Robert Koopman, Zhi Wang, Shang-Jin Wei, 08 August 2008

Many policy assessments, such as the effect of a currency revaluation on trade balances, are sensitive to the share of domestic content in a country’s exports. The current method might be problematic for countries with a high share of processing exports, such as China, Mexico and Vietnam. This column introduces a new method for calculating domestic content shares and presents some striking estimates for China. The share of domestic content in China’s exports is about 50%, much lower than most other countries: this implies that an exchange rate appreciation is likely to have a smaller effect on China’s trade surplus than for other countries.

Events

  • 17 - 18 August 2019 / Peking University, Beijing / Chinese University of Hong Kong – Tsinghua University Joint Research Center for Chinese Economy, the Institute for Emerging Market Studies at Hong Kong University of Science and Technology, the Guanghua School of Management at Peking University, the Stanford Center on Global Poverty and Development at Stanford University, the School of Economics and Management at Tsinghua University, BREAD, NBER and CEPR
  • 19 - 20 August 2019 / Vienna, Palais Coburg / WU Research Institute for Capital Markets (ISK)
  • 29 - 30 August 2019 / Galatina, Italy /
  • 4 - 5 September 2019 / Roma Eventi, Congress Center, Pontificia Università Gregoriana Piazza della Pilotta, 4, Rome, Italy / European Center of Sustainable Development , CIT University
  • 9 - 14 September 2019 / Guildford, Surrey, UK / The University of Surrey

CEPR Policy Research