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Article: Report summarizes development economics study findings from S. Claro and co-researchers.
- Article from:
- Economics Week
- Article date:
- November 20, 2009
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According to a study from Santiago, Chile, "Two features of China's trade patterns suggest that elements beyond factor abundance explain its export performance."
"The high penetration in world markets of labor-intensive products has been accompanied by: (i) a high share in exports of productivity-advanced foreign-invested enterprises (FIEs) and (ii) a high penetration of FIEs in labor-intensive sectors. We show that FDI liberalization endogenously introduces Ricardian features to an otherwise standard endowment-based trade model, strengthening China's natural comparative advantage in labor-intensive products," wrote S. Claro and colleagues.
The ...