TY  - JOUR
AU  - Feenstra,Robert C.
AU  - Hanson,Gordon H.
AU  - Lin,Songhua
TI  - The Value of Information in International Trade: Gains to Outsourcing through Hong Kong
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9328
PY  - 2002
Y2  - November 2002
UR  - http://www.nber.org/papers/w9328
L1  - http://www.nber.org/papers/w9328.pdf
N1  - Author contact info:
Robert C. Feenstra
Department of Economics
University of California, Davis
One Shields Avenue
Davis, CA  95616
Tel: 530/752-7022
Fax: 530/752-9382
E-Mail: rcfeenstra@ucdavis.edu

Gordon H. Hanson
IR/PS 0519
University of California, San Diego
9500 Gilman Drive
La Jolla, CA  92093-0519
Tel: 858/822-5087
Fax: 858/534-3939
E-Mail: gohanson@ucsd.edu

Songhua Lin
E-Mail: lins@denison.edu
AB  - In this paper, we estimate the benefits to countries that purchase goods from China of having access to intermediary services provided by Hong Kong. Traders in Hong Kong supply information on markets and producers in China, which provides welfare gains to foreign firms using these services. During the 1990s, Hong Kong intermediated about half of the goods that China exported to the rest of the world. Our results suggests that gains to intermediary services provided by Hong Kong equal 16% of the value of goods that China exports to other countries through Hong Kong, and range between 10% and 21% of this export value for various manufacturing goods and across different years.
ER  -