TY  - JOUR
AU  - Koopman,Robert
AU  - Wang,Zhi
AU  - Wei,Shang-Jin
TI  - How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14109
PY  - 2008
Y2  - June 2008
UR  - http://www.nber.org/papers/w14109
L1  - http://www.nber.org/papers/w14109.pdf
N1  - Author contact info:
Robert Koopman
Research Division
Office of Economics
US International Trade Commission
500 E Street SW
Washington, DC 20436
E-Mail: Robert.Koopman@usitc.gov

Zhi Wang
Research Division
Office of Economics
US International Trade Commission
500 E Street SW
Washington, DC 20436
E-Mail: zhi.wang@usitc.gov

Shang-Jin Wei
Graduate School of Business
Columbia University
Uris Hall 619
3022 Broadway
New York, NY 10027-6902
Tel: 212/854-9139
E-Mail: shangjin.wei@columbia.edu
AB  - The rise of China in world trade has brought both benefits and anxiety to other economies. For many policy questions, it is crucial to know the extent of domestic value added (DVA) in exports, but the computation is more complicated when processing trade is pervasive. We propose a method for computing domestic and foreign contents that allows for processing trade. By our estimation, the share of domestic content in exports by the PRC was about 50% before China’s WTO membership, and has risen to over 60% since then. There are also interesting variations across sectors. Those sectors that are likely labeled as relatively sophisticated such as electronic devices have particularly low domestic content (about 30% or less).
ER  -