e¤ects of China's productivity growth are small causing the real incomes of China's trading partners to increase by only 0.1 percent on average.
Suggested Citation: Suggested Citation
Hsieh, Chang-Tai and Ossa, Ralph, A Global View of Productivity Growth in China (February 2011). NBER Working Paper No. w16778. Available at SSRN: https://ssrn.com/abstract=1759850