NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Global View of Productivity Growth in China

Chang-Tai Hsieh, Ralph Ossa

NBER Working Paper No. 16778
Issued in February 2011, Revised in July 2015
NBER Program(s):International Finance and Macroeconomics, International Trade and Investment, Productivity, Innovation, and Entrepreneurship

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.

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Document Object Identifier (DOI): 10.3386/w16778

Published: Chang-Tai Hsieh & Ralph Ossa, 2016. "A Global View of Productivity Growth in China," Journal of International Economics, .

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