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Domestic value added in exports: theory and firm evidence from China (English)

China has defied the declining trend in domestic content in exports in many countries. This paper studies China’s rising domestic content in exports using firm- and customs transaction-level data. The approach embraces firm heterogeneity and hence reduces aggregation bias. The study finds that the substitution of domestic for imported materials by individual processing exporters caused China’s domestic content in exports to increase from 65 to 70...
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Kee,Hiau Looi; Tang,Heiwai.

Domestic value added in exports: theory and firm evidence from China (English). Paper is funded by the Strategic Research Program (SRP)|Policy Research working paper|no. WPS 7491 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/125771468185954603

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