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Kishor Sharma and Wang Wei

The purpose of this chapter is to examine the role of vertical specialization in the expansion of Chinese foreign trade. The investigation of this issue is particularly important in the context of rising cross-border trade in intermediate inputs. In an environment in which cross-border trade in intermediate inputs is rising rapidly, the standard measure of exports (which is determined by the market value of goods sold internationally) can be much higher compared to domestic value-added (not including the value of imported components), providing an overestimated value of exports and hence inaccurate representation of net trade. As China’s foreign trade continues to expand, especially following its accession to the World Trade Organization (WTO), the examination of the role of vertical specialization in this process can provide useful policy insights.

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Kishor Sharma and Oliver Morrissey

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Edited by Oliver Morrissey, Ricardo Lopez and Kishor Sharma

This Handbook comprehensively explores the complex relationships between trade and economic performance in developing countries. Insightful chapters cover issues such as trade, growth and poverty reduction; trade costs, facilitation and preferences; sub-Saharan Africa’s reliance on trade in primary commodities, informal cross-border trade, agglomeration and firm exporting; imported technology, exchange rates and the impact of firm exporting; the increasing importance of China in world trade and links between FDI and trade. This Handbook provides an essential overview of trade issues facing developing countries.
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Oliver Morrissey, Ricardo A. López and Kishor Sharma